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Anglo Afri O&g Share Chat (AAOG)



Share Price: 10.75Bid: 10.60Ask: 10.90Change: -0.10 (-0.92%)Faller - Anglo Afri O&g
Spread: 0.30Spread as %: 2.83%Open: 10.80High: 10.80Low: 10.75Yesterday’s Close: 10.85


Share Discussion for Anglo Afri O&g




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gmcc
Posts: 3,579
Opinion:No Opinion
Price:11.30
RE: ROC and hard place - SNPC
16 Apr '19
Hi Ralph69 Thanks fair enough actually no clue on these sidetrack technical matters that is why I asked the question, thought they could utilize TLP103 wellbore already completed to depth 2683 meters & target top Djeno zone - avoid new drill - apparently not !

RNS “Results from Djeno
Anglo African Oil & Gas plc, an independent oil and gas developer, is pleased to report that the TLP-103C well ('the Well') at its Tilapia licence in the Republic of the Congo has intersected the targeted Djeno horizon and that hydrocarbons were encountered. Wireline logging confirms the presence of a 12 metre oil column in the Djeno proving a functioning reservoir in this formation in the Tilapia permit area. This discovery brings the combined total of oil encountered by the Well to an aggregate of 56 metres across the identified horizons.

TD of 2,683 metres was reached at 10h00 on Saturday 26 January and over the course of the weekend the Company ran Schlumberger wireline logs. Having completed logging the Company commissioned a CPI to calculate and qualify the results. This CPI was completed by Schlumberger on Tuesday 29 January.

The results of the CPI confirm TLP-103C has encountered a 12 metre oil column with a further 4 metre transition zone from 2,396m to 2,411m in a dolomitic interval with a high content of shale. The interval is of Neocomien age.
Furthermore, there are several smaller potentially oil-bearing intervals which have been difficult to precisely identify due to a mud build up on the calliper. The data gathered from the Well will, subject to funding, enable the Company to optimise the location of planned well TLP-104 in order to produce from the Djeno reservoir at Optimal levels. “

AAOG do seem excited about oil flowing from Djeno !

DS email remark “It is one potential outcome from the oil coming to surface – the technical team are reworking the production plan based on this data. Clearly there are positive economics relating to bringing on the Djeno earlier, but we are still working this through to get to the conclusion. It is also relevant that the SBL fracking equipment needed for the Mengo is still in Gabon (delays in availability are a normal if annoying fact of life in the oil industry). ‘

Obviously, CPR / Licence extension terms /SNPC outcomes might also influence future production plan decisions

Anyway trust management will make the right call probably best to let them get on with it , my AAOG shares safely locked away .
 
woody2002
Posts: 3,576
Premium Chat Member
Opinion:No Opinion
Price:11.40
RE: ROC and hard place - SNPC
16 Apr '19
Agreed Ralph, i think with current cash etc we can operate comfortably, SNPC payments etc. Sidetracking Djeno would likely result in a fund raise. We dont want another dilution.
TIPTOP
Posts: 11,416
Opinion:Strong Buy
Price:11.40
RE: ROC and hard place - SNPC
15 Apr '19
It really depends how the well was plugged/with what... and if the well could be easily recompleted. DS is not a professional in oil tech so we need to wait for the official decision. The point being that the Djeno has great flow rates, flows naturally without stimulation and most importantly produce for 5 years or more at full capacity, these are mouthwatering statistics worth considering if its sensible and possible.
Ralph69
Posts: 256
Opinion:No Opinion
Price:11.40
RE: ROC and hard place - SNPC
15 Apr '19
Side track will cost a lot more you are mobilising whole rig and crew and day rates are significantly higher as well as much longer time. We are only looking to frack a small zone so should be over and done with on a few days.
gmcc
Posts: 3,579
Opinion:No Opinion
Price:11.40
RE: ROC and hard place - SNPC
15 Apr '19
What if Djeno sidetracking costs approx. the same as r1r2 and Mengo fracking but produces in same timeframe two or three times the Bopd ? Worth consideration to look at options . ( Fracking kit is still in Gabon )
Sardypaul
Posts: 2,408
Premium Chat Member
Opinion:No Opinion
Price:11.40
RE: ROC and hard place - SNPC
15 Apr '19
100% agree with Ralph and shrewd , only way to go licence first production second Djeno drilled from profits from r1r2 and Mengo
TIPTOP
Posts: 11,416
Opinion:Strong Buy
Price:11.40
RE: ROC and hard place - SNPC
15 Apr '19
Both JB and DS are no fools. JB is a man who likes to tick boxes, so you can be sure everything will be in black and white before we move. James has extensive experience of working with African ministries while developing many assets for a wealth of companies. Hes no amateur and rest assured he will be doing everything by the book in the correct order.You can also be confident he will be finding the most profitable way of exploiting Tilapia for everyone involved, including SNPC. Although I have to say I still think we will be taking a larger percentage of Tilapia from SNPC and JB has been applying clever pressure by contracting them to regular payments. We know they cant afford to pay so if he plays his cards right we could pick up a greater percentage, which would have huge implications for AAOG going forward.

Lots of excitement to come I'm sure !!!
ShrewdDude67
Posts: 1,084
Opinion:No Opinion
Price:11.40
RE: ROC and hard place - SNPC
15 Apr '19
Before spending any more money, DS should wait for license confirmation first. Without the license we have nothing.
Ralph69
Posts: 256
Opinion:Hold
Price:11.40
RE: ROC and hard place - SNPC
15 Apr '19
Going after djeno by sidetracking 103 would in my view be a disaster. Production delayed, another fundraise at low price to get rig. They need to get production up and running, cash coming in and get share of field and new licence sorted before going after djeno given the cost.
Morningsun
Posts: 714
Opinion:No Opinion
Price:11.40
RE: ROC and hard place - SNPC
15 Apr '19
Thanks Tiburn. I guess that was an attempt to answer my question on SNPC.
MS
Tiburn
Posts: 1,256
Opinion:No Opinion
Price:11.60
ROC and hard place - SNPC
15 Apr '19
https://atlas.media.mit.edu/en/profile/country/cog/

congo oil is number 1 export at 44% of all revenues

but debt is 125% of GGP in 2017, doubling since 2012

https://countryeconomy.com/national-debt/congo

They need to produce more oil but cant pay for their share of the production well increase, defaulting to free carry on the other fields and 15% retained.

Any money that does come to SNPC is out the door rapidly to pay for a large proportion of the country needs, they cant say no to Govt and invest in more wells for a better revenue share once in production, they must spend as they go - AAOG is in exactly the same position as previous producers and should move towards the max 85% retained revenue over time due to this dynamic, pay back of well costs by 100% retained for the period of well development.




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