LONDON (Alliance News) - Anglo African Oil & Gas PLC is targeting oil production from a well on the Tilapia field in April, the firm said Thursday.
Anglo African is targeting the TLP-103C well at Tilapia, located in the Republic of the Congo.
The well will produce from upper reservoirs by mixing production from the R2 and Mengo targets. Anglo African expects initial flow rates over 1,500 barrels of oil a day for between 14 to 18 months.
At that rate, the company will generate USD1 million of net free cash flow a month, and the breakeven price will fall to USD20 per barrel of oil.
Anglo African can fund this through its own resources. Had it decided to produce from the Djeno target, the firm would have had to spend cash to improve infrastructure at Tilapia.
Executive Chair David Sefton said: "We are excited by this funded plan for TLP-103C and are working hard to bring the well into production as soon as possible. The development schedule is predicated on the availability of Schlumberger's fracking equipment which we have been informed will be available in the beginning of April.
"Bringing TLP-103C into production is the key to realising the value we believe has been unlocked by the very successful results from the well," Sefton continued.
"With production rates of up to 1,500 barrels of oil per day expected, TLP-103C will provide considerable cashflow for the Company of approximately USD1 million net per month. The board is focused on building shareholder value and bringing TLP-103C into production is the next step in what has been a very successful programme so far."
Shares were up 3.9% on Wednesday at a price of 10.70 pence each.
