tanzania to be the gas hub of east africa, page-10

KEY were only required to pay for 30% of the Kiliwani #1 and Kiliwani North #1 wells to obtain a 20% interest in the Nyuni block. Once that 20% interest was obtained they are only responsible for their share of any further costs. Their share being 20% at the present time.

From Aminex today:

Tanzania

Nyuni (Aminex 50 per cent. interest and operator)

Aminex is finalising preparations to drill the fourth well on the Nyuni concession area. The well, Nyuni-2, will be the second exploration well drilled from Nyuni Island and is expected to be spudded in April 2011. In 2004, the first well, Nyuni-1, encountered oil and gas but was not tested and was suspended for re-entry. In the event that Nyuni-2 is a commercial gas discovery, it is expected that it will be tied into the gas pipeline terminal on Songo-Songo Island, which is 20 km from Nyuni Island. The Company is in final negotiations to contract a drilling rig for the Nyuni-2 well and expects to sign an agreement in the near future. As operator, Aminex has started ordering long-lead items and this process will be continued.

Kiliwani North (Aminex 50 per cent. interest and operator

Aminex is preparing to commercialise the Kiliwani North-1 ("KN-1") discovery on Songo-Songo Island with the expectation of gas production commencing in 2012. In 2008, KN-1 was successfully drilled on the southern tip of Songo-Songo Island and encountered a 60 metre gross column, 18 metres of which were fully production tested, yielding a flow rate of 40 million cubic feet/day (equivalent to 6,700 barrels oil per day). KN-1 is 2.5 km overland from the entry point and treatment plant for the Songo-Songo gas field. The Company is in discussions with the Tanzanian authorities to accelerate first production from Kiliwani North in order to help meet the country's increasing energy demand.

Aminex and its joint venture partners plan to acquire additional 2D seismic over the Fanjove North prospect which is located in the southern half of the Nyuni concession area approximately 7 km from the KN-1 discovery. The seismic will be used to identify another well location within the Nyuni concession area.

Subject to the successful outcome of negotiations, Aminex may increase its increase its Tanzanian exploration and development activity.