Aminex Finds Gas at South Weslaco Project in Texas

GU-35 and GU-36
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At South Weslaco, Hidalgo County, Texas, Aminex participated in the drilling of two wells during 2005 as part of an ongoing multi-well development drilling program. The GU-35 and the GU-36 were both drilled to a total depth of 9,000 feet (2,743 meters). In each case logs encountered commercial quantities of gas in multiple formations. A rig was mobilised in December for completion of both wells after a long waiting period which was a direct result of the current shortage of mobile equipment. In mid-December both wells were put on extended production test and, following a period of consistent flow rates of a combined 3.1 million cubic feet per day with negligible depletion, are now on permanent production from the lower sands.

There is considerable scope for producing 'behind pipe' reserves in these well bores from additional zones in the future. Aminex's wholly-owned subsidiary Aminex USA, Inc. has a 25% working interest in these wells and the operator is Kayler Energy. The next well in the programme is designed to test deeper formations and will be spudded as soon as a drilling rig comes available.


Aminex has recently commenced a rehabilitation program on the Shoats Creek Field, Calcasieu Parish, Louisiana. In the past, difficult operating conditions and competing projects made further investment in this field sub-economic but a recent engineering review and new economic modelling indicate the potential for significant untapped reserves and produce a strong business case for early redevelopment. The existing well bores are completed in the Cockfield Sands at depths of between 8,000 ft and 9,500 ft. (2,438 meters and 2,896 meters).

The Cain-1 well at Shoats Creek has already been re-equipped and recompleted and is producing at an average rate of 35 barrels per day. New oil tanks and facilities are currently being installed at the field, old flow lines and redundant infield equipment are being removed and a second workover is in progress.

Aminex Chief Executive Brian Hall commented 'The drilling of the South Weslaco wells and the upgrading of the Shoats Creek wells and facilities are part of an ongoing program to bring new production onstream in the USA.


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