Petroleum Africa
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Tuesday, May 8, 2018
Anglo African Oil & Gas reported that following, and in connection with the request for a new license by the Republic of Congo’s (ROC) state-run SNPC and the company, the Director General of Hydrocarbons for the ROC dispatched a delegation to Anglo’s Tilapia license to confirm the factual basis of the application.
The delegation completed its work on April 20, having carried out all necessary verification. The company expects the process to conclude with the formal proclamation of the new license in the near future.
The company also reported that as the position of its partners to fund their share of the costs of TLP-103 remains unclear, it considers it prudent to procure additional funding in order that it can, if needed, cover all the anticipated well costs. This will remove any uncertainty over the drilling of TLP-103 on the Tilapia license and place the drilling campaign entirely within its control.
The complete cost of drilling and testing TLP-103, notwithstanding a decision to use prime contractors such as Schlumberger, remains at $7 million plus a $1 million contingency. The company has already incurred in excess of $1 million of the drilling costs.
It should be noted that the terms of the existing license over the Tilapia field allow for the company to claw back any drilling costs incurred above its pro rata share from future cashflows. The new draft license referenced in its March 5 announcement also allows for this.
The company has continued to manage its cash reserves with care. Following costs incurred, including and relating to the successful work on TLP-101 and TLP-102, and procurement of long lead items for TLP-103, the company now has reserves of more than $2 million. A portion of this includes cash from SNPC’s share of oil sales which its subsidiary holds, subject to an offset in favor of the company in respect of costs which SNPC has not met.
It is considering the funding options available to it and has received several offers in this regard. The company will consult to determine the most appropriate solution. TLP-103 will not spud until a financing solution is in place.
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