Aminex to focus on US due to 'difficult markets'

Listed oil and gas exploration company Aminex has reported a pretax loss of $9.7 million for 2008 due to writedowns associated with its exploration activities.

Aminex, which produces oil and gas in the US and has exploration activities in Tanzania, Kenya, North Korea, and Egypt also said it was reacting to “difficult markets” and “tough times” by focusing on US production.

“Recognising that capital markets are not at the moment readily available to support frontier exploration, we are seeking to maximise returns from the US,” the company said in a statement.

Successful drilling at its Sunny Ernst 2 well in Texas had tested at

six million of standard cubic feet of gas per day and Aminex said revenues from this site “should be sufficient on their own” to cover costs in 2009, allowing for no significant collapse in commodity prices.

Gas production from its US operations were 123 per cent higher last year than in 2007, largely due to the Sunny Ernst well coming on stream. Aminex has a 37.5 per cent stake in this well.

In the year to the end of December, Dublin and London-listed Aminex said revenue rose 9 per cent to $10.2 billion, of which 54 per cent was from oil and gas sales and the remainder from its oilfield services division.

Last year Aminex disposed of its interest in the Manja licence in Madagascar, leading to a non-cash charge of $3.38 million.

With this country in a “state of near civil war”, Aminex said its decision to exit was well-timed.

At 12.55pm shares in Aminex were unchanged at 71 cent in Dublin.