LONDON (Alliance News) - Anglo African Oil & Gas PLC said Friday it encountered oil from its recently drilled TLP-103C well at the Tilapia licence in the Republic of the Congo.
Shares in Anglo African Oil & Gas were up 9.0% Friday afternoon at 10.74 pence each.
The oil and gas developer said the well targeted several horizons, including Djeno.
After leaving the well to stabilise for 45 days, it produced oil on re-opening. Anglo African Oil & Gas said this confirmed the oil moved to the surface under its own pressure.
"From the inception of Anglo African Oil & Gas, the key aim of the company has been to produce oil from the Djeno. This remains the case today. Confirmation that oil has come to surface from the Djeno reservoir under its own pressure has been a very welcome surprise and confirms the excellent work on the CPI done by Schlumberger," said Executive Chair David Sefton.
Anglo African Oil & Gas also noted that the Societe Nationale des Petroles du Congo - the Congolese national oil company - has agreed to pay the company monthly instalments of USD600,000 for its work on the Tilapia licence.
Before the first payment, starting this month, SNPC owes Anglo African Oil & Gas about USD9.5 million, relating mostly to drilling costs for well TLP-103C.
Anglo African Oil & Gas said SNPC has requested discussions over the possibility of SNPC exchanging a portion of its equity interest in Tilapia for forgiveness of the remaining debt. Until those negotiations are resolved, SNPC will continue to make USD600,000 monthly payments to the company.