Member Info for Strongman

It is a bit dated (26/11/18), but interesting enough.

Third time lucky

AAOG has resumed drilling of the TLP-103C well in the Congo, which is expected
to be completed by the end of December. The well is targeting three different
horizons with varying risk/reward; the producing R1/R2 horizon (risked NPV
6.0p/sh), the discovered Mengo interval (risked NPV 17p/sh, unrisked 29p/sh),
and the deeper Djeno exploration target (risked NPV 15p/sh, unrisked 67p/sh).

?Drilling resumes. Drilling has resumed at AAOG’s TLP-103C well in the Republic of
the Congo following the repair and reconditioning of the rig’s brake system. The well
is at 660m with the three target horizons at 1260m (R1/R2), 1,850m (Mengo) and
2,230m (Djeno). The well is expected to TD towards end-December and we expect
the first target reservoir, R1/R2, to be reached in about two weeks. AAOG will provide
updates as it receives results from the target horizons.

?Significant compensation. The rig owner, SMP, has accepted fault for the delay
and, in addition to the rig being on zero rate during the delay, it will compensate
AAOG for a substantial amount of the additional costs incurred during the delay.
Compensation will be via a significantly reduced day rate for the rig going forward.

?Still all to play for. AAOG shares have been under heavy pressure since the well was
suspended for a second time, with the £1m drawdown on its £5m Convertible Loan
Note adding to the pressure. The resumption of drilling, alongside compensation for the
additional costs incurred during the two and a half week downtime, should help steady
the ship. Importantly, the potential of the well remains intact.

?New shares issues. AAOG has also announced that Sandabel will convert £750k of
loan notes, issued as part of its £1m initial draw down on the £5m CLN facility, into
11.9m new shares at a conversion price of 6.3p, representing 6.8% of the enlarged
share capital. This more than offsets the 3.6% short position (5.8m shares) held by
Sandabel before this issue. Sandabel has undertaken not to adopt any net short
position in the Ordinary Shares in the future.

No issue Drewky. The first two zones will be this week and the other one next week. The lower horizon a week after and then TD.

Hope it helps.

Thanks for your email.



On the delay, we share everyone’s frustration with SMP and its rig, but stand by the decision to delay while the brake system had some parts repaired. These parts met all testing requirements during the pre-spud rig inspection but had failed subsequently. The problem was picked up on a rig inspection by our team. Had the parts failed when we intersect one of the target horizons then the effect could have been catastrophic for the well. The repair of the parts is taking place in Paris is nearly complete and then they will be shipped back and drilling can recommence. We expect this to happen in less than a week. In addition to SMP being on zero rate during the delay, SMP are also going to compensate us for some of the costs incurred by the company.



Once we recommence drilling, we expect to hit R1/R2 about 12 days after recommencing and then the Mengo 4 days after that.



While a delay is always unwelcome – and I promise you we find it equally irritating – it ultimately does not affect the outcome for the well, which will ultimately only be proven as we go through the target horizons.

Finally, I do very much appreciate the importance of investments for every single shareholder, so please do email me if and when you have any further questions.



Kind regards,

David Sefton
Executive Chairman

Drewky

You are incorrect in your assumption.

R zones are at 1300, company estimates these to be hit this week. Then we will see if there is report-able oil to show at this 90% COS level.

Next horizon is 4 days after which is called Mengo with a COS of 60%.

By all means though, wait for TD before deciding to buy in.

Ignore that - 7.78

7.90 ask for 50k shares.........

Drewky, I am surprised you are leaving your research on this share to bulletin board reply's. There is a wealth of information just on the company website and the past RNS's.

Try this first:

http://www.aaog.com/archive/presentations/AAOG-presentation-May-2018.pdf

7.50 v 7.70. Good to see Fincap on the high bid.

Yes, I guessed a few were wanting a sub 7 ask this morning. All those posts over the weekend and the best they could get early doors was 7.125 ask. WIN's took on the shakes this morning, but look to have given up, as sellers are limited.

7.325 v 7.55 live

And they now buy back higher, pointless money losing trade this morning by some. This is not trade share this week, it is time to take a position for oil zones coming in days apart.

Oil rising, drill bit driving down to R zones this week, could be a very good week or two. Markets also bullish.

Drewky

TLP-103C will be drilled to a total depth of 2,700 metres and is expected to take 64 days to complete, including testing. The Well targets three horizons: the current producing horizon of R1/R2; an appraisal of the Mengo horizon and a deeper exploration prospect in the Djeno horizon from which the adjacent Minsala field produces at a rate of 5,000 bopd. If the Well performs in accordance with the Company's geological model, TLP-103C can be extended to target the Vandji horizon.

