Anglo African Oil & Gas PLC Secondary Completion of Petro Kouilou (0846N)
August 04 2017 - 1:00AM
UK Regulatory
TIDMAAOG
RNS Number : 0846N
Anglo African Oil & Gas PLC
04 August 2017
Anglo African Oil & Gas PLC / Index: AIM / Epic: AAOG /
Sector: Oil & Gas
ANGLO AFRICAN OIL & GAS plc ('AAOG' or the 'Company')
Completes acquisition of a 56% interest in the producing Tilapia
oilfield
Anglo African Oil & Gas plc, an independent oil and gas
developer, is pleased to announce that "Secondary Completion" of
the acquisition of Petro Kouilou S.A. ('Petro Kouilou' or 'PK') has
now taken place and AAOG is the legal and beneficial owner of 100
per cent of the issued share capital of PK. Petro Kouilou is the
operator and holder of a 56 per cent interest in the producing
Tilapia oilfield ('Tilapia'), located in the Republic of the Congo,
alongside Société Nationale des Pétroles du Congo ('SNPC'), which
holds the remaining 44 per cent.
On 15 March 2017, the Company announced the "Initial Completion"
of a 49 per cent interest in the issued share capital of PK for a
cash consideration of US$2.5 million from Sister Holding S.A.S
("Sister"). At the time, AAOG retained the right to acquire the
balance of the shares in PK via the "Secondary Completion". This
was subject to a number of conditions, all of which have now been
satisfied.
Accordingly, and as further described in paragraph 11.16 of Part
VIII of the Company's Admission Document, Sister has now exercised
Warrants issued to it on Initial Completion. Pursuant to such
exercise, the Company has today issued to Sister 16,354,015
ordinary shares of five pence each in the capital of the Company
("Ordinary Shares") at a price of twenty pence per Ordinary Share.
As a result of such issuance, Sister now holds 23.529 per cent of
the Company's issued share capital.
In anticipation of Secondary Completion, and as announced on 24
July 2017, the Company has already commenced a multi-well programme
focused on unlocking the potential of Tilapia, which in addition to
the currently producing horizon of R1/R2, has an undeveloped
discovery in the Mengo horizon and exploration potential in the
deeper Djeno horizon.
In line with this, the Company is completing the tender process
with respect to drilling a new well, TLP 103, which will target
production from R1/R2 and the Mengo horizon and will appraise the
potential from the Djeno horizon. The rig is due on site by 30
September 2017 and drilling TLP 103 should take approximately 45
days to complete.
David Sefton Executive Chairman of AAOG said, "AAOG now owns 100
per cent of Petro Kouilou and thereby 56 per cent of Tilapia, an
oil field which, being located in a highly prolific hydrocarbon
region, has an excellent location. From the outset, our objective
has been to scale up production and reserves at Tilapia through the
development of existing producing reservoirs and the Mengo, a
proven discovery, and then to assess the prospect of producing from
the potentially high-impact Djeno horizon. We have a defined and
fully funded work programme already underway, which is being
managed with due care with respect both to operational performance
and costs. In carrying out this programme, we will continue to work
closely with our partner SNPC as we look to deliver on our
objectives through the rest of the year."
Voting Rights and Admission
Application has been made for the 16,354,015 Ordinary Shares
issued to Sister (the "Secondary Completion Shares"), which will
rank pari passu with the existing Ordinary Shares, to be admitted
to trading on AIM ('Admission'). It is expected that Admission will
become effective and dealings will commence at 8.00 a.m. on 9
August 2017.
Following Admission, the total issued share capital of the
Company will consist of 69,504,565 Ordinary Shares. The total
number of voting rights in the Company will be 69,504,565 Ordinary
Shares. This number may be used by shareholders as the denominator
for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest
in, the Company under the FCA's Disclosure and Transparency
Rules.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**ENDS**
For further information please visit www.aaog.co 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 Tel: +44 20
and Broker) 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 acquired a 56 per cent 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 38 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 horizon from which the adjacent
Minsala field produces.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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