14 September 2017
Anglo African Oil & Gas plc, an independent oil and gas developer, today announces an update on activities with regards to the drilling of TLP 103, a new well to be drilled in the producing Tilapia oil field ('Tilapia') in the Republic of the Congo.
Following the announcement made by the Company on 4 August 2017, the Board announces that it is still in negotiations with its preferred contractor to procure the rig to drill TLP 103.
The rig is currently under contract with a major international oil company in close vicinity to Pointe-Noire. This company has completed a full inspection of the rig and requested some technical adjustments which will not be completed until mid-October and, accordingly, it is unlikely that the rig will be operational at its current site before November 2017. It is therefore not anticipated that the rig will be available to AAOG until mid-December at the earliest.
However, AAOG will benefit from having access to a rig that will have passed the standards of an internationally recognized operator, and already been bedded down and completed drilling in country immediately prior to drilling TLP 103.
In the meantime, the operations team continues to focus on optimising production at the TLP 101 well where quotes for replacing the entire flow lines between the well head and the separator have been received and a work order will be issued, with the work being completed by the end of October. Production from this well is currently around 48 bopd. The Company continues to adopt a prudent approach to its cash management and the executive team's incentives remain aligned to an increase in production at Tilapia.
David Sefton, Executive Chairman of AAOG, said, "We remain extremely excited ahead of our drilling programme which will employ a rig satisfying the highest international operational standards. The TLP 103 well has the potential to transform AAOG's production and reserves as it targets multiple potential producing horizons including the Mengo and Djeno sands, which produce prolifically in neighbouring blocks in the basin. Our strategy is unchanged, and management is fully aligned with shareholders in aiming to create transformational production growth and returns with a prudent approach to managing our resources."
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
For further information please visit www.aaog.com or contact:
|Anglo African Oil & Gas plc||Tel: c/o St Brides Partners
+44 20 7236 1177
|David Sefton, Executive Chairman|
|Alex MacDonald, Chief Executive|
|finnCap Ltd (Nominated Adviser and Broker)||Tel: +44 20 7220 0500|
|Christopher Raggett, Giles Rolls, Anthony Adams (Corporate Finance)|
|Emily Morris (Corporate Broking)|
|St Brides Partners (Financial PR)||Tel: +44 20 7236 1177|
|Frank Buhagiar, Olivia Vita|
Notes to Editors
Anglo African Oil & Gas (AAOG) is an AIM-listed independent oil and gas company acquiring a 56% stake in the producing Tilapia oil field in the Republic of the Congo. The Company boasts a low-cost production story in a prolific hydrocarbon region with significant exploration upside, differentiating it substantially from its E&P peers. Additionally, management's remuneration is tied to hitting production milestones, reflecting their strong focus on cost control.
Tilapia has an excellent address, being located close to multi-billion-barrel fields that include the ENI-operated Litchendjili field and the 5,000bopd Minsala Marine field. Tilapia currently produces approximately 48 bopd from two near-surface intervals. It has an undeveloped discovery in the lower Mengo sands with gross contingent resources of 8.1m barrels and a deeper exploration prospect, with gross prospective resources of 58.4m barrels, in the productive Djeno interval from which the adjacent Minsala field produces.