STOCKS NEWS EUROPE-Aminex slumps; Tullow abandons well

Shares in Aminex AMNX.I fall as much as 26 percent after partner Tullow Oil TLW.L says it will plug and abandon an exploration well in Tanzania, in which both companies have a 50 percent stake.

Tullow Oil, which is leading the exploration activity in the Ruvuma Basin of southern Tanzania, said drilling had shown “encouraging results” but was abandoned due to high gas influx.

The companies now plan to explore another well in the region and Astaire Securities analyst Craig Howie says the current price of Aminex shares offers a buying opportunity.

“Given the fact that there are other drillable prospects already known to be on the block of equivalent size, we are quite happy with our valuation of Aminex’s total net asset value at 26 pence per share. The Ruvuma project was only counting for around 4 pence a share of that,” he says.

Solo Oil SOLO.L, which has an option to take a 12.5 percent interest in the joint venture, drops by 31 percent. FTSE 100-listed Tullow Oil gains 1.3 percent. To see Aminex's statement please click on [ID:nRSA5838Ja]

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