REG - Aminex PLC - Final Results and Annual Report 2024

AminexAnnouncement

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RNS Number : 6901G  Aminex PLC  29 April 2025

29 April 2025

 

FINAL RESULTS for year ended 31 december 2024 AND ANNUAL REPORT

 

Aminex PLC ('Aminex' or the 'Company') is pleased to announce its audited
financial results for the year ended 31 December 2024.

 

Highlights

 

Outlook:

•     Signing of the Engineering, Procurement and Construction contract
to construct the 30-kilometre pipeline from Ntorya to the Madimba Gas
Processing Plant anticipated shortly, with expected capacity of 140 MMcfd.

•     Upon completion of the construction of the Ntorya-Madimba
pipeline, Ntorya-2 ("NT-2") will be hooked up for production, now expected in
mid-2026, given the delays with the Ntorya-Madimba pipeline.

•     Drilling contract options are presently under review for the
subsequent drilling of Chikumbi-1 ("CH-1") and the workover of Ntorya-1
("NT-1").

•     Vastly expanded plan to develop the Ntorya Field prepared by the
operator, ARA Petroleum Tanzania Limited ("APT"), which envisages a phased
development with up to 14 new wells to be drilled in the next decade to
potentially double the anticipated gas production rate to 280 MMcfd.

•     Funding facility for up to US$3 million from Eclipse Investments
LLC, should ensure sufficient working capital until first gas production.

 

During 2024 and early 2025:

•     Completed the processing and interpretation of the newly acquired
3D seismic data, the largest onshore seismic campaign in East Africa, covering
338 km² over the Ntorya Gas Field.

•     Awarded a 25-year Development Licence over the Ntorya Field.

•     Submitted a revised and expanded Ntorya Field Development Plan.

•     Selected an optimal location for drilling the CH-1 well using the
3D seismic data.

•     Secured all long-lead items for the drilling of CH-1 and the
workover of NT-1.

•     Completed preparation work for gas production, including
processing facilities, flow lines, and hookups.

•     Signed a Gas Sales Agreement between APT, TPDC and Aminex.

•     Ruvuma PSA Farm-Out Carry of US$35 million covered Aminex for all
2024 Ntorya costs with US$29.24 million of the Carry remaining as at 31
December 2024.

•     Maintained reduced gross G&A costs (before one-off costs and
non-cash items) of US$1.59 million per annum in 2024.

•     Loss for the year of US$5.30 million (2023: loss of US$1.12
million). Increase due principally to decommissioning costs of US$2.83 million
within asset impairment charges being higher (due to higher decommissioning
cost assumptions) and a release of tax provisions of US$1.09 million in 2023.
 

 

The Annual Report may be viewed on the Company's website at www.aminex-plc.com
(http://www.aminex-plc.com)

 

Aminex also advises that its Annual General Meeting will be held at 2.00 pm on
24 July 2025 at The Geological Society, Burlington House, Piccadilly, London
W1J 0BG.

 

Paper copies of the Annual Report together with the Notice of Annual General
Meeting, including the Form of Proxy, will be mailed in due course to those
shareholders who have elected to receive paper copies.

 

The Executive Chairman's Statement from the Annual Report follows below:

 

Executive Chairman's Statement

 

Dear Shareholder,

 

I am pleased to say that in the last fifteen months we have progressed the
Ntorya Gas Development significantly. Since our last annual report, the
Tanzanian government has awarded a 25-year Development Licence over the Ntorya
licence area, securing the project for Aminex and operator ARA Petroleum
Tanzania ("APT").

 

I was honoured to be present at the official licence handover ceremony in
Mtwara, Tanzania, an event celebrated joyfully by over 1,000 people, including
Deputy Prime Minister and Minister for Energy of Tanzania Dr. Doto Mashaka
Biteko, Members of Parliament, regional and local dignitaries as well members
of the public.

 

The licence is the first to be awarded in 13 years and at the handover
ceremony I witnessed how committed the government is to using Tanzania's
resources to eliminate energy poverty, unlock jobs and business opportunities
for its people and drive industrialisation.

 

Tanzania's population is set to double by 2050 and its largest city, Dar es
Salaam, will become a megacity in just five years. The country is bursting
with talented, educated and optimistic young people. Demand for residential
electricity, cleaner cooking fuels than wood and charcoal, and energy to power
expanding industries will only climb in that time.

 

We believe the recent turmoil in global financial markets, which has caused
concern in the investor community and disrupted international trade, should
have negligible impact on the Ntorya project. The fundamentals underpinning
demand for gas in Tanzania remain robust in the face of recent global market
volatility.

