CPR Update and Cost Reimbursements
25 April 2019
Anglo African Oil & Gas plc (AIM: AAOG), an independent oil and gas developer, provides an update on the timing and scope of its Competent Persons Report ('CPR') for the Tilapia Licence ('the Licence') in the Republic of the Congo and the repayment of funds owed to AAOG by Société Nationale des Pétroles du Congo ('SNPC'), the Congolese national oil company.
Following confirmation that oil from the TLP-103C well ('TLP-103C' or 'the Well'), which had moved to surface under its own pressure, has an API of 43 and originated from the Djeno reservoir, the Company requested that this new information be included in the CPR being produced by Lloyd's Register. To reflect these positive developments, the publication of the CPR is now scheduled for the second half of May.
In line with the payment schedule agreed with SNPC for costs relating to the drilling of the Well and the development of the Licence, the Company has received a cash payment of US$600,000, following the initial payment in March of US$663,000. SNPC has a remaining debt to AAOG of approximately US$8.7m.
Negotiations to exchange a portion of SNPC's equity interest in the Tilapia field in exchange for the forgiveness of the remainder of the debt outstanding remain ongoing.
David Sefton, Executive Chairman of AAOG, said: "While we are keen to receive the CPR based on the results of the very successful TLP-103C well, the fact that oil has come to surface from the Djeno is very significant so we consider that a short delay to allow the inclusion of this data is worthwhile. We look forward to releasing the CPR as soon as we can.
"We are also pleased that SNPC continues to make payments to the Company and we look forward to providing an update on the licence negotiations in the near future."
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||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.