Aminex Share Discussion Threads

[cashandcard] 03/9/2015 10:58

Folks, anyone know whom the other participants are in WEEM-2 block, Egypt?

APEL control 80% - who controls the balance?


Cash

[kevjones2] 03/9/2015 10:04

Edgar, I wasn't trying to trick you! I had a look at your Twitter account as suggested by you below:

"But Ritson on one of the two interviews he gave was saying something different to the AEX document, I thought.

Cant check now but they are all on my twitter page @edgartwo2"

Interesting stuff.

Regarding re-tweeting, apparently the Twitterati glitterati frown upon people doing that as it isn't 'cool'. Personally, I couldn't care less. If something is worth saying, it's probably worth saying twice!

[bunbooster2] 03/9/2015 09:32

I have no idea what you lot are on about but I strongly suspect it is off topic. Grow up!

[edgar222] 02/9/2015 21:06

Don't mean to !

Give me a date and time and I will look !!


EDIT : Its a trick isn't it. You cant retweet your own tweets.

[kevjones2] 02/9/2015 20:08

Edgar222, you retweet your own tweets!!

[edgar222] 02/9/2015 17:07

Warbaby

I agree with what you say on the document.

But Ritson on one of the two interviews he gave was saying something different to the AEX document, I thought.

Cant check now but they are all on my twitter page @edgartwo2

Will have another listen when I can

[warbaby43] 02/9/2015 16:55

Yeah, blackgold, good point about the well planning/funding interplay especially when the Gemini funding model means they will be a de facto participant.

[warbaby43] 02/9/2015 16:49

edgar222, this is the relevant chunk from the H1 Report:

"Several well locations have been identified from the new mapping, including the two key Ntorya-2 and Ntorya-3 appraisal wells and the Likonde-2 and Namisange-1 exploration wells. Aminex has contracted North Sea Well Engineering Ltd. ("Norwell") to manage the Ntorya-2 and Ntorya-3 well planning, which is currently ongoing. Following completion of the LR Senergy report, Aminex has identified a target close to the existing Ntorya-1 discovery which was assessed as a potential side-track well to the Ntorya-1 well. After review with Norwell, the location will now be drilled as a vertical well from a different surface location so as to reduce drilling risk. Ntorya-2, located just west and up-dip of Ntorya-1, is expected to be spudded in Q1 2016. The newly-designated Ntorya-3 well will be drilled in the main channel. Both the Ntorya-2 and Ntorya-3 wells are expected to test additional exploration targets in addition to appraising the priority Cretaceous gas sand discovery. The Company continues to work on financing solutions for its drilling programme in Ruvuma and the new data and well planning are assisting this process."

So to take your point - "They say that they regard N2 as appraisal and after that one the Ntorya discovery can be hooked up to the pipeline. Whereas N3 and the others are exploration drills." It would seem that both are regarded as appraisal wells and both are regarded as explo wells (testing the tertiary?), no doubt to be able to count towards the four explo well licence requirement by Dec 2016.

With regard to production potential, worth bearing in mind what JB said to Mr Smoothie about N-3 when it was N-1S "a cheaper option to go in and get gas on stream a lot quicker." As JB also made clear to Miss Blondie, N-1S/N-3 is targeted at the same cretaceous play as the N-1 discovery so I would guess that N-3 must have a significantly higher CoS than N-2.

With regard to hook up, I have long believed that TPDC will make no decision until it becomes clear just what the production potential is and if Ntorya 2&3 do join N-1 as successes then their scale will merit their own processing facilities as well as a stripping plant to handle the condensate. I'm equally sure that any such facilities will have planned flexibility to enable expansion if Namisange and Sudi also come good.

And now, I too, will have a lie down.

[blackgold00] 02/9/2015 14:12

warbaby, "and it was said 3 months ago in the RNS of 4th June which also stated that neither was the funding conditional on a start of production at KN-1."

yes and thats also true, but what i think is vital in securing new funding is the completion of the well engineering for the Ntorya-2 and Ntorya-3 appraisal wells which are in there final stages.

from half year results
"In June the Company completed an equity fundraising, securing $2.45 million net of transaction expenses".
"This fundraising will allow the Company to progress well engineering for the Ntorya-2 and Ntorya-3 appraisal wells prior to the availability of production revenues from Kiliwani North".

"With the Company financed through to first Tanzanian production and in the final stages of planning for a new well to appraise the Ntorya-1 discovery,
" As previously reported, the Company is in discussions with a major financial institution to arrange longer term funding for its Tanzanian work programme"

"Both the Ntorya-2 and Ntorya-3 wells are expected to test additional exploration targets in addition to appraising the priority Cretaceous gas sand discovery. The Company continues to work on financing solutions for its drilling programme in Ruvuma and the new data and well planning are assisting this process".

and no doubt Mr. Tom Mackay who's first anniversary is today, is being instrumental in those discussions



"The Board of Aminex PLC ('Aminex or the 'Company') is pleased to announce the appointment of Mr. Tom Mackay as a Non-Executive Director of the Company with immediate effect. Mr. Mackay is a Geologist/Petroleum Engineer with a successful career in petroleum operations, management and financing. With a BSc (Hons) in Geology from Durham University, Mr. Mackay began his career as a Petroleum Engineer with Shell and subsequently moved on to Clyde Petroleum PLC where he became Manager at Existing Ventures until it was acquired by Gulf Canada in 1997. Since then he has been an active petroleum consultant on acquisition and new venture projects with a wide range of clients, including Petrofac and Enquest. For a period he served as CEO of a private E&P company, Oil Quest, and from 2002-2007 he held senior management positions at Stratic Energy Corporation. He is currently a Partner in Gemini Oil & Gas Advisors LLP which acts as technical and financial advisor to the Gemini Oil & Gas Funds, investing in global appraisal and development projects".

