Anglo African Oil & Gas PLC Production Plan for TLP-103C (8266P)
February 13 2019 - 2:00AM
UK Regulatory
TIDMAAOG
RNS Number : 8266P
Anglo African Oil & Gas PLC
13 February 2019
Anglo African Oil & Gas PLC / Index: AIM / Epic: AAOG /
Sector: Oil & Gas
13 February 2019
ANGLO AFRICAN OIL & GAS PLC ("AAOG" or the "Company")
Production Plan for TLP-103C
Anglo African Oil & Gas plc (AIM: AAOG), an independent oil
and gas developer, is pleased to provide details of its plan to
bring the TLP-103C well ('the Well' or 'TLP-103C') at its Tilapia
licence in the Republic of the Congo into production.
Highlights:
-- TLP-103C to produce from the upper reservoirs by comingling
production from R2 and the Mengo, following a double completion
including a one-off frack of the Mengo
-- Initial anticipated aggregate flowrate in excess of 1,500 bopd for the first 14-18 months
-- Projected financial metrics at 1,500bopd:
o c.US$1 million/month net free cashflow generated
o breakeven oil price falls to below US$20 per barrel
-- First production targeted for April 2019
-- Completion of the Well to production will be funded from existing cash resources
David Sefton, Executive Chairman of AAOG, said: "We are excited
by this funded plan for TLP-103C and are working hard to bring the
Well into production as soon as possible. The development schedule
is predicated on the availability of Schlumberger's fracking
equipment which we have been informed will be available in the
beginning of April.
"Bringing TLP-103C into production is the key to realising the
value that we believe has been unlocked by the very successful
results from the Well. With production rates of up to 1,500 bopd
expected, TLP-103C will provide considerable cashflow for the
Company of approximately US$1 million net per month. The board is
focused on building shareholder value and bringing TLP-103C into
production is the next step in what has been a very successful
programme so far."
As previously announced, TLP-103C encountered hydrocarbons in
each of its target reservoirs. Based on the Company's analysis of
the results from the Well and the board's long-stated desire to
become cashflow positive as quickly as possible, management has
concluded that TLP-103C is to be brought into production through
comingling of the R2 and Mengo reservoirs via a double completion.
This can be achieved from the Company's existing cash resources
whereas production from the Djeno would require improvements to the
topside infrastructure at Tilapia.
Analysis of TLP-103C in conjunction with the TLP-101 well and
older well TLPM-1 gives the Company confidence of an initial
flowrate in excess of 1,500 bopd with a steady decline after 14-18
months in the Mengo and a sharper decline in the R2. The Company
then expects to see a long-term production profile of approximately
400 bopd.
The production plan developed provides for a dual completion
from both R2 and the Mengo, with a one-off frack being used to
bring the latter horizon into production. Schlumberger fracking
equipment is due to arrive in the Congo at the beginning of April
and the Well will be brought into production immediately following
fracking, around the end of April 2019. The Company is currently
funded for this work stream.
At 1,500bopd the Company has a breakeven oil price, including
covering all operating and G&A costs in both the Congo and
London, of less than US$20 per barrel and produces monthly net free
cashflow of approximately US$1 million. To the extent that the
Company is still owed monies by SNPC, it will be able to recover
such amounts from gross oil receipts otherwise due to SNPC from the
Well.
The board is encouraged by the progress made to date on its
negotiations to renew the Tilapia licence and having now received a
letter of intent to re-award from the government anticipates
further news in the coming weeks regarding an extension of the
licence to 2040.
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.
Enquiries
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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