As the drill gets to each target horizon, it will be reported back if they find oil or not at each of the three points. First horizon is at some point this week, next a few days later and last a week after that.

No need to be amazed marineville. Most sensible and market wary shareholders see the word ''up to'' as to mean just that. Maybe we only require £1m, maybe £2m, maybe £3m or maybe the whole £5m. But until its drawn down or used, no one knows do they. What if it is never used? have you considered that fact marinville?

This is the text you may want to also consider:

''There is no certainty that the directors will use this authority and there is no intention currently to do so. Moreover, there is no certainty that any eventual financing of the Company will involve the issuance of equity at all.''

This could mean a simple future loan facility, of cash repayments etc. This all hinges on the results of this well, no point in speculating until all zones results are in, and a forward drill plan is established off those results.

You do seem to be a little excitable this weekend, relax, it is Sunday. Enjoy the day with family. I am sure as a apparent shareholder, you will be looking forward to a busy week in AAOG, what with the drill now bearing down into the R zones soon. Company making month of December perhaps.

marinville, Look stop digging a hole for yourself here, you are now showing some desperation. Calm down and take in the information if you did not know the meaning of it before. There is no measuring competition here, I guess you have had a small knock back on your de-ramping, but take it like a man and move on.

There is no need for us two to clutter this board, with some back and forth. You have shown to the board here today, your motives and intellectual understanding of company law. All I have done is correct it, nothing more.

Now if the new information provided from the company CEO, still leaves you in the dark, then I am afraid that is a issue with you understanding the mechanics of the market and the subsequent failure to understand the basics of nominal value in shares. It is not for me to do the research for you.

Saying all that, I have a busy day ahead with some Saturday chores, so I bid you a good day.

I most certainly did ask permission to use the email content, I always do. There is no need for any further RNS for clarification imo. If you still have doubts, then just email the company as we have done. Very simple process.

Most of us understood the RNS, but the ones who did not, now have clarity, so rest easy Inner - Harmony. I bet your looking forward to Monday now.

He must have had a few emails I guess Mr_Orange. They should have included the word ''nominal'' in the RNS. Most understood the text and meaning, but a few like Inner-harmony and marinville struggled with it :)

Take note marineville, it a simple exercise of clarification. The time it has taken you to put up several posts on this subject, you could have done the same as me. Taken me 5 mins to fire off a email this morning.

Thank you for your email.



The authority being sought is a general one to issue shares - which have a nominal value of 5p - whether in a placing or pursuant to a facility, but there is no current active placing or facility being proposed and no price being proposed at which such a placing or facility would be offered. As and when the company looks to offer shares in a placing or enter into a facility, pricing would be offered then. We are not far from reaching the first target horizons on TLP-103C and I expect that the results of this will be material to any such offer. Note that we are seeking the authority now as there is a notice period of 14 days which needs to elapse and with the holiday period looming, it seemed prudent to the board to put an authority to allot shares in place ahead of time.



Kind regards,



David Sefton

Executive Chairman

No issue with you trying to trade the share marineville, but the methods you employ. The share price will move up or down without the need for the silly posts you try and place here to create panic and hoping a few will sell so you can make the tenner here and there.

Some of us have every right to challenge or correct you on that basis.

I have heard the IPO story a few times already, you do not seem the type to hold longer then a day, so forgive me for thinking you have held since IPO. Length of time on a share is not equivalent to length of service marineville, you should dismiss that from your points forthwith imo.

Now, as I have said above, I have no issue in you trading the share, afterall it is your money to control how you wish. But if you are going to use misinformation and bluster to gain a few pence, then we have every right to correct your posts when we find it blatantly clear what your motives are.

Inner-Harmony

I am surprised you are asking me these basic questions, when you have been debating this across a couple of other boards with marinville already:

''Morning marineville .... same as you - trade in and out of shares looking for deep value plays where SP is down due to poor market sentiment and NOT due to bad news (i.e. potential value traps) ...''

Anyway, back to your question.

''nominal 5p .... of course the actual issue price can be below, the same or above this nominal price :-))''

A new share issue price cannot be legally done under the 5p nominal value. It will require amendments to the Articles of Association of the Company and approval of the new wording of the Articles of Association regarding to the changes in the nominal value of the shares in a EGM / GM. It will have to be a special resolution as well.

As for your other question:

''Now you respond i.e. the funding situation holistically''

You have lost me there, not sure what holistically means. It is a medical term is it not LOL.