Aminex PLC
16 February 2006
16 FEBRUARY 2006
AMINEX PLC
UPDATE ON US ACTIVITIES AT SOUTH WESLACO, HIDALGO COUNTY, TEXAS AND SHOATS
CREEK, CALCASIEU PARISH, LOUISIANA
Aminex PLC ("Aminex"), the oil and gas company listed in London and Dublin,
today announces an update on its US activities.
SOUTH WESLACO
At South Weslaco, Hidalgo County, Texas Aminex participated in the drilling of
two wells during 2005 as part of an ongoing multi-well development drilling
programme. The GU-35 and the GU-36 were both drilled to a total depth of 9,000
feet (2,743 metres). In each case logs encountered commercial quantities of gas
in multiple formations. A rig was mobilised in December for completion of both
wells after a long waiting period which was a direct result of the current
shortage of mobile equipment. In mid-December both wells were put on extended
production test and, following a period of consistent flow rates of a combined
3.1 million cubic feet per day with negligible depletion, are now on permanent
production from the lower sands.
There is considerable scope for producing "behind pipe" reserves in these well
bores from additional zones in the future. Aminex's wholly-owned subsidiary
Aminex USA, Inc. has a 25% working interest in these wells and the operator is
Kayler Energy. The next well in the programme is designed to test deeper
formations and will be spudded as soon as a drilling rig comes available.
SHOATS CREEK
Aminex has recently commenced a rehabilitation programme on the Shoats Creek
Field, Calcasieu Parish, Louisiana. In the past, difficult operating conditions
and competing projects made further investment in this field sub-economic but a
recent engineering review and new economic modelling indicate the potential for
significant untapped reserves and produce a strong business case for early
redevelopment. The existing well bores are completed in the Cockfield Sands at
depths of between 8,000 ft and 9,500 ft. (2,438 metres and 2,896 metres).
The Cain-1 well at Shoats Creek has already been re-equipped and recompleted and
is producing at an average rate of 35 barrels per day. New oil tanks and
facilities are currently being installed at the field, old flow lines and
redundant infield equipment are being removed and a second workover is in
progress.
Aminex Chief Executive Brian Hall commented "The drilling of the South Weslaco
wells and the upgrading of the Shoats Creek wells and facilities are part of an
ongoing programme to bring new production onstream in the USA.
Aminex is also continuing to make good progress with its exploration projects in
Africa and the Far East and will provide further information at the appropriate
time."
Further info:
Brian Hall Chief Executive, Aminex +44 (0) 20 7240 1600
Archie Berens Pelham Public Relations +44 (0) 20 7743 6679 or
+44 (0)7802 442486
This information is provided by RNS
The company news service from the London Stock Exchange