Aminex narrows losses in 2014 as it sells off US assets

Oil and gas company Aminex narrowed its losses last year as it sold off its US operations, and said it expected to "reap rewards" in 2015 of a decade of exploration in Tanzania.

In its preliminary results for 2014, the firm reported a loss of $7.01 million in 2014 compared with $17.28 million a year earlier. The loss from continuing operations fell to almost $5.9 million, from $6.9 million the previous year.

The London and Dublin listed firm raised $15 million in equity during the year, and had provisionally agreed the sale of its Moldova interest.

Aminex also highlighted the completion of a regional gas pipeline in Tanzania that would provide a commercialisation route for gas from Kiliwani North, and the ongoing appraisal of the Ntorya discovery.

The company pledged to keep a tight control on costs, noting the difficult last quarter of 2014 when crude prices fell below expectations. However, chairman Brian Hall said Aminex had not been badly affected by the new oil price environment, beyond the effects of negative sentiment in the markets, as it had divested its remaining US assets and it was "highly unlikely" to change the prices it expects to obtain for its Tanzanian gas.

Aminex also agreed the sale of part of its interest in the Kiliwani North gas field during the year, and that has since been completed. The company will use the proceeds to retire some of its corporate debt.

Revenue fell to $444,000, from $724,000 restated revenue a year earlier. Gross profit was $32,000, compared with $208,000 in 2013.

Chief executive Jay Bhattacherjee said it was a "very promising time for the company".

“Going forward the company will maintain strict cost control measures while opportunistically using the downturn in commodity prices to expand its business with production and development led opportunities in Africa,” he said.