LONDON (Alliance News) - Anglo African Oil & Gas PLC on Monday said it has secured a USD663,000 cash payment from Societe Nationale des Petroles du Congo in respect of the total exploration costs at Tilapia licence in the Republic of the Congo.
The company said SNPC owes USD10 million to Anglo African Oil & Gas upon completion of the work in the licence to-date, including the successful drilling of the TLP-103C well.
Anglo African Oil & Gas said it has proposed to SNPC that it would accept the transfer of a substantial portion of SNPC's 44% interest in the licence in satisfaction of the debt.
However, SNPC said it will propose a short-term payment plan to meet the remaining debt of USD9.5 million.
"We are pleased to receive this payment from SNPC although our preference remains to increase the size of our holding in the licence, as we had recently proposed to SNPC," said Anglo African Oil & Gas Executive Chair David Sefton.
"We are working towards bringing TLP-103C into production in April," continued Sefton. "The extra cash that we have now received plus the substantial further funds to come from SNPC, reinforces the cash position of the company and therefore its ability to meet the costs associated with this work."
Anglo African Oil & Gas shares were trading 1.3% higher on Monday at 9.83 pence each.