 

The plan to develop Ntorya has been vastly expanded in the past year.
Following the results of a 3D seismic survey over the wider Ntorya licence
area, APT updated the draft Ntorya Field Development Plan and submitted it to
the Tanzania Petroleum Development Corporation ("TPDC") for their input. It
now envisages a phased development with up to 14 new wells to be drilled in
the next decade to potentially double the anticipated gas production rate to
280 MMcfd.

 

The January 2024 signing of a Gas Sales Agreement with the TPDC secures a
buyer for the first phase of gas production and ensures the Tanzanian people
benefit from its extraction. With these milestones in place, the Ntorya Gas
Development is on the verge of the construction phase with just the tender
award for the construction of a gas pipeline to the Madimba Gas Processing
Plant needed before ground is broken.

 

Key Milestones Achieved in 2024 and Early 2025

 

•   Completion of the processing and interpretation of the newly acquired
3D seismic data, the largest onshore seismic campaign in East Africa, covering
338 km² over the Ntorya Gas Field.

•   The award of a 25-year Development Licence.

•   Submission of a revised and expanded Ntorya Field Development Plan.

•   Selection of an optimal location for drilling the CH-1 well using the
3D seismic data.

•   Securing of all long-lead items for the drilling of CH-1 and the
workover of NT-1.

•   Completing preparation work for gas production, including processing
facilities, flow lines, and hookups.

•   Signing a GSA between APT, TPDC and Aminex.

 

Path to First Gas

 

We understand that TPDC will soon be signing an Engineering, Procurement and
Construction contract to construct the 30-kilometre pipeline from Ntorya to
the Madimba Gas Processing Plant. This pipeline is expected to have a capacity
of 140 MMcfd and will draw gas from the Ntorya-1 ("NT-1"), Ntorya-2 ("NT-2"),
and Chikumbi-1 ("CH-1") wells. The pipeline will enable us to commence the
monetisation of our gas production by mid-2026.

 

Upon completion of the construction of the Ntorya-Madimba pipeline, NT-2 will
be hooked up for production. Drilling contract options are presently under
review for the subsequent drilling of CH-1 and the workover of NT-1. These
three wells are anticipated to produce gas for the initial phase of the
development.

 

Financial prudence

 

The 2020 Farm-Out of the Ruvuma PSA should allow the Company to achieve
significant production and revenue levels without requiring additional
shareholder funding for the Ntorya gas field development. Aminex holds a 25%
interest in the Ruvuma PSA with a US$35 million carry, equivalent to US$140
million in gross field expenditure, which is expected to support the Company
through to potentially substantial production and revenue generation.

 

In April 2024, Eclipse Investments LLC, ARA Petroleum and Aminex signed a
funding facility for up to US$3 million, which should ensure the provision of
sufficient working capital until revenues commence from Ntorya gas sales.

 

We continue to operate with significantly reduced corporate overheads. Base
running costs (excluding non-cash and one-off items) were essentially
unchanged at US$1.59 million in 2024 compared to US$1.58 million in 2023. Base
running costs therefore remain 70% lower than in 2018 when cost-cutting
measures were first introduced. The Company maintains an efficient operational
structure, ensuring flexibility and accessing strategic opportunities whilst
mitigating business risks.

 

Transforming Tanzania and Aminex

 

Tanzania views natural gas as a crucial element to alleviate energy poverty.
Natural gas drives economic development while being significantly cleaner than
other fossil fuels such as oil, coal, and charcoal. It also provides a more
reliable energy source in tropical regions than hydroelectric power, which is
susceptible to variable seasonal rainfall.

 

We take great pride in being a founding partner in this project, which will
supply such a critical resource. In fact, we think Ntorya gas is more than a
resource - it's a catalyst for national transformation.

 

The progress made on the Ntorya project will provide shareholders with growing
value this year as we realise a path to positive cash flow and the opportunity
to use this pivotal project as a foundation to grow our Company further.

 

I want to thank our shareholders and our dedicated staff for their continued
support and patience, and I look forward to a successful year ahead delivering
the rewards that the Ntorya development will hopefully bring to all of us.

 

Yours sincerely,

 

Charles Santos

Executive Chairman

 

 

 For further information:

 Aminex PLC                            +44 203 355 9909
 Charles Santos, Executive Chairman

 Knights Media & Public Relations      +44 203 653 0200
 Jason Knights, Sabina Zawadzki

 Davy                                  +353 1 679 6363
 Brian Garrahy

 Shard Capital Partners                +44 207 186 9952
 Damon Heath

 

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