RNS Archive

Half-year Report

28 September 2018

Anglo African Oil & Gas plc, an independent oil and gas developer, is pleased to publish its unaudited results for the six months ended 30 June 2018.

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  • Appointment of James Berwick as Chief Executive Officer
  • Three non-executive directors appointed to the board
  • Operational team in-country restructured and strengthened
  • Completion of two successful workovers on TLP-101 and TLP-102
  • Drilling rig contracted, mobilised and operational ahead of schedule
  • Spud of well TLP-103C scheduled for week commencing 8 October
  • Strengthening of the Company's relationships with government and SNPC
  • Expansion of the Tilapia site in preparation for the future development programme
  • Placing raised US$10m (£7.4m) in June.

CHAIRMAN'S LETTER

Dear shareholder,

This report and accounts cover the six months to 30 June 2018, during which, with new management in place, the Company finally moved to deliver on the potential of its Tilapia asset and build up to the drilling of a new well.

Capital and financial planning

As I mentioned in the recent annual report, the entire board and I are very grateful to members for their support in the placing that closed in June 2018. That placing has enabled the Company to move forward with drilling the new well, whether or not its partners contribute to the upfront costs. This well is pivotal to the value of the Company.

In addition to the placing, and as part of our contingency planning, we also took the precautionary step of discussing with interested providers debt facilities which, if agreed, will be structured in a way that gives the Company and its members control over any dilutive effect on the shares. These negotiations took place over the summer and the importance of having done so was evident when the Company faced the situation of having to absorb costs relating to the re-spud of the new well.

This approach to capital planning is an ongoing process. We are very aware of the need to protect the interests of members and are actively developing plans that will enable the Company to grow and develop the Tilapia asset, as well as to acquire new assets, while at the same time ensuring that in doing so there must be accretive value to the shareholders.

New management team

As I mentioned in my letter in the annual report, we now have in place an experienced operational team led by James Berwick supported by a strong board with complementary skills and experience. The new directors have proved to be invaluable in our deliberations over the past nine months.

James Berwick's letter provides an up-to-date review of the operational progress made by the Company since his appointment. I would add that AAOG's team in-country have proved to be dedicated and professional, and we are most grateful to them for their hard work and determined approach to the challenges that we have faced.

I would also like to take this opportunity to introduce two new members of the non-board, executive team. Jeremy Patullo has joined from Chevron to provide further support on the finance side and brings with him a wealth of experience in budgeting and managing capital projects. In addition, David Livingston has joined from Upstream Risk Management and is providing much needed support to James Berwick in managing the operations.

New licence

As I reported in June, the Company's investment in the Tilapia field has been welcomed by the Congolese authorities. We have been told by the authorities that the drilling of TLP-103C, and our interest in other fields in the country, are the significant factors in the granting a new licence for Tilapia, and we expect the process to complete shortly.

Overall strategy

At the moment, the focus remains on drilling what is now designated as TLP-103C. We have also developed plans for the full development of the Tilapia field, with the variations on that plan depending on the results of TLP-103C.

In addition, we have progressed discussions on new asset opportunities which fit with the Company's continued strategy of becoming a lean, profitable oil producer with a focus on the bottom line and a clear and unswerving commitment to the payment of dividends. We look forward to progressing these discussions further.

We look forward to keeping members updated on progress.

 

David Sefton
Executive chairman

27 September 2018

 

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
James Berwick, Chief Executive Officer
 
   
finnCap Ltd (Nominated Adviser and Broker) Tel: +44 20 7220 0500
Christopher Raggett, Giles Rolls, Anthony Adams (Corporate Finance)
Camille Gochez (Corporate Broking)
 
   
St Brides Partners (Financial PR) Tel: +44 20 7236 1177
Frank Buhagiar, Juliet Earl  

 

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

 

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