Aminex (LON:AEX), the upstream oil and gas company listed on the London and Irish Stock Exchanges, has announced the issue of new shares to fund an expansion of its operations in the US. The company said it had been offered the opportunity to participate in an exploration project in Louisiana, with leads and prospects identified by 3D seismic across 140,000 acres. To fund the expansion, it has issued 17.2 million new shares, worth a total of £1.2 million net (4.2% of issued share capital).
Aminex said the funds raised should enable it to acquire a minority but meaningful share of the new exploration project without the need to reallocate budgeted funds within the Aminex group. You can read further discussion and analysis of this announcement here and here.
Aminex chairman Brian Hall commented:
"This is an exciting opportunity to expand our interests in an area which we now understand well and where we currently operate. In the same general area the Olympia Minerals-1 well (OM-1), which was drilled earlier in the year, encountering multiple thin sand formations, has been subject to a long-term and complex testing procedure. It is now likely to be completed in the Cockfield-2 sands at a depth of around 8,600 feet. The deeper sands in the Cockfield-2 zone have already flowed oil under test and the main part of the Cockfield-2 will be perforated shortly, the two sands then most likely then being commingled for production. Shareholders will be advised as soon as the test is complete".
Aminex is holding its Annual General Meeting at 10.30 am this morning.
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