7 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 TLP 103 well on Tilapia field
Anglo African Oil & Gas plc, the independent oil and gas developer, provides the following update on the TLP 103 well and also details of a forward plan to minimise disruption to the drilling programme at the Tilapia field in the Republic of the Congo.
On 15 August 2018, the TLP 103 appraisal well was spudded using the SMP 102 drilling rig. Whilst drilling through the shallow section a number of drilling challenges were encountered, caused by localised geological conditions, which resulted in ground movement that impacted the safe operation of the rig. Initial inspections show no damage to the rig. The events occurred before the well had reached any of the target horizons. After a number of attempts to overcome this problem it was jointly decided by SMP (the drilling contractor) and AAOG to cease drilling, abandon the current location and move the rig 100 metres to the north west and re-spud the well. The process to prepare the new location, move the rig and re-spud the TLP 103 well is expected to take approximately 25 days. Following the re-spud it is expected that drilling will take 64 days to complete.
In addition to contingencies in the drilling budget and potential offsets and claims under insurance policies, the Company has available to it offers of debt finance sufficient to meet any cost overruns due to the delay and need to re-spud.
The Company remains committed to drilling TLP-103.
**ENDS**
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
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, Hugo de Salis, 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.