Aminex PLC
04 August 2006
Aminex PLC
EGYPTIAN FARM-OUT AND INTEREST ASSIGNMENT
4 August 2006
Aminex PLC ("Aminex") announces two separate transactions in connection with its
Block 2, West Esh El Mellaha ("WEEM") concession in the Eastern Desert of Egypt:
(1) Aminex Petroleum Egypt Ltd. ("APEL") has concluded a farm-out of a 20%
interest in WEEM to Groundstar Resources Ltd. ("Groundstar") of Calgary.
Groundstar has committed to fund 40% of the financial obligations under the
WEEM Production Sharing Agreement up to a ceiling of $9 million ($3.6
million net to Groundstar) in order to earn a 20% working interest. In
addition to Aminex, shareholders in APEL are First Energy Pty Ltd. ("First
Energy"), PetroSino Ltd and FS International Corporation.
(2) Under separate arrangements involving the original shareholders of APEL
(formerly known as Red Sea Petroleum Ltd.), First Energy has been acquired
jointly by Volant Petroleum Ltd., an Australian public company and by Karl
Thomson Group of Hong Kong. As part of these arrangements Aminex will
reduce its beneficial shareholding in APEL to 12.5%. Aminex's 12.5% share
of the exploration costs for APEL's 80% interest in WEEM will now be
carried through to first commercial production, free of any financial
commitment. This equates to a carried interest of 10% in the WEEM
concession.
The WEEM Production Sharing Agreement calls for three exploration wells to be
drilled in the initial three year period. The concession has been formally
approved by President Mubarak of Egypt and the initial period will commence as
soon as formal signing has been completed with the Egyptian Minister of Energy,
expected to be in the near future.
The WEEM licence covers 1,328 sq. kilometres and lies in the southern portion of
the well-established Gulf of Suez petroleum basin. Five producing fields are
located on the adjacent block to the south-east, operated by Lukoil Overseas and
currently producing approximately 12,000 barrels per day in aggregate. Oil and
gas pipelines with surplus capacity are situated close to WEEM.
Commenting on the announcement Aminex Chief Executive Brian Hall said: "We are
very pleased to welcome Groundstar as a partner in the WEEM concession. The
arrangements with our fellow founding shareholders in APEL leave Aminex with a
carried interest in a highly prospective area for exploration without financial
exposure to primary exploration risk. There is existing 3D seismic over the
WEEM concession and drilling is anticipated to commence in 2007."
Further information please contact
Aminex PLC Brian Hall, Chief Executive 020 7240 1600
Bridgewell Ltd. Andrew Matharu 020 7003 3000
Davy Fergal Meegan Dublin 01-614 8817
Pelham PR Alisdair Haythornthwaite 020 7743 6676
This information is provided by RNS
The company news service from the London Stock Exchange