Aminex losses fall after new gas field generates revenue
Losses at Irish exploration firm Aminex fell to $2.5m(€2.3m) last year as the company reaped its first rewards from production at its Killiwani gas fields facility in Tanzania.
A share placing during 2016 had raised just under $25m, according to the group's preliminary results for the year. Omani conglomerate Zubair Corporation also became and investor over the course of the year, taking a 29.9pc stake.
Aminex also said it had "substantially" reduced its debt down to $4.9m and added that it now possesses a cash balance of $19.5m. Revenues from ongoing operations came in at $4.9m, up significantly from the $300,00 recorded in 2015.
The group's total investment in exploration and evaluation stood at $84.6m at the end of the year, which was up $5m from a year previously due to the exploration of five new sites.
Aminex, which is chaired by Brian Hall, said it was confident it could continue as a going concern for the next year and that it could dispose of assets to generate income if necessary.
"2016 was a transformative year, with Aminex achieving first gas production from its Killiwani North field," said Aminex CEO Jay Bhattacherjee.
"The company is now looking forward to developing the resources in the onshore Ruvuma Basin, while gas revenues assist with the early repayment of corporate debt.
"We appreciate the continued trust that shareholders have put in management."
The company said 2016 had been a landmark year in Tanzania, with the Kiliwani well now connected to the country's national pipeline system.
Mr Hall added that Aminex had been working in Tanzania for a long time and "we have never lost our conviction that there is a major hydrocarbons play to be exploited".