Positive Operational Update From Tilapia Drill
27 December 2018
Anglo African Oil & Gas plc, an independent oil and gas developer, is pleased to announce that the TLP-103C well ('the Well') at its Tilapia licence in the Republic of the Congo intersected the Mengo horizon during the late afternoon of 24 December 2018 and that hydrocarbons were encountered.
The Mengo is the second of three horizons targeted by the Well. The top of the Mengo was picked at 1,856 mMD and formed of interbedded sandstones and claystones. This was in line with the Company's geological model. The top of the Marnes de Pointe Noire, underlying the Mengo, was picked at 1,960 mMD and formed of dark claystones.
The Company has observed oil and gas shows throughout the entire 50m of sandstone beds encountered. Hydrocarbon pay thickness will be confirmed by wireline logging data and pressure points.
Additionally, three new potential pay zones have been encountered between the reservoir R2 and the Mengo. These zones, formed by sandstones, showed a positive log response and hydrocarbon shows. They will be investigated with MDT logging to test their potential. These new zones were not encountered in the TLP-101V, a previous well already producing at the Tilapia site.
The Company will now complete the current well section and then pause drilling in order to undertake a full suite of Schlumberger wireline logging. This will enable the Company to fully evaluate the properties of the Mengo, the R1/R2/R3 and the three potential new pay zones. An announcement will be made once the results of this logging are known to the Company.
Following wireline logging, the Company will continue drilling towards the deeper Djeno horizon, which is known to be a prolific producer in neighbouring fields.
David Sefton, Executive Chairman of AAOG, said, "TLP-103C has now encountered hydrocarbons in the first two targeted horizons. This success in the Mengo is significant. The Mengo has, depending on the exact characteristics of the reservoir following logging and eventual testing, the potential to provide material increases in production, and cashflow, to the Company.
"Once again, the geological model was extremely accurate, with the Mengo being intersected at a variance of less than three metres from the model. Where there has been divergence is that initial results show a thicker Mengo than expected, which translates into a potentially larger pay zone. A genuine surprise, albeit a very welcome one, has been to encounter potential pay zones above the Mengo, in layers where this was thought unlikely due to previous well data. These results indicate a well-developed on-shore/offshore hydrocarbon system underlying Tilapia and validate our confidence in this asset.
"The results from the well thus far are a well-deserved reward for all the hard work by the operational team and, most importantly, our shareholders, who have supported the Company and ultimately made this well possible. We look forward to completing the wireline logging exercise and then drilling towards and into the Djeno."
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside information for the purposes of the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
For further information please visit www.aaog.com or contact:
|Anglo African Oil & Gas plc
David Sefton, Executive Chairman
James Berwick, Chief Executive Officer
|Tel: c/o St Brides Partners
+44 20 7236 1177
|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, Hugo de Salis|
Notes to Editors
Anglo African Oil & Gas plc (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.
Amélie Miyaska, Senior Geologist, Master of geology, Advisor to the Board of Anglo African Oil & Gas plc, who has over 15 years' experience in the oil & gas industry, is the qualified person that has reviewed and approved the technical content of this announcement.