StockMarketWire.com - Aminex said annual losses narrowed after it produced more natural gas from its assets in Tanzania.

Output from a key well, however, started to slow in the second half.

Net losses amounted to $2.3m, compared to $2.5m of losses in 2016.

Production from the existing Kiliwani North-1 well rose 29% to 3.6bn cubic feet.

The company said the well experienced a decline in production and that options were being explored to maximise output.

Equipment required to conduct a well work-over had been identified and, pending further work on plant specifications and appropriate government approvals, the company said it intended to re-enter the well.

During the year, Aminex also had drilling success with its Ntorya-2 appraisal well, which firmed up the commercial potential of its Ntorya discovery.

'The success of the Ntorya-2 well and subsequent technical work has contributed to a substantial increase in the contingent resource for Ntorya to 763 BCF,' chief executive Jay Bhattacherjee said.

'The well planning for Chikumbi-1 is at an advanced stage and we are in discussions with the Zubair Corporation for a possible farm-out of part of Aminex's interest in Ruvuma.'

At 1:21pm: [LON:AEX] Aminex PLC share price was -0.2p at 2.8p.

Solo Oil, which owns 7.6% of Kiliwani North-1, said it was encouraged by technical work showing that further reserves could be accessed at the well. 'We look forward to confirmation of the operators plans as they firm up,' it said.



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