Afminex said it now has options to acquire up to a 50% interest in seven oil projects covering over 15,600 sq km in the Kyrgyz Republic.

While operations are currently only at exploration stage, Afminex said encouraging results from a number of wells recently drilled on the Charvak and Ashvaz licence areas has confirmed the early development potential of these permits.

It is planned to bring the Charvak project into commercial production progressively over the first half of 2003.

The projects are located in the Fergana Valley, where the United States Department of Energy and United States Geological Survey (UGS) in 1994 estimated total recoverable oil at 4 billion barrels, of which 1 billion barrels had been discovered at the time.

The first (primary) option commits Afminex to spending US$150,000 on the development and production testing of three shallow oil wells by February/March 2003 on the 744 sq km Charvak project.

Assuming these wells are successfully brought into production, Afminex said it can inject a further US$1.25 million throughout 2003 to continue developing wells and production facilities on the Charvak oilfield to earn its 50% equity.