LONDON (Alliance News) - Anglo African Oil & Gas PLC said Tuesday its TLP-103C well at its Tilapia licence in the Republic of the Congo intersected the targeted Djeno horizon and hydrocarbons "were encountered".
Shares in Anglo African Oil & Gas were up 16% in afternoon trading at 11.00 pence each.
The company said wireline logging confirmed the presence of a 12 metre oil column in the Djeno horizon. The discovery brings the combined total of oil encountered by the well to an aggregate of 56 metres.
"To have encountered hydrocarbons in the Djeno at the first attempt is an excellent outcome and is testament to the quality of the geological model we put in place for Tilapia ahead of commencing drilling operations," said Executive Chair David Sefton.
Anglo African said "several smaller" potentially oil-bearing intervals were encountered but have been "difficult to precisely identify" due to a mud build up on the calliper.
The company said it is confident there is further reservoirs below the current drilled depth. It intends to test a secondary reservoir target with well TLP-104, along the Vandji formation.
Sefton continued: "While this well will produce from the Mengo and R2 rather than the Djeno, we have now encountered oil in all the targeted horizons, with a total combined oil of at least 56 metres, including a combined 44 metres of oil in both the Mengo and R2 and across discovered additional reservoirs. We now plan to bring TLP-103C into production, and thereby increase production and cashflow at Tilapia such that this asset will become cash generative in the very near future."
He added: "Following that the company intends to source a new rig and drill a new well, TLP-104, which will specifically target bringing the Djeno into production, as well as testing the deeper potential reservoirs in the Djeno and the Vandji.
"Encouraged by indications from the government around the licence, the company now intends to plan for a full field development at Tilapia."
