3 Jan 2019 07:00
Anglo African Oil & Gas PLC / Index: AIM / Epic: AAOG / Sector: Oil & Gas
3 January 2019
ANGLO AFRICAN OIL & GAS PLC ('AAOG' or the 'Company')
UPDATE ON WELLS TLP-101 and TLP-102
Anglo African Oil & Gas plc, an independent oil and gas developer, is pleased to provide the following update on wells TLP-101 and TLP-102 at the Company's Tilapia field in the Republic of Congo.
On commencing drilling of TLP-103, TLP-101, which was producing around 30 bopd at the time, was taken offline due to the proximity of the flare to the drilling apparatus. The Company has now upgraded and relocated the flare to enable production from TLP-101 to continue during drilling. TLP-101 has been brought back into production and has now produced an average of 55 bopd during a two week test period.
During the downtime, the Company engaged a specialist reservoir engineering company to conduct a full review of wells TLP-101 and TLP-102 which followed on from the stimulation exercise performed on well TLP-102, successfully conducted earlier in 2018. The results of these studies have shown connectivity between the two wells. Due to this connectivity the reservoir engineering company has recommended using TLP-102 as a water injector to enhance production from TLP-101.
Studies of this strategy by both the Company and the specialist reservoir engineering company predict that using a water injection system could lead to a rise in production from TLP-101 to up to 400 bopd. The Company is now obtaining estimates for the cost of this work and assessing the commercial viability of this project.
AAOG Executive Chairman, David Sefton, said: "While the recent focus of news from the Company has rightly been on TLP-103C and the very successful drilling campaign, we have also been working methodically on the other two wells at the Tilapia site. TLP-101 being taken offline for a while provided a perfect opportunity to run tests that would not ordinarily have been possible. Following these tests, TLP-101 has been successfully brought back on line and at rates of production which are materially more than those at which that well has produced over recent years.
"However, the very interesting result of the testing and the excellent work by the reservoir engineering company has been to come up with several interesting and innovative ideas which have the potential to make TLP-101 produce at levels that would generate significant income for the Company."
**ENDS**
Market Abuse Regulation (MAR)
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
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.