Aminex reports $2.9m loss for 2009

EXPLORATION COMPANY Aminex has reported a $2.9 million loss for last year, narrowing its losses despite lower revenues due to falling energy prices.

Last year, the company reported a pre-tax loss of $9.7 million. The firm said revenues for the year were down to $7.8 million, a 23 per cent fall on the $10.2 million reported in 2008. The company blamed the fall on a combination of higher production and lower average oil and gas prices.

Average oil prices were down to $55.25 compared with $86.79 a year earlier. Gas prices, meanwhile, were $3.91, less than half of 2008’s average of $7.75.

Aminex’s gas production rose 56 per cent over the year to 489,000 million cubic feet (mcf)from 314,000 mcf recorded in 2008 as a full year’s production from the Sunny Ernst-2 well at Alta Loma in Texas. The field contributed 75 per cent of gas production, while the South Weslaco field produced 24 per cent.

Oil production was also boosted by Sunny Ernst-2, which added 17 per cent to 42,000 barrels of oil from 36,000 barrels a year earlier. Almost half of oil production came from the Somerset field, with 41 per cent from Alta Loma field.

In a drilling update issued yesterday by Tullow, Aminex’s partner in the Lindi and Mtwara blocks in the Rumuva Basin in southern Tanzania, it was revealed that the Likonde-1 well in the the Lindi Block encountered evidence of residual oil and gas.

“The Likonde-1 well potentially opens up a new oil play in Tanzania and a follow-up well is planned,” said Aminex chairman Brian Hall.

“Also in Tanzania, the results of an independent evaluation of the Kiliwani North discovery and neighbouring prospects at Nyuni, coupled with the likelihood of an imminent go-ahead for expansion of the gas handling plant at Songo-Songo Island, mean that we can now plan for commercial gas development.”

The company said it was making good progress in North Korea and had secured a partner for the next stage.