Aminex desperate to get gas on shore

31st Aug 2011 09:46

Aminex, the oil and gas company with operations in Tanzania and the southern US, saw a 33% increase in production in the first half of 2011 to the equivalent of 50,500 barrels of oil.The company's half-year results also show a pre-tax loss of $896,000, better than the $2.49m loss in the same period last year.The big game for Aminex is its Tanzanian exploration programme, which received a boost early in the year as the company managed to raise $42m in cash to fund further drilling.No one has yet discovered oil off the coast of Tanzania but a significant amount of gas has been found and it is this which is shaping Aminex's plans. It is drilling on Nyuni Island in the Indian Ocean and has been granted a license to to lay a pipeline over Songo-Songo Island. Crucially this will mean the company will to be able to transport gas onto the mainland. As the report states: "... we can now anticipate first Tanzanian production and revenues in a matter of months in 2012."The addition of revenues from Tanzania will be a big development for Aminex which is currently relying on its operations in Louisana and Texas for cash generation.Chairman Brian Hall said: "Positive steps have been made towards commercialisation of the Kiliwani North gas field following the award of a development licence in April, which will lead to first revenues from Aminex's African operations.  US production has increased through a successful recompletion of an existing well at Alta Loma, Texas and further drilling at Shoats Creek, Louisiana is planned."Aminex's shareprice fell just less than 2% in early trading.