AMINEX PLC
27 September 1999
AMINEX SIGNS FINANCING AGREEMENT WITH
MCALESTER FUEL COMPANY
Aminex PLC, the London and Dublin listed oil and gas company, announces that
its wholly owned subsidiary Aminex USA Inc has entered into a participation
agreement with a group of investors in Europe and the USA led by the McAlester
Fuel Company of Houston ('the investor group'). The investor group has agreed
to fund ten initial wells commencing in October 1999 and has an option to fund
an additional thirty wells in Aminex USA Inc.'s proposed exploration and
development drilling programme through to the end of 2000 in the onshore Gulf
Coast area of Texas and Louisiana.
Aminex has generated a large number of new drilling prospects as a result of a
major 3D seismic acquisition programme on previously held acreage and the more
recent acquisition of properties from Unexco Inc announced to shareholders in
April this year. The wells will be drilled on a number of different prospects
with varying net revenue interests, drilling costs and geological objectives.
All these prospects have been defined by 3D seismic technology.
Under the terms of the agreement the investor group will earn a revenue stream
equivalent to half Aminex's net revenue interest in each case, with no further
recourse to Aminex in the event that drilling efforts are unsuccessful. The
wide spread of wells proposed is expected to result in a material increase in
production and reserves. The currently estimated cost of the initial ten
wells, which may be subject to changes as the drilling programme progresses,
is $11 million.
Commenting on the announcement, Aminex Chairman, Peter Elwes said:
'Having acquired an impressive inventory of exploration and development
prospects on favourable terms during 15 months of low oil prices, I am
confident that this financing agreement with the investor group will allow us
to exploit fully the potential in these areas of Texas and Louisiana. The
commencement of this programme next month represents a major increase in the
scale and diversity of Aminex's US operations.'
For further information:
Brian Hall Aminex PLC 0171 240 1600
Antonio Prado Aminex Inc PLC 001 210 545 0429
John Evans Gavin Anderson & Company 0171 457 2345