Anglo African Oil & Gas PLC Operational Update (4976B)
June 07 2019 - 1:00AM
UK Regulatory
TIDMAAOG
RNS Number : 4976B
Anglo African Oil & Gas PLC
07 June 2019
Anglo African Oil & Gas PLC / Index: AIM / Epic: AAOG /
Sector: Oil & Gas
ANGLO AFRICAN OIL & GAS PLC ('AAOG' or the 'Company')
Update
Anglo African Oil & Gas plc, an independent oil and gas
developer, is pleased to provide the following operational
update.
Competent Persons Report ("CPR")
Since the announcement of 25 April 2019, the Company has been
working on the publication of a CPR covering the Tilapia oil-field
in the Republic of Congo. The primary purpose of the CPR was to
update the Company's reserve base following the successful drilling
of the TLP-103C well which encountered hydrocarbons in every target
zone including the potentially prolific deeper Djeno horizon. The
CPR provider, LR Senergy, has informed the Company that it requires
further data to be able to properly reflect the prospectivity of
the Djeno in any new CPR. Accordingly, the Company has paused the
work with LR Senergy pending the accumulation of such further
data.
However, the Company had in parallel to the CPR process engaged
a specialist technical analysis firm, Nutech, to produce its own
CPI analysis and report on the Djeno. This report is in addition to
the CPI already prepared by Schlumberger and to ensure independent
analysis, Nutech were not provided with the Schlumberger report.
Nutech has now completed its analysis and the Company is very
encouraged by the results it has seen to date which support the
view that the Djeno reservoir at Tilapia is of high quality.
The Company has instructed an independent third party technical
specialist to prepare a summary of the two CPIs and this will be
released by the Company by the end of next week.
Production Plan from TLP-103C
As announced on 29 March 2019, the Company confirmed that high
quality oil had flowed to surface under its own pressure. This oil
along with attendant gas continues to flow to surface under its own
pressure with minimal water content. In light of this welcome
information the Company is considering a revised production plan
for TLP-103C.
Further announcements in this regard will be made in due
course.
Receivables
Further to the announcements of 29 March 2019 and 25 April 2019,
the Company continues to receive regular payments from SNPC as
reimbursement for its share of the costs of TLP-103C. The latest
payment was received on 17 May 2019 for US$716,000. SNPC has
confirmed that it intends to continue making monthly payments and
that the sums paid each month are likely to increase. These sums
are being applied to paying down creditors and for general working
capital purposes.
New Licence for Tilapia
The Company has this week attended meetings with the Government
of Congo to finalise the terms of the PSC and other agreements
relating to the already confirmed new licence over Tilapia. The
award is for a 25 year term and the Company's interest will be not
less than the 56% it currently holds. The Company looks forward to
finalising the terms of the underlying agreements governing the new
licence.
David Sefton, Executive Chairman, commented, "The reports
relating to the Djeno reservoir have been extremely pleasing and
continue to give us great confidence that we will achieve the
Company's primary goal of producing hydrocarbons from the Djeno.
Most importantly, these reports are narrower than the broader
issues considered in a CPR (such as licence terms, capital plans
etc) and focus solely on the technical aspects of the discovery in
the Djeno, and how it can produce in the short term. We look
forward to finalising our operational plan in this regard and
working closely with our partners SNPC and the Congolese Government
on developing the Tilapia licence area."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
**ENDS**
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
Tel: +44 20 7220
finnCap Ltd (Nominated Adviser and Broker) 0500
Christopher Raggett, Giles Rolls (Corporate
Finance)
Camille Gochez (Corporate Broking)
Tel: +44 20 7236
St Brides Partners (Financial PR) 1177
Frank Buhagiar, Juliet Earl
Notes to Editors
Anglo African Oil & Gas (AAOG) is an AIM-listed independent
oil and gas company that owns 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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