Aminex to Begin Preliminary Work at Ruvuma License This Year

Aminex will continue its work on the Nyuni license, the precise scope of which will depend upon the final results of Nyuni-1. As well as Nyuni, Aminex also holds the Ruvuma onshore license in the south of Tanzania, adjacent to gas discoveries in neighboring Mozambique. Aminex expects to commence preliminary exploration of Ruvuma during the current year. Its exploration team continues to identify other areas of interest in Tanzania which are unlicensed at present.

The Group is in the process of assembling a small group of industry partners to undertake initial joint studies. There is a strong and growing demand for gas as well as oil in East Africa, so Aminex views its future there with optimism.

During 2003 Aminex assembled a three-partner group which has now drilled the Nyuni-1 exploration well offshore Tanzania. Several other prospects have already been identified over the Nyuni license area. The well, which reached a total depth of 3,895 meters in the Upper Jurassic, has drilled through a 1,100 meter Lower Cretaceous sequence, the potential reservoir, and is currently under limited test. The well has already established the presence of hydrocarbons in the area.

Aminex is the first company to have drilled an exploration well offshore East Africa for many years. However, the area is rapidly becoming a focus of renewed interest as larger companies negotiate extensive acreage holdings in Tanzania itself and in neighboring offshore Kenya. Thanks to two existing gas discoveries, Songo Songo and Mnazi Bay, made some years back, Tanzania has generally been considered as an area of gas rather than oil potential. From the outset, however, Aminex has taken the view that offshore Tanzania offers great scope for the discovery of oil as well as gas and has approached the Nyuni project with this in mind. Subsequent regional oil sampling and geochemical analysis carried out by Aminex, allied to the presence of oil shows from cuttings during the drilling of Nyuni-1 itself, indicates the presence of oil over the region originating from a Lower Jurassic source rock.