Shore Capital called yesterday’s presentation by Aminex (LON:AEX) very encouraging as it remains on track and fully funded to achieve its objectives during a “very exciting period of drilling”.
The company presented to investors in London yesterday following an annual general meeting in Dublin the day before.
The broker is now looking forward to the spudding of the Nyuni-2 well in Tanzania, which is set for early next week, giving the company a risked net asset value (NAV) of 20 pence per share, compared to the stock's current market value of 7.88 pence.
The existing Kiliwani North gas discovery remains on track for commercialization early in 2012. Gas from the discovery is expected to be helpful in closing the existing gaps in energy supply in Tanzania.
“Aminex reports that it remains fully funded to achieve its objectives and, to our minds, yesterday’s presentation was very encouraging,” said analyst Craig Howie.
The well is expected to reach total depth in August. The second well at Ruvuma, Ntorya-1, will start drilling in September/October 2011, targeting both oil and gas. The broker said that the next few months will be a “period of exciting drilling activity in Tanzania”.
Concerning the company’s US operations, Howie noted that Aminex and its partners are receiving premium prices for both oil and gas, while production from recently drilled wells has yet to stabilize at Shoats Creek.
The recompleted Sunny Ernst-2 well at Alta Loma is now producing at pipeline capacity. Earlier this month, Aminex reported that the well was producing 8.1 million cubic feet of gas a day and 345 barrels of condensate, or the equivalent of 1,695 barrels of oil.