Aminex PLC has signed a Participation Agreement with Upstream Petroleum Services Limited (“UPSL”) in respect of Blocks L9 and L10 offshore Kenya. UPSL is a party to a Technical Evaluation Agreement with the Kenyan Government for Blocks L9 and L10, pursuant to which it has, in February 2006, acquired new seismic and will in the next 3 months acquire additional seismic and geochemical data. The cost of the preliminary seismic programmes and geochemical surveys will be approximately $2 million and Aminex will participate with a 25% interest, financed partly by a cash payment of $300,000 and partly through the issue to UPSL of new Aminex shares to a value of $250,000.
The Technical Evaluation Agreement covers approximately 5,000 square kilometres and lies in relatively shallow water close to potential gas markets in Mombassa.
The Participation Agreement will provide Aminex and partners with exclusive access to the data until 30 September 2006 with a view to negotiating a full Production Sharing Contract with the Kenyan Government during 2006. This will be conditional upon first obtaining satisfactory results from a preliminary seismic acquisition programme, anticipated in the near future. Aminex’s investment may become repayable if a Production Sharing Contract is not ultimately granted.