Finncap9 Jan 2019 08:50
finnCap Research Company Notes - 3 January 2019
Jan 03, 2019 / News
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Sector: Energy
Anglo African Oil & Gas (AAOG) : Corp
Tilapia back online at improved rate
Key data
Share price (p) 12.3
Target price (p) 38.0
Market cap (£m) 21.4
Enterprise value (£m) 14.9
Another fillip of good news from AAOG, which has restarted production from the TLP-101 well at a higher rate than before it was shut in, plus is considering the commercial viability of a water injection project to materially boost production from the well. This will provide welcome cash flow as the company continues to look for an alternative financing solution to the £5m Sandabel facility (£1m drawn). Next up, likely in short order, will be the results of the wireline logging on the various zones encountered so far with TLP-103C. The market will be looking for confirmation of better-than-expected net pay in the Mengo as well as more detail on the reservoir quality for that and the newly encountered zones.
Jonathan Wright | jwright@finncap.com