Aminex spuds new well at Shoats Creek in Louisiana

Aminex PLC (LSE: AEX) has spudded the Olympia Minerals-1 (OM-1) well at Shoats Creek, which is the first well in a drilling programme based on interpretation of new 3D seismic data over the property.

The well will be drilled to a total depth of 2,896 metres to test multiple sands in the Cockfield formation in 21 days. The mineral rights to the well location are held by Aminex’s wholly owned Olympia Minerals.

The Aminex-operated Shoats Creek property covers 1,570 acres in Beauregard Parish, Southwest Louisiana, close to the Texas border. Shoats Creek is made up of proved, undeveloped reserves in Frio and Cockfield sands with deep exploration potential in Wilcox sands, all of which have now been extensively remapped and integrated with existing well data using the 3D seismic.

A deep Wilcox well is expected to be drilled in Q3 with a potential farm-in partner with possible further Cockfield/Frio drilling scheduled for the quarter.

Last month, Aminex announced the spudding of the Likonde-1 well at the Ruvuma PSA (production sharing agreement) in southern Tanzania, which is operated by FTSE 100 constituent Tullow Oil (LSE: TLW) and 37.5% owned by Aminex.

The 2010 drilling programme also includes the spudding of the Frio well at Shoats Creek in March, the Sunny Ernst-3 well at Alta Loma, Texas in June as well as a provisional follow-up well at Ruvuma and Nuyuni follow-up well in the final quarterof the year or early 2011.

“We have an active drilling programme planned for 2010 and OM-1 is our second new well start since the beginning of the year...the company has owned the rights to Shoats Creek for several years and predecessors have produced very light oil and high quality gas there since the late 1950s.  However, understanding of complex multiple prospects has now been transformed with benefit of the new 3D seismic data,” said Chairman of Aminex Brian Hall.

Late last year, equity research and corporate finance firm Astaire Securities gave the company a risked exploration value of a further 14 pence per share for a total NAV (net asset value) of 27 pence, excluding the company’s West Songo-Songo hydrocarbon project in Tanzania, where volumetric evaluations are at an earlier stage, and Egypt, which provide additional exploration potential.

The stock has rallied from 9 pence at the end of last year to the current price of 15.25 pence.
Shares added 9% on the news today.

http://www.proactiveinvestors.co.uk/companies/news/13486/aminex-spuds-new-well-at-shoats-creek-in-louisiana-13486.html