Aminex posts a pre-tax loss of $2.4m for the six months to the end of June - up from $606,000 a year ago.
Revenues rose to $255,000 from $166,000 but total administrative expenses increased to $1.4m from $763,000.
Operating highlights include:
- Gas sales agreement with the Tanzania Petroleum Development Corporation signed in January allowing the group to become an African producer for the first time
- Kiliwani North produced first gas in April, the well is currently producing in line with management expectations and into the new Songo Songo Island Gas Processing plant
- Ruvuma Production Sharing Agreement terms extended by one year with work programme changed to allow the Company to focus on appraisal and development
- Ruvuma appraisal drilling programme is expected to commence in 4Q 2016 Post period, the company received the first payment from TPDC for gas at a set price of $3.00 per mmBTU. The price for gas is set by the US Consumer Price Index and is not linked to any commodity price so importantly is unaffected by current commodity market conditions. And it says cash flow from Kiliwani North-1 will allow the company to support operations and further strengthen the balance sheet.
Chief executive Jay Bhattacherjee said: "The period saw the transition of the company from developer to producer in East Africa and moves us into a position of cash generation and towards a period of sustainable growth. Kiliwani North not only ensures a consistent revenue stream that strengthens the balance sheet but also means we can now focus on our exciting drilling programme in the Ruvuma Basin.
"We are now in a much stronger position than we were at the beginning of the year and I am pleased we now have a new major and supportive shareholder. The board and management are very excited about what lies ahead for the company and look forward to updating shareholders in the second half of the year."
At 9:15am: (LON:AEX) Aminex PLC share price was +0.05p at 1.9p