(Alliance News) - Anglo African Oil & Gas PLC on Monday, noting "recent speculation" around its financing plans, said it is mulling the sale of a controlling interest in its Republic of Congo operations.
Shares in the oil and gas developer were up 25% at 0.75 pence in London on Monday.
In light of continued non-payment by Societe Nationale des Petroles du Congo, the company said an option open to it is the sale of a controlling interest in wholly-owned subsidiary Anglo African Oil & Gas Congo SAU, which holds a 56% interest in the Tilapia field in the Republic of Congo.
The company said it has received a "number of expressions of interest in this regard", including from Zenith Energy Ltd, and is currently in negotiations. However, there can be neither a guarantee that a deal will be struck nor on what terms, it said.
Earlier in December, Anglo African said SNPC's outstanding debt to it was in excess of USD5.3 million.
Zenith, in its own statement on Monday, confirmed that it is in discussions with Anglo African over the purchase of "certain assets". Shares in Zenith Energy were down 0.3% at 1.919p.
In the meantime, the company said it is managing its creditor position and has sufficient capital to continue as a going concern until at least the beginning of February, assuming receipt of the GBP150,000 owed by Anglo Tunisian Oil & Gas Ltd.
"The company is therefore in negotiations with providers of structured equity finance with a view to providing further working capital for the group. Again, there can be no guarantee that such financing will be available or on what terms," said Anglo African.
By Lucy Heming; lucyheming@alliancenews.com
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