[edgar222] 02/9/2015 13:55

If the scheme that I am guessing at above is correct then AEX can self fund the further drills. So yes, more expensive but much less dilutive.

[greyingsurfer] 02/9/2015 13:52

If this is the way management are thinking (focus on income) then I applaud it

While I'd certainly agree that an emphasis on generating cash flow is essential (and I'm sure the BoD are well aware :-)), WB's point about marginal costs is important. A very large proportion of well costs where they are are mobilisation costs. Drilling 2 wells may well cost less than 50% more than drilling one. True, mobilisation costs will probably not be as high for N2 (or in turn for N3) as they were for N1, but the cost savings are large and the potential rewards high. If they need additional funding, possibly by a placing and/or offer to allow that I'd be happy to take part - my only real regret about participating in the last, poorly taken up offer, is that I only took around 10x my basic entitlement as excess.

Peter

[warbaby43] 02/9/2015 13:23

Once again, worth remembering that last year Swala was stripped of a licence for non-performance.

[wantmorethan24p] 02/9/2015 13:22

CHECK OUT BOWLEVEN

[warbaby43] 02/9/2015 13:02

"Would love there to be a Gemini deal in there too and a rig booking for N2!"

It would still seem to make little economic sense to drill just one well especially when the market for rigs appears to be so soft and even more so when not only are N-2 and N-3 so close (no more than 4/5km) but that there is also JB's apparently large inventory of equipment lying at N-1 waiting to be used.

"So all positive news strands that are awaiting the GSA (yes I know it was said that financial institutions were not awaiting it but whatever!)."

Very true, edgar222, and it was said 3 months ago in the RNS of 4th June which also stated that neither was the funding conditional on a start of production at KN-1.

Of course this time three years ago saw Detmer the Delusional's mythical loan of $15m which drifted into the ether, along with our Stuard. Let's just hope the Gemini job isn't similarly apparitional.

Incidentally, if a two well drill required a Placing and Open Offer to fund the balance not covered by Gemini or A N Other, I wonder who might be up for it.

[edgar222] 02/9/2015 12:14

It may well be an RNS with the GSA confirmed and a date for gas being pumped as the two are now so close together.

Would love there to be a Gemini deal in there too and a rig booking for N2!

The Solo purchase of the second tranche might be there too and that means confirmation of 3.2m further debt paydown.

Gemini might mean the debt is completely dealt with.

So all positive news strands that are awaiting the GSA (yes I know it was said that financial institutions were not awaiting it but whatever!).

Given that the delay has been so long I would hope for an immediate (or very quick) newsflow on all these other issues.

Which means that I am not planning to sell on the GSA spike. I am going to await the next phase being confirmed. That would mean that Aminex is a debt free company with a solid income and a market cap of 40m (at these levels) that has booked reserves and is targeting 1-2TCF on the next drill (or two) and 2-3 TCF on the next drill or four.

Need another lie down.

[greyingsurfer] 02/9/2015 11:38

When the GSA is signed will we just be notified of the 'fait accompli' ... or will we get pre-notification of its imminent (wash your mouth out LFD) execution?

How much more pre notification of "imminence" do you want? When it's signed it will be signed, and we'll be told.

Peter

[lfdkmp] 02/9/2015 10:52

When the GSA is signed will we just be notified of the 'fait accompli' ... or will we get pre-notification of its imminent (wash your mouth out LFD) execution?

[blackgold00] 02/9/2015 10:45

from Wentworth's presentation, this bit is for ngms.

("Government is responsible for transportation and processing costs")

"Gas Sales Agreement (GSA) executed
– ~16 year term Agreement signed in September 2014
– Net back price of US$3.00/MMBtu for discovered gas, non-linked to Brent
– Government is responsible for transportation and processing costs
– Payment guarantee in place"

[edgar222] 02/9/2015 09:47

Not had time to read the Wentworth presentation slowly, just skimmed.

But they seem very bullish about demand for gas (not surprised) and also the state of readiness of the rest of the infrastructure and new power plants.

PS. If Lasthrow's honeymoon pushes AEX to 32p I will take you all away on holiday myself !

[blackgold00] 02/9/2015 09:36

yes last throw have a lovely honeymoon. i think my wife and me are due for another one as well, maybe next year with a little bit of luck.

[gerryjames] 02/9/2015 09:10

Yes thank-you BG.

Please don't let her name be Daisy...what's the odds?