Anglo African Oil & Gas has been partially reimbursed by the Congolese national oil company Société Nationale des Pétroles du Congo for costs relating to the Tilapia Licence.
The oil and gas developer said that the Société Nationale des Pétroles du Congo owes it roughly $10 million in respect for its share of the total costs.
Anglo African Oil & Gas had proposed to the Congolese national oil company that it would accept that transfer of a large portion of its 44% interest in the licence. However, the Congolese national oil company made an initial cash payment of $663,000 to Anglo African Oil & Gas. It also informed Anglo African Oil & Gas that it would propose a short-term payment plan in order to repay the remaining debt, which roughly stands at $9.5 million.
David Sefton, Executive Chairman od Anglo African Oil & Gas, commented on the announcement:
“We are pleased to receive this payment from SNPC although our preference remains to increase the size of our holding in the Licence, as we had recently proposed to SNPC. However, SNPC is entitled to repay the overdue debt in cash, and we have emphasised to SNPC that this needs to be done in a timely manner. We also recognise that SNPC takes a similar view to us as to the value of the field and therefore why it would prefer to meet the debt in cash.”
“As previously stated, we are working towards bringing TLP-103C into production in April. The extra cash that we have now received plus the substantial further funds to come from SNPC, reinforces the cash position of the Company and therefore its ability to meet the costs associated with this work.”
In January, Anglo African Oil & Gas announced that it would raise £6 million for expansion. Earlier in November, shares in Anglo African Agriculture surged following a trading update.
`At 09:52 GMT Monday, shares in Namibian Resources plc (LON:AAOG) were trading at +0.9%.