Oil and gas company Aminex PLC announced that it has converted its stake in Egypt’s West Esh El-Mallahah-2 production sharing contract in Egypt into a royalty structure reported London South East.
This move is meant to reduce the company’s exposure to further development costs. It includes ongoing license costs and repaying its free-carry in full, all prior to receiving its share of production revenues.
Aminex has a 12.5% stake in Aminex Petroleum Egypt Ltd (APEL). In 2006 APEL drilled four exploration wells in its Egyptian concession, but only one well had produced hydrocarbons in commercial quantities.
“The board of Aminex is pleased with the result of today’s reorganisation of its Egyptian interests which provides the best opportunity for the company to achieve revenues from the WEEM-2 concession, with no exposure to further development capital,” said CEO Jay Bhattacherjee.
Aminex also announced in an Oil Voice press release that the company has agreed to sell its shares in APEL to fellow shareholder PetroSino along with its indirect carried interest. This will be for a nominal sum in exchange for a 1% gross over-riding royalty to Aminex from PetroSino.
Consequently, APEL’s name will be changed and Aminex will no longer be represented on the APEL board of directors.