Aminex is optimistic about the future despite the rise in pre-tax losses from $1.15 million (£806,961) in 1996 to $1.61 million in 1997. Chairman, Mr Brian Hall, said, despite the "hiatus at Kirtayel and delays in initiation of the Komi pipeline project, the group is moving ahead strongly in all its main operating areas".

The Kirtayel Field in Russia would now be producing oil from its first well work-over but for legal action brought by one of the field partners, Tebukneft, against the governments of Komi and the Russian Federation.

The action, said Mr Hall, seeks to invalidate the production licence granted to the group's 55 per cent subsidiary, AmKomi in 1995. Aminex, he added, "deplores this action and has been informed by the Ministry of Natural Resources of Russia that AmKomi holds a valid licence for Kirtayel in all material respects".

However, he said this might take some time to be satisfactorily resolved and, in the meantime, the company would concentrate its resources on other Russian projects".

Turnover rose by 11.3 per cent to $17.4 million last year. At the operating level, profits rose by 34 per cent to $2.4 million. The loss at the pre-tax stage was due to higher administrative expenses. The loss per share was 2.11 cents down from a loss of 2.49 cents in 1996.