Continental Focus, International Reach

AAOG Updates TLP-103C

Tuesday, April 2, 2019

Anglo African Oil & Gas (AAOG) updated the ongoing analysis of its TLP-103C well located on the Tilapia field offshore the Republic of Congo. The well targeted several horizons, including the Djeno, a prolific producer on neighboring licenses. Having encountered oil shows in all target horizons and additional areas, drilling operations at TLP-103C were completed on January 26.

After leaving TLP-103C to stabilize for a period of 45 days, the well was opened to release pressure which was building in the tubing. On opening the well, oil was produced. A sample of this oil was collected and sent to the Congolese state refinery for testing. The results of this test confirm that the oil collected has an API of 43 and that the source of the oil is the Djeno reservoir.

This result therefore confirms the CPI calculations made by Schlumberger in January 2019 which concluded that TLP-103C had encountered oil in the Djeno reservoir. The test also confirms the reservoir’s characteristics and indicates that this oil has moved to surface under its own pressure. This new information will be included in the CPR that is due to be published in the coming weeks.

AAOG also commented on funds owed to it by state-run SNPC. The company revealed that SNPC had agreed to pay monthly instalments, commencing this month, of $600,000. These payments will be applied in settlement of monies owed by SNPC to AAOG. Before any payment this month, the sum owed amounts to approximately $9.5 million and mostly relates to SNPC’s share of the costs of drilling TLP-103C. SNPC has undertaken to send the Company a signed payment schedule confirming the payment plan.

SNPC has also asked the company to re-open 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 once agreement is reached. SNPC has confirmed that it intends to continue making the monthly payments during the negotiation, and on that basis the Company has agreed to restart negotiations.