While Aminex managed to pare-back its operating loss to $1.76m (£1.11m) in 2011 - a fall of 61 per cent - the year is more likely to remembered for the oil & gas explorer's shift in strategic focus in favour of its East African assets.
To fund its African expansion, Aminex will sell its existing interests in the US this year. To this end, the company hived-off its interest in the Somerset Field in Texas for $701,600 earlier this month. Admittedly, total daily production from the US fields did increase by 62 per cent last year to 130,250 barrels of oil equivalent, but these are mature fields, and Aminex views its Tanzanian assets as the drivers of future growth. Much attention in coming months will focus on additional drilling at the onshore Ntorya-1 well, which has already encountered significant gas deposits.
As part of its expansion, the company has taken the decision to spread exploration risk by adopting working interests of 25 - 30 per cent, and is currently looking to bring farm-in partners to its Nyuni and Ruvuma assets, in which Aminex currently holds 70 and 75 per cent stakes respectively.
Broker Shore Capital believes that Aminex’s Ruvuma interests have been “materially de-risked” by drilling at Ntorya, and has increased its risked NAV estimate from 15p to 20p.
| AMINEX (AEX) | ||||
|---|---|---|---|---|
| ORD PRICE: | 5.53p | MARKET VALUE: | £45.3m | |
| TOUCH: | 5.5-5.55p | 12-MONTH HIGH: | 8.88p | LOW: 2.61p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 12¢ | NET CASH: | $21m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 9.30 | -3.27 | -1.58 | nil |
| 2008 | 10.2 | -9.66 | -3.99 | nil |
| 2009 | 7.85 | -2.90 | -0.92 | nil |
| 2010 | 7.08 | -4.50 | -1.06 | nil |
| 2011 | 9.33 | -0.90 | -0.12 | nil |
| % change | +32 | - | - | - |
£1 = $1.57 | ||||
