Aminex reports $2.49m loss

Oil and gas firm Aminex widened pre-tax losses in the first six months of 2010, and production suffered a temporary fall.

The company saw its loss increase from $1.15 million (€906,000) in the first half of 2009 to $2.49 million (€1.96 million) in the period ending June 30th 2010.

It recorded revenue of $2.6 million for the first six months of 2010, a 26 per cent decline on the same period a year earlier. Some $1.85 million of this figure was due to its oil and gas revenues and $750,000 in oilfield services and supplies revenues.

Aminex said oil production fell to 16,000 barrels of oil (bbl) compared to 24,000 bbl in the same period of 2009, while gas production fell to 133,000 Mcf from 302,000 mcf.

The company said the decline was due to an anticipated fall-off in production from its operations at a well in its Alta Loma field in Texas ahead of partner approval to recomplete the well.

The average oil price rose by 63 per cent to $74.48 per bbl from US$45.61, while gas prices also rose, increasing to $5.05 per Mcf from $4.01, up 26 per cent on the comparative period.

Aminex has a number of operations in Tanzania, the US, Korea and Egypt. The company said the resolution of regulatory issues at its gas plant in the Kiliwani North gas field in Tanzania would open the way to commercialisation, and outstanding issues between the Tanzanian government regulator and the regional pipeline operator that were holding up the expansion of a gas plant at Songo-Songo Island, have also been resolved.

Chairman Brian Hall said Tanzania is increasingly becoming a focus of industry interest.

"Aminex, an early entrant, has already drilled the most significant exploration discovery in the country in recent history, Kiliwani North, and intends to continue exploring and developing its Tanzanian assets in a very positive manner," he said.

"The recently-drilled first well to test a deep Wilcox prospect in our Shoats Creek property, Louisiana, based on new 3D seismic data, is potentially a major step forward in our US activities. A test result will be available shortly."

Shares in Aminex were flat on the Dublin market this afternoon, trading at 12 cent.