Business
Egypt Update
Egypt Update.
About this update from Aminex Plc
[{"type":"text","content":"\n Aminex PLC\n04 August 2006\n\n Aminex PLC\n\n EGYPTIAN FARM-OUT AND INTEREST ASSIGNMENT\n\n 4 August 2006\n\n\nAminex PLC (\"Aminex\") announces two separate transactions in connection with its\nBlock 2, West Esh El Mellaha (\"WEEM\") concession in the Eastern Desert of Egypt:\n \n(1) Aminex Petroleum Egypt Ltd. (\"APEL\") has concluded a farm-out of a 20%\n interest in WEEM to Groundstar Resources Ltd. (\"Groundstar\") of Calgary.\n Groundstar has committed to fund 40% of the financial obligations under the \n WEEM Production Sharing Agreement up to a ceiling of $9 million ($3.6 \n million net to Groundstar) in order to earn a 20% working interest. In \n addition to Aminex, shareholders in APEL are First Energy Pty Ltd. (\"First \n Energy\"), PetroSino Ltd and FS International Corporation.\n\n(2) Under separate arrangements involving the original shareholders of APEL\n (formerly known as Red Sea Petroleum Ltd.), First Energy has been acquired\n jointly by Volant Petroleum Ltd., an Australian public company and by Karl\n Thomson Group of Hong Kong. As part of these arrangements Aminex will \n reduce its beneficial shareholding in APEL to 12.5%. Aminex's 12.5% share \n of the exploration costs for APEL's 80% interest in WEEM will now be \n carried through to first commercial production, free of any financial \n commitment. This equates to a carried interest of 10% in the WEEM \n concession.\n\nThe WEEM Production Sharing Agreement calls for three exploration wells to be\ndrilled in the initial three year period. The concession has been formally\napproved by President Mubarak of Egypt and the initial period will commence as\nsoon as formal signing has been completed with the Egyptian Minister of Energy,\nexpected to be in the near future.\n\nThe WEEM licence covers 1,328 sq. kilometres and lies in the southern portion of\nthe well-established Gulf of Suez petroleum basin. Five producing fields are\nlocated on the adjacent block to the south-east, operated by Lukoil Overseas and\ncurrently producing approximately 12,000 barrels per day in aggregate. Oil and\ngas pipelines with surplus capacity are situated close to WEEM.\n\nCommenting on the announcement Aminex Chief Executive Brian Hall said: \"We are\nvery pleased to welcome Groundstar as a partner in the WEEM concession. The\narrangements with our fellow founding shareholders...