African Oil and Gas

Monday, 24th September 2018 09:21 - by Rajan Dhall

African Oil and Gas investors have been through a rollercoaster of emotions recently. A few weeks ago it had emerged one of the rigs at the Tilapia field in the Republic of the Congo had been damaged and was set to be out of action for a while. This morning in the latest RNS statement it seems that the repairs have been completed ahead of schedule. 

David Sefton the Executive Chairman of AAOG commented, "Following the unwelcome need to pull out of TLP-103 and re-spud, the operations team, the rig contractor and our external consultants have worked tirelessly to get the drilling programme back on track as soon as practicable and to take steps to ensure that there is no repeat of the problem.  The new drilling pad is now complete and relocation has allowed for an improved deviation of the well to target the apex of the Djeno horizon.

On the daily chart, we have been looking pretty bearish, after the gap lower when the rig initially suffered damage from around 6.50p close to the 10p area. and today there is a good chance we could break that barrier. Look out for the falling trendline and the 12p area which is the next mean value area on the way up. After that 13.24p and 15.70p, both look sticky.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.