Aminex deal delays pile pressure on finances

Oil and gas explorer Aminex has yet to secure a long-awaited buyer for its US assets nor a farm-out partner for its major projects in Tanzania.

Oil and gas explorer Aminex has yet to secure a long-awaited buyer for its US assets nor a farm-out partner for its major projects in Tanzania.

The lack of a deal has put pressure on the company's finances, with the refinancing of a short-term loan required soon.

However, one of the the three parties interested in its US exploration, development and producing operations has been given an option to examine the books with the view to making a bid.

The company admitted the process was lasting "a great deal longer" than since-departed Chief Executive Officer Stuard Detmer had anticipated when he announced the potential sale last year.

Aminex said the slow progress was a reflection of "a difficult economic climate for transactions of this kind".

Executive Chairman Brian Hall said that while 2013 had so far been a "complex and challenging period", developments in recent weeks had led him "to believe that we can be optimistic for the company's future".

Likewise, the long-awaited search for a larger partner to take on the bulk of the development of its offshore Ruvuma Basin project has seen more than 30 companies sign confidentiality agreements and review the project data but no further progress.

Aminex admitted that "it has become apparent that the market for relatively early stage farm-outs in frontier areas is less developed than anticipated".

The company acknowledged that securing one of the deals was crucial in order to repay the $8m short term loan it took in January, adding that it was "actively exploring alternatives for funding its core activities and addressing a number of the strategic issues outlined in 2012".

Shares in Aminex were down 27.6% at 2.75p at 10:00 on Monday.

OH

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

A simple way to profit from the next big trend change in the markets
Investment strategy

A simple way to profit from the next big trend change in the markets

Change is coming to the markets as the tech-stock bull market of the 2010s is replaced by a new cycle of rising commodity prices. John Stepek explains…
14 Jan 2021
Forget austerity – governments and central banks have no intention of cutting back
Global Economy

Forget austerity – governments and central banks have no intention of cutting back

Once the pandemic is over will we return to an era of austerity to pay for all the stimulus? Not likely, says John Stepek. The money will continue to …
15 Jan 2021
Here’s why markets have shrugged off the US political turmoil
Investment strategy

Here’s why markets have shrugged off the US political turmoil

Despite all the current political shenanigans in the US, markets couldn’t seem to care less. John Stepek explains why, and what it means for your mone…
7 Jan 2021