this is what we gave away !!, page-11

The following is an interesting snippet from Aminex's announcement this evening:

The Nyuni PSA expires this year, being the first PSA in the history of Tanzanian oil and gas exploration to last the full 11 year term. A new PSA, which may include additional acreage, is under negotiation and the Company is confident that this will be satisfactorily concluded.

And then there is this more detailed review of operations:

TANZANIA � Nyuni PSA and Kiliwani North Development

An application for a 25 year Development Licence for the Kiliwani North gas field was submitted to the Tanzanian Government in 2010 and the award of this licence is now thought to be imminent. The gas reserves in the field will be developed via a 3 kilometre tie-in to the Songas Processing Plant on Songo-Songo Island. Processed gas will then be transported through the export pipeline to Dar es Salaam.

Agreements for connection to the facilities and for the processing and transportation of the gas are being negotiated with Songas, the owner of the plant and pipeline. In parallel with this, a memorandum of understanding has been signed with a potential gas buyer and a full gas sales agreement is under negotiation. A second potential gas buyer has signed a Letter of Intent. Preliminary engineering design work is commencing in advance of issuing tenders for the construction, hook-up and commissioning of a pipeline and tie-in facilities for the Kiliwani North field.

The demand for gas in Tanzania is increasing, both for power generation and for industrial use. A new 105 MW power plant is due to be commissioned in early 2012 in Dar es Salaam and plans for other plants are progressing. Expansion of the Songas Processing Plant by the addition of two trains and compression capability is progressing.

In-place gas, categorised as Contingent Resources, for the Kiliwani North field have been evaluated by ISIS Petroleum Consultants (ISIS) are shown in the table below.

Elsewhere in the Nyuni Licence, plans are well advanced for the drilling of the Nyuni-2 exploration well on the Nyuni Prospect. A contract for the Caroil-6 drilling rig was signed recently and material procurement is in progress as well as numerous contracts for the main drilling services. Nyuni-2 will be drilled as a deviated hole from Nyuni Island, with a planned build angle of 31 degrees from vertical to a bottom hole target approximately 1,200 metres to the south-east of Nyuni island. The primary objective of the well is the Neocomian sand reservoir which is the main producing horizon at Aminex�s Kiliwani North field and at the neighbouring Songo-Songo field, while the overlying Aptian-Albian sands constitute a secondary objective. These sands were gas-bearing in the Nyuni-1 well in 2004, according to the wireline log evaluation, but operational difficulties prevented testing of the reservoir at the time. On the basis of the gas shows encountered while drilling and the petrophysical evaluation of the Aptian-Albian sands, ISIS attributes �Contingent In-place Resources� to the Aptian-Albian of the Nyuni Prospect. These, together with the �Prospective Resources� attributed to the Neocomian reservoir sands, are tabulated below.

With the Nyuni Licence approaching final expiry in 2011, and with a number of prospects and leads as yet undrilled or fully evaluated, Aminex is at an advanced stage in negotiating a new PSA with the Tanzanian Government. The new PSA will cover the existing area held under licence with the exception of the Kiliwani North Development Licence area.

Underlining its continuing confidence in the prospectivity of the Nyuni area, Aminex announced in February 2011 that it had reached agreement with Key Petroleum (Key) to farm into its interest in the Nyuni Licence by funding Key�s 20% share of the cost of the Nyuni-2 well to earn a further 15% interest in the licence. This results in Aminex holding a 65% interest in the licence, including the Kiliwani North gas field.

The conclusion of a new PSA for Nyuni will allow for continuing exploration in an area where Aminex has built up a significant knowledge base and already made two gas discoveries. With real progress now being achieved on the commercialisation of Kiliwani North gas and with the potential to identify larger gas reserves with the upcoming drilling of the Nyuni-2 well, Aminex is well placed to build a significant position as a gas producer in Tanzania.

Brilliant timing to throw away 75% of our interest in this asset! Why the hell would Ken want to ditch our best, most prospective asset?!?

And then there is our remaining Tz asset:

TANZANIA � West Songo-Songo

The West Songo-Songo PSA area, located between the Songo-Songo gas field and the coast of Tanzania, shares a petroleum system with the Songo-Songo and Nyuni PSA areas to the east. Two main structural prospects have been identified on the block with further stratigraphic potential. These require additional seismic to define drillable prospects. In 2010, operator Key Petroleum reprocessed the existing seismic on West Songo-Songo and updated its interpretation of the existing prospects and leads. Progress on this PSA continues to be limited, but the resource potential for gas remains high in an area close to the existing production, processing and transportation facilities on Songo-Songo Island. The result of recent work has not fundamentally changed the identification of the main prospects.

Within the Initial Exploration Period of the PSA there is an obligation to drill one well in the first three years.

Aminex holds a 50% interest in this PSA which is operated by Key Petroleum.