07 June 2019
Anglo African Oil & Gas plc, an independent oil and gas developer, is pleased to provide the following operational update.
Competent Persons Report ("CPR")
Since the announcement of 25 April 2019, the Company has been working on the publication of a CPR covering the Tilapia oil-field in the Republic of Congo. The primary purpose of the CPR was to update the Company's reserve base following the successful drilling of the TLP-103C well which encountered hydrocarbons in every target zone including the potentially prolific deeper Djeno horizon. The CPR provider, LR Senergy, has informed the Company that it requires further data to be able to properly reflect the prospectivity of the Djeno in any new CPR. Accordingly, the Company has paused the work with LR Senergy pending the accumulation of such further data.
However, the Company had in parallel to the CPR process engaged a specialist technical analysis firm, Nutech, to produce its own CPI analysis and report on the Djeno. This report is in addition to the CPI already prepared by Schlumberger and to ensure independent analysis, Nutech were not provided with the Schlumberger report. Nutech has now completed its analysis and the Company is very encouraged by the results it has seen to date which support the view that the Djeno reservoir at Tilapia is of high quality.
The Company has instructed an independent third party technical specialist to prepare a summary of the two CPIs and this will be released by the Company by the end of next week.
Production Plan from TLP-103C
As announced on 29 March 2019, the Company confirmed that high quality oil had flowed to surface under its own pressure. This oil along with attendant gas continues to flow to surface under its own pressure with minimal water content. In light of this welcome information the Company is considering a revised production plan for TLP-103C.
Further announcements in this regard will be made in due course.
Further to the announcements of 29 March 2019 and 25 April 2019, the Company continues to receive regular payments from SNPC as reimbursement for its share of the costs of TLP-103C. The latest payment was received on 17 May 2019 for US$716,000. SNPC has confirmed that it intends to continue making monthly payments and that the sums paid each month are likely to increase. These sums are being applied to paying down creditors and for general working capital purposes.
New Licence for Tilapia
The Company has this week attended meetings with the Government of Congo to finalise the terms of the PSC and other agreements relating to the already confirmed new licence over Tilapia. The award is for a 25 year term and the Company's interest will be not less than the 56% it currently holds. The Company looks forward to finalising the terms of the underlying agreements governing the new licence.
David Sefton, Executive Chairman, commented, "The reports relating to the Djeno reservoir have been extremely pleasing and continue to give us great confidence that we will achieve the Company's primary goal of producing hydrocarbons from the Djeno. Most importantly, these reports are narrower than the broader issues considered in a CPR (such as licence terms, capital plans etc) and focus solely on the technical aspects of the discovery in the Djeno, and how it can produce in the short term. We look forward to finalising our operational plan in this regard and working closely with our partners SNPC and the Congolese Government on developing the Tilapia licence area."
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
|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.