16 May 2017 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 first workover at Tilapia oil field
Anglo African Oil & Gas plc, an independent oil and gas developer, is pleased to announce that the workover and wireline equipment that will undertake the reperforation and acidisation of the R2 reservoir in well TLP-102, with a view to bringing this well into production, mobilised to site on 15 May 2017. Necessary equipment test operations are underway.
The workover of TLP-102 represents the commencement of a fully funded work programme targeting a major increase in production at the Tilapia oil field in the Republic of Congo. The Company will make a further announcement with the results of this first workover in due course.
In accordance with the plan set out at the time of admission, following the workover of TLP-102 the Company intends to workover the TLP-101ST well to further increase production. By end-August 2017 the Company intends to drill a new well at TLP-103 to stimulate the Mengo sands and test the deeper Djeno sands.
In the meantime, AAOG continues to work towards Secondary Completion which the Company anticipates will occur in the near future. Over the weekend, the SNPC agreed that it would not exercise any right of pre-emption over the shares to be acquired by AAOG pursuant to Secondary Completion. The only condition remaining to Secondary Completion is the approval by the Minister of Hydrocarbons in the Republic of Congo. In the meantime, the Company enjoys full economic rights over the Tilapia field by virtue of Initial Completion having occurred as further outlined in the Admission Document.
Capitalised terms in this announcement shall have the same meaning ascribed to them in the Company's Admission Document unless the context requires otherwise.
**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 |
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Alex MacDonald, Chief Executive |
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finnCap Ltd (Nominated Adviser and Joint Broker) | Tel: +44 20 7220 0500 |
Christopher Raggett, Giles Rolls, Anthony Adams (Corporate Finance) |
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Emily Morris (Corporate Broking) |
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St Brides Partners (Financial PR) | Tel: +44 20 7236 1177 |
Frank Buhagiar Elisabeth Cowell
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The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Notes to Editors
Anglo African Oil & Gas (AAOG) is an AIM-listed independent oil and gas company acquiring 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.
Tilapia has an excellent address, being located close to multi-billion barrel fields that include the ENI-operated Litchendjili field and the 5,000bopd Minsala Marine field. Tilapia currently produces approximately 38 bopd from two near-surface intervals. It has an undeveloped discovery in the lower Mengo sands with gross contingent resources of 8.1m barrels and a deeper exploration prospect, with gross prospective resources of 58.4m barrels, in the productive Djeno interval from which the adjacent Minsala field produces.