Continental Focus, International Reach

Drilling Resumes on Tilapia

Wednesday, November 28, 2018

Drilling operations have resumed on Anglo African Oil & Gas’ (AAOG’s) TLP-103C well on the Tilapia concession in the Republic of Congo. Drilling had been halted following an unscheduled rig inspection by AAOG staff where an issue was detected on the elmagco brake system.

The suspension of drilling allowed for the rig company (SMP) to remove the parts for repair. These parts had met testing requirements during the pre-spud third-party rig inspection, but performance had subsequently diminished. The parts in question have now been repaired and reconditioned in Paris by the drilling contractor and reinstalled to the rig.

The company confirms that suspension occurred before intersection of any of the target horizons being the R1/R2, Mengo and Djeno. Had the parts failed further into the drilling program then the effect could have been materially adverse.

Drilling recommenced at a depth of 660 meters, and AAOG expects to reach TD toward the end of December.

The drilling contractor accepted that this delay is entirely their fault and have agreed that, in addition to the rig being on zero rate during the delay, they will compensate AAOG for a substantial amount of AAOG’s additional costs which have been incurred with respect to this delay. The mechanism for this compensation is through a significantly reduced day rate for the rig going forward.