Continental Focus, International Reach

Anglo African High on Tilapia Program

Sunday, June 9, 2019

Anglo African Oil & Gas continues to work on its CPR covering the Tilapia oil field in the Republic of Congo (ROC). The primary purpose of the CPR is 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 Anglo African 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.

In parallel to the CPR process Anglo African 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.

In light of that the company has confirmed high quality oil flowed to surface under its own pressure at the TLP-103C, Anglo African is considering a revised production plan for the well.

Further to the CPR news and the possible revised production plan, the company has been meeting with the government of ROC to finalize the terms of the PSC and other agreements relating to the already confirmed new license over Tilapia. The award is for a 25-year term and its interest will be not less than the 56% it currently holds. Anglo African said it looks forward to finalizing the terms of the underlying agreements governing the new license.

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 license 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 finalizing our operational plan in this regard and working closely with our partners SNPC and the Congolese Government on developing the Tilapia license area.”