30 Apr 2019 07:00
Anglo African Oil & Gas PLC / Index: AIM / Epic: AAOG / Sector: Oil & Gas
30 April 2019
ANGLO AFRICAN OIL & GAS PLC ('AAOG' or the 'Company')
Update on New Licence for Tilapia Oil Field
Anglo African Oil & Gas plc, an independent oil and gas developer, is pleased to announce the receipt of a letter from the Government of the Republic of the Congo signed by the Minister of Hydrocarbons, Monsieur Jean-Marc Thystere Tchicaya, formally offering a new licence (the 'New Licence') to Petro Kouiliou ("PK"), the Company's wholly owned subsidiary, over the producing Tilapia oil field ('Tilapia'). The Company and the Government will now work together to finalise the terms of a new Production Sharing Contract ('PSC') for the new Tilapia licence.
Importantly, the Company has been informed through the letter that the New Licence will have a 25-year period and that PK will retain its current 56% interest in Tilapia.
David Sefton, Executive Chairman, commented, "This is excellent news for the Company. The confirmation that we will receive a new licence represents a major milestone for AAOG and follows hard work by James Berwick and the team through a period of extensive negotiation with the Government and the completion of a due diligence review of AAOG by the Ministry.
"We view the renewal, on extended terms, as an endorsement of AAOG's team and the work we have carried out to date. Renewal of the Licence has always been a critical step in enabling us to put in place plans to maximise production, cashflow, and value from Tilapia. Following finalisation of the PSC, we will accelerate our development plans in order to generate significant cash flow and value for all stakeholders.
"We have long believed in the potential of Tilapia. This potential was demonstrated by the excellent results of the recent TLP103C well. Notably, the well encountered oil shows in all target horizons, including the Djeno Sands, which flows at rates of up to 5,000 bopd per well on neighbouring fields. We continue advanced work on enhanced production and the full development of Tilapia."
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
**ENDS**
For further information please visit www.aaog.com 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
| |
finnCap Ltd (Nominated Adviser and Broker) | Tel: +44 20 7220 0500 |
Christopher Raggett, Giles Rolls, Anthony Adams (Corporate Finance) | |
Camille Gochez (Corporate Broking) | |
St Brides Partners (Financial PR) | Tel: +44 20 7236 1177 |
Frank Buhagiar, Juliet Earl |
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.