24 Sep 2018 07:00
Anglo African Oil & Gas PLC / Index: AIM / Epic: AAOG / Sector: Oil & Gas
ANGLO AFRICAN OIL & GAS PLC ('AAOG' or the 'Company')
Update on Drilling Programme
Anglo African Oil & Gas plc, an independent oil and gas developer, is pleased to announce that the construction of the extended pad at the Tilapia field in the Republic of the Congo has been completed ahead of schedule. The well to be drilled on the new pad will be designated TLP-103C and hammering of the conductor followed by moving the rig onto location will take place over the next week.
Following the need to abandon TLP-103, a review of events was carried out by an external engineering consultancy which sent staff to Tilapia on behalf of the Company to assess the issues which were encountered along with the Company's in-house engineering team. Following this review, recommendations have been made and implemented to mitigate further issues in this shallow section in well TLP-103C should they be encountered. Both internal and external reviews confirmed that the geological issues which were encountered could not have been identified in advance.
The Company expects to commence drilling operations on the TLP-103C well in the week commencing 8 October 2018.
David Sefton, Executive Chairman of AAOG, said, "Following the unwelcome need to pull out of TLP-103 and re-spud, the operations team, the rig contractor and our external consultants have worked tirelessly to get the drilling programme back on track as soon as practicable and to take steps to ensure that there is no repeat of the problem. The new drilling pad is now complete and relocation has allowed for an improved deviation of the well to target the apex of the Djeno horizon.
"The events have underlined the importance of our careful cash management and capital planning, including the earlier negotiation of debt facilities on normal commercial terms. The result is that the Company does not require support from shareholders to absorb the additional costs of the re-spud.
"We will confirm the start of drilling and look forward to providing further updates as drilling progresses. We are very grateful for the patience and support of shareholders while we have overcome this hurdle."
**ENDS**
For further information please visit www.aaog.co or contact:
Anglo African Oil & Gas plc | Tel: c/o St Brides Partners +44 20 7236 1177 |
David Sefton, Executive Chairman James Berwick, Chief Executive Officer |
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finnCap Ltd (Nominated Adviser and Broker) |
Tel: +44 20 7220 0500 |
Christopher Raggett, Giles Rolls, Anthony Adams (Corporate Finance) |
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Camille Gochez (Corporate Broking) |
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St Brides Partners (Financial PR) | Tel: +44 20 7236 1177 |
Frank Buhagiar, Juliet Earl |
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Notes to Editors
Anglo African Oil & Gas (AAOG) is an AIM-listed independent oil and gas company that owns a 56% stake in the producing Tilapia oil field in the Republic of the Congo. The Company boasts a low-cost production story in a prolific hydrocarbon region with significant exploration upside, differentiating it substantially from its E&P peers. Additionally, management's remuneration is tied to hitting production milestones, reflecting their strong focus on cost control.