Aminex to Begin Drilling in the Suez

Aminex PLC announces progress on its Egyptian exploration license, West esh el Mellaha Block 2 (WEEM).

A new 2000 HP drilling rig (Rig ZJ-46) built in China was successfully delivered to the Gulf of Suez in mid-January. This rig is contracted for 18 months on a shared "call-out" basis for the WEEM group and other operators.

The first well location to be drilled on WEEM will be Malak-1 and containers have now been transported to the drill-site where rigging-up is already 20% complete. Barring unforeseen difficulties, drilling is expected to commence by mid-February.

The Malak-1 well, first of two back-to-back wells in the program, will be drilled to a total depth of 12,500 feet (3,800 meters) and is anticipated to take 30 days. Depending on results, the rig will be available for further drilling, and additional wells may be drilled immediately after completion of the first two wells or at a later date. A further announcement will be made when the Malak-1 has been spudded.

Aminex has a 10% beneficial interest in WEEM, carried through to first commercial production, and partners are First Energy Ltd., Groundstar Resources Ltd., FS International Corporation and Sinopex Ltd.

"Good progress has been made at WEEM which will become the third concurrent drilling campaign in which Aminex is at present directly involved," Aminex Executive Chairman Brian Hall commented. "On the Nyuni-East Songo Songo concession in Tanzania, the Kiliwani-1 well is now close to target. This will be followed by the spudding of the nearby Kiliwani North well to test a separate prospect. In Hidalgo County, Texas the recently-announced gas discovery well in the South Weslaco Field, GU#38, will be tested in the near future and this will be followed by drilling of a further well, GU#39. Additionally, plans are ongoing but not yet finalized for drilling a second well to test a new deep gas prospect in the Alta Loma area, Galveston County, Texas, close to existing Aminex gas production."


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