Aminex to Begin Tanzania Drilling Program in August

Aminex has signed a contract with Dafora Group of Romania for use of an F200 rig to drill two wells with an option for two further wells on the Nyuni license, offshore Tanzania. The rig is being prepared for operations in Romania and for imminent shipping to Tanzania. The first well, Nyuni #1, is due to be spudded in early August this year and the initial drilling program of two wells to test separate structures will continue into early 2004. The drilling program has been significantly redesigned to use a Romanian F200 land rig, drilling the Nyuni and Okuza wells from two small islands in the Nyuni license area. Initially, the drilling program called for the use of the jackup, Atlas, however, it was determined that it would not be cost effective to mobilize the rig East Africa. Estimated cost of the initial two wells at US$10 million, whereas before the cost was estimated at US $15 million.

Aminex participates in the Nyuni license through a production sharing agreement (PSA) with Tanzania Petroleum Development Corporation (TPDC), the state oil and gas company of Tanzania. In December 2002 Aminex signed a farmout agreement with Petrom SA of Romania for 30% of the Nyuni licence. The Nyuni license is adjacent to the Songo Songo gas field which is currently being developed for production along with a major, internationally-funded gas pipeline to Dar es Salaam.

Commenting on the drilling contract, Aminex Chief Executive Brian Hall said: 'Nyuni#1 will be the first new offshore well to be drilled in Tanzania for 12 years. We believe that enormous oil and gas potential exists along the East African margin, which has only been very lightly drilled to date, and that it presents great opportunities. Interest is growing in the area with Shell, Petrobras and Woodside acquiring acreage in this region.'