Exploration company, Aminex, is to fund an expansion in the Russian Federation through a placing and open offer of new shares to raise £12.8 million.

Some £8.5 million has already been raised through a placing, mainly with

British institutions. The firm plans to raise a further £4.3 million through an open offer to existing shareholders, on the basis of 1 for 10 at 85p per share, the same price as the placing.

Aminex said it will control 35 per cent of Idelloil, a new company formed to exploit up to 15 established oil fields in Tatartstan, one of the largest oil provinces in Russia. The estimated oil in place exceeds 3 billion barrels and estimated recovery is 300 million barrels, according to Aminex.

The other shareholders in Idelloil are Tatneft (with 10 per cent),

Tatnefteprom (40 per cent), Government of Tatarstan (10 per cent) and

Zarubezhneft (5 per cent). Tatneft is one of Russia's major oil production companies. Zarubezhneft, an oil agency of the Federal Government of Russia, is

Aminex's largest shareholders and has representation on the board.

The Russian investors in Idelloil are to provide the new company with the use of oil assets in return for their shareholdings. Aminex will provide the development loans and, as long as these are outstanding, Aminex will control 51

per cent of Idelloil.

Aminex has agreed to participate with Zarubezhneft in the Kharyaga-Usinsk section of the projected Baltic pipeline system, subject to shareholder approval. It will have a net beneficial interest of 7.5 per cent in the 138 km pipeline and will receive tariff income.