RNS24 Oct 2018 08:06
ANGLO AFRICAN OIL & GAS PLC ('AAOG' or the 'Company')
Operational Update and Financing Facility
24 October 2018
Anglo African Oil & Gas plc, an independent oil and gas developer, is pleased to provide an operational update on well TLP-103C currently being drilled on the Tilapia field in the Republic of the Congo and to announce that it has entered into a conditional GBP5 million Convertible Loan Note Financing Facility with Sandabel Capital L.P. ("Sandabel") ("the Financing Facility"), the principal terms of which are set out below.
The issue by the Company of all the loan notes pursuant to the Financing Facility, and the potential future issue and allotment of ordinary shares upon conversion of such loan notes in accordance with the terms of the Financing Facility, will require shareholder approval, which will be sought at a General Meeting of the shareholders ("GM"), to be held at the offices of finnCap Ltd, 60 New Broad Street, London, EC2M 1JJ on 13 November 2018 at 11:00am. The formal notice of the GM, including details of the proposed resolutions, have been posted to shareholders today and is available on the Company's website.
Operational update
As previously reported, well TLP-103C spudded on 8 October at a newly constructed pad approximately 95 metres north-west of TLP-103. The first section of TLP-103C has been drilled successfully and the casing set and cemented. Drilling of the second section of TLP-103C has commenced. This well did not encounter any of the shallow unconsolidated formations intersected in the TLP-103 well. Nevertheless, the additional mitigation procedures and measures put in by the Company remain in place.
Drilling of TLP-103C is currently performing in line with the schedule previously announced, with the Company expecting to have reached all three principal target horizons (R1/R2, Mengo and Djeno) before the end of November, and, at this stage, the formations encountered are consistent with the Company's geological model.
The Company has also completed an assessment of the current rig market and, as a result, has had discussions with the current drilling contractor, Société de Maintenance Pétrolière ("SMP"), in order to secure an option to keep the current rig, SMP-102, on site at Tilapia in order to drill a potential further well, TLP-104, which would be the second well in the anticipated six-well development plan. This plan will be reviewed following the completion of TLP-103C and informed by the results of that well. SMP has agreed in principle for SMP-102 to remain on site, which would result in significant mobilisation/demobilisation cost savings for the Company.
The Company will continue to inform the market of drilling progress.
The Convertible Loan Note Financing Facility
The Company announced on 7 September 2018 that it had received several offers of debt facilities to provide future funding flexibility whe