Aminex Applies for Approval for Fast-Track Development of Nyuni in Tanzania

Aminex PLC has provided the following update on its Tanzanian exploration activities.

During the second period of the Nyuni/East Songo-Songo Production Sharing Agreement, new seismic was acquired and two wells were drilled back-to-back, the second of which, Kiliwani North-1, encountered a 60 meter gross gas column in Lower Cretaceous sands. A 20 meter interval was perforated and was later successfully production-tested.

As announced on June 4, this well test recorded a flow rate of 40 million cubic feet/day which, together with other data recorded and subsequent lab analysis, satisfies Aminex that the Kiliwani North (KN) discovery will result in the development of a commercially viable gas field.

The Nyuni PSA is sub-divided into three work periods, the second of which ended in May 2008. The Joint Venture has now applied to the Government of Tanzania to carve out a separate appraisal area for the KN discovery comprising the discovery block and adjoining blocks, while the remainder of the Nyuni area will be explored during the third period under the PSA terms. Commercialization of KN through the KN-1 well will be fast-tracked as a separate project with the aim of achieving early production. This will be done in parallel with further seismic and exploration drilling over the remaining exploration blocks.

The KN-1 well has now proved that the neighbouring Songo-Songo producing gas field is not a one-off or stand-alone field and that the surrounding prospects are also capable of producing commercial hydrocarbons. Specific reserves for KN are virtually impossible to establish at this stage because the KN structure extends to the north, beyond the range of existing seismic coverage. A programme of field appraisal and delineation will be conducted in parallel with the early commercialisation of the KN-1 discovery.

KN should be treated as one of several adjoining gas accumulations in acreage held by Aminex and partners which should provide the basis for development of a significant new gas business in the region. In addition to KN, the Nyuni JV is planning to explore and evaluate other prospects in the region.

Partners in the Nyuni PSA are: Ndovu Resources Ltd. (Aminex) 40% (operator), RAK Gas Commission (25%), Key Petroleum Ltd. (20%), East African Exploration (10%) and Bounty Oil (5%).

In addition to the Nyuni PSA, Aminex has a 50% interest in the recently awarded Songo-Songo West Production Sharing Agreement in partnership with Key Petroleum Ltd. which acts as Operator. Aminex therefore has interests in acreage which virtually surrounds the Songo-Songo producing gas field.