We would love to hear your thoughts about our site and services, please take our survey here.
I'd say the lack of communication from the BOD when SNPC kept missed payments, surely that should be RNS. As you say the funds where a requirement to be able to drill. Instead of that disgusting RNS after the fact with the mountain of blockers. Best laugh is that rig they where trying to get the slot on is from a subsidiary of SNPC and they got blanked there getting the date pushed out to June. Surely that couldn't be because of funds as the owed money from SNPC would more than cover AAOG's 56% of that drill.
Yeah you are correct its a 25 year license, had grabbed that write-up from the earlier RNS. They received a letter about the license offer but all haven't all signed on the dotted line for the PSC as yet with it still in discussions. So i wasn't taking it as a done deal.
I'm under no illusions where the company is at the moment
They may consider themselves entitled to grant the license elsewhere. But the fact is that the pressure that AAOG has been under to raise to cover SNPC share of the costs for the drills to date has impacted on their share price (all with the help of the finance arrangements they done), SNPC have defaulted on their payments a number of times. Spreading out the payments in such a way that could be seen to have AAOG use the payments for their ongoing expenses rather than the more important drill.
Will be interesting to see what comes with it all with the IMF taking a keen interest in their dealings.
If the government use the case of there is no oil in producible quantities at this location for a reason to not award the license, do you think anyone else will buy the license off them? What happens if they do assign the license elsewhere and magically they hit oil as AAOG have shown the way.
You also have the legal aspect in that SNPC is the state oil company which is really defaulting on their payment as a partner, who makes recommendations on the awarding of the license. If they assigns the license elsewhere especially after recommending a 20 year license be awarded to AAOG with No signing bonus and a requirement to drill TLP-103 which they have done :).
1. New 20-year licence
The Congolese state oil company, Société Nationale des Pétroles du Congo ('SNPC'), has proposed and unconditionally recommended the award of a new licence (the 'New Licence') covering the Tilapia oil field ('Tilapia') in the Republic of the Congo ('the Congo'). The Company has a 56 per cent interest in Tilapia, with SNPC currently holding the other 44 per cent.
The 50-square km Tilapia licence area is located in the prolific Lower Congo Basin and lies adjacent to one billion-barrel fields producing from multiple pay zones.
The New Licence is proposed to have a 20-year term. Under the terms of the New Licence, the Company's wholly owned subsidiary, Petro Kouilou ('PK'), will continue to hold a 56 per cent interest in and operatorship of Tilapia. It is not proposed that a signing bonus be paid, but the Company has committed to drilling TLP-103, a new multi-horizon well targeting:
o two million-barrels of proven reserves in the R1/R2 producing reservoirs;
o an 8.1-million-barrel gross contingent resource discovery in the Mengo interval; and
o a deeper prospect, which has been assigned 58.4 million-barrels of gross unrisked prospective resources in the Djeno Sands.
The last couple of RNS I seen that mentioned the water injector FOR 101/102 was the 3rd and 7th Jan 2019 which made it sound a promising option. Was there an additional item that i've missed looking through the older RNS?
Crazy the company got themselves into this position, no oversight, conflicts of interest and rubbish finance arrangements. Should have just came to the market for the full amount and put up a options of a share buy back after oil had been hit, warrents or a dividend of the SNPC money and oil sales as a sweetener if the shares where held from that point.
I think the consolidation and raise is the most likely way now and take a hit on the current finance arrangements, need a real review of that well and improve their communication.
What are the realistic options now for moving forward, do you see a raise at this low level which would require a shed load of shares to move forward or even a share consolidation and raise? The current Finance arrangements are a killer.
Would like to hear more about what people would think the costings of the different options would be, sidetrack or back to the original.
101/102 was meant to be a cheap option to get 400 bopd on the books by doing a water injector but that went quiet as well. If that's cheap enough might be able to hit that to get some money coming in to hold on for the legal and money disputes to go their course.
What are everyones thoughts on the cost of the sidetrack, not ever been clearly stated?
They should have the plug installed though havent see any followup info on that as far as i can see.
Would really like to hear about the 101-102 to see if it was still vible to get 400bopd to get a bit of money coming in. Would give some breathing space while all the legal, owed money and license are discussed.
Has everyone seen the website for ATOG:-
anglotunisianoilandgas dot com
Straight copy from AAOG, same logo and everything and they both have the same company address.
Wonder if its a table in the corner haha
Company address: 12 Berkeley Street, London W1J 8DT
The annoying thing about this all is that they went for stupid complex finance arranements to try and keep dillution at a minimum.
Should have from the start done a raise at higher levels and spelt it out we are covering SNPC share and will recover from oil payments, then just done a open offer or primarybid with the proviso that they would do some share buy backs in the future when oil is flowing.
Last RNS was speaking about using TLP102 as the water injector to get 400bopd out of it.
Studies of this strategy by both the Company and the specialist reservoir engineering company predict that using a water injection system could lead to a rise in production from TLP-101 to up to 400 bopd. The Company is now obtaining estimates for the cost of this work and assessing the commercial viability of this project.
Should be spud over this weekend according to his last interview on Malcy's Blog.
Search for the below in google and it will come up
2019/10/core-finance-ceo-interview-james-menzies-of-coro-energy-3/
http://www.mines.gov.zw/?q=procedure-and-criteria-issuing-exclusive-prospecting-orders-epos
It’s probably related to the EPO verification checks as it includes work programme and budget.
What do you think the Sp would go to if they do have a successful drill with the Djeno?