Petroleum Africa
Find us on: 
Thursday, February 14, 2019
Anglo African Oil & Gas (AAOG) plans to bring its TLP-103C well on its Tilapia License in the Republic of Congo into production. The company outlined its plans for this in a recent release.
As previously announced, TLP-103C encountered hydrocarbons in each of its target reservoirs. Based on AAOG’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 bpd with a steady decline after 14-18 months in the Mengo and a sharper decline in the R2. AAOG then expects to see a long-term production profile of approximately 400 bpd.
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. AAOG is currently funded for this work stream.
At 1,500 bpd the company has a breakeven oil price, including covering all operating and G&A costs in both the Congo and London, of less than $20 per barrel and produces monthly net free cashflow of approximately $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 license 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 license to 2040.
" alt="Uganda National Oil Company Appoints New Executive">
" alt="World’s First Ammonia Dual-Fuel Aframaxes to be Developed by MISC">
" alt="Galp Completes Mopane-1X Well Testing">
" alt="ReconAfrica Updates Activity on Upcoming Namibia Drilling Program">
" alt="SDX Disposes of West Gharib Asset in Egypt">
" alt="Botala Increases Stake in Botswana’s Serowe CBM Project">
" alt="Petrofac Awarded Technical Services Contract by GEPetrol">
