Business
US Operations Update
US Operations Update.
About this update from Aminex Plc
[{"type":"text","content":"\n Aminex PLC\n16 February 2006\n\n16 FEBRUARY 2006\n\n AMINEX PLC\n\nUPDATE ON US ACTIVITIES AT SOUTH WESLACO, HIDALGO COUNTY, TEXAS AND SHOATS\nCREEK, CALCASIEU PARISH, LOUISIANA\n\nAminex PLC (\"Aminex\"), the oil and gas company listed in London and Dublin,\ntoday announces an update on its US activities.\n\nSOUTH WESLACO\n\nAt South Weslaco, Hidalgo County, Texas Aminex participated in the drilling of\ntwo wells during 2005 as part of an ongoing multi-well development drilling\nprogramme. The GU-35 and the GU-36 were both drilled to a total depth of 9,000\nfeet (2,743 metres). In each case logs encountered commercial quantities of gas\nin multiple formations. A rig was mobilised in December for completion of both\nwells after a long waiting period which was a direct result of the current\nshortage of mobile equipment. In mid-December both wells were put on extended\nproduction test and, following a period of consistent flow rates of a combined\n3.1 million cubic feet per day with negligible depletion, are now on permanent\nproduction from the lower sands.\n\nThere is considerable scope for producing \"behind pipe\" reserves in these well\nbores from additional zones in the future. Aminex's wholly-owned subsidiary\nAminex USA, Inc. has a 25% working interest in these wells and the operator is\nKayler Energy. The next well in the programme is designed to test deeper\nformations and will be spudded as soon as a drilling rig comes available.\n\nSHOATS CREEK\n\nAminex has recently commenced a rehabilitation programme on the Shoats Creek\nField, Calcasieu Parish, Louisiana. In the past, difficult operating conditions\nand competing projects made further investment in this field sub-economic but a\nrecent engineering review and new economic modelling indicate the potential for\nsignificant untapped reserves and produce a strong business case for early\nredevelopment. The existing well bores are completed in the Cockfield Sands at\ndepths of between 8,000 ft and 9,500 ft. (2,438 metres and 2,896 metres).\n\nThe Cain-1 well at Shoats Creek has already been re-equipped and recompleted and\nis producing at an average rate of 35 barrels per day. New oil tanks and\nfacilities are currently being installed at the field, old flow lines and\nredundant infield equipment are being removed and a second workover is in\nprogress.\n\nAminex Chie...