Anglo African Oil & Gas works toward Tilapia rig contract

Anglo African Oil & Gas works toward Tilapia rig contract

Oil and gas exploration and development company Anglo African Oil & Gas (LON: AAOG) saw good financial progress during the first half, as it worked towards signing a rig contract for sidetrack drilling at the Tilapia licence.

It told investors that it would be making efforts to sign the contract based on the prospect in the Republic of Congo, following its drilling of the TLP-103C well, which uncovered 56 metres of oil pay, 26 metres in the Mengo formation and 12 metres in the Djeno discovery.

“The operational plan is to re-enter the existing TLP-103C well and drill the new sidetrack just below the Mengo formation to test the Upper Djeno and explore the Middle Djeno formations.  The objective is to determine whether the Djeno can be brought into production from either horizon. Depending on the flowrate, some enhancements to topside infrastructure at the Tilapia field will be required.”

“Of course, drilling activity is never without risk.  However, we believe that the sidetrack operations have an attractive risk/reward profile.  TLP-103C has already proven the geological model and confirmed the presence of the Djeno at Tilapia.  The fallback plan is to produce TLP-103C from the Mengo formation.”

Alongside its operational announcements, the Company’s fundamentals revealed financial progress. In a comparison of H1 2018 and H1 2019, revenues had risen some £67,000, up to £173,524 for the six month period ended 30 June. Despite administrative expenses widening by over half a million pounds to £2.12 million, the Group’s net loss narrowed on-year, from a loss of £279,000 to £86,000.

Alongside this, Anglo African Oil & Gas shareholders enjoyed similar progress, with their loss per share narrowing from 2.71p, to 1.03p.

Anglo African Oil & Gas comments

Speaking on the update, Chair of the company, Sarah Cope, said,

“After the positive TLP-103C well results at the beginning of the year, the remainder of the review period and subsequently has been centred on drawing up a comprehensive forward plan to monetise the discovery in the Djeno at the earliest opportunity.”

“With an operational team in place and a funding package finalised, the team is now concentrating on signing a rig contract for the sidetrack into the Djeno. The company will provide further updates at the appropriate time.”

Speaking on its outlook, the Company’s statement read,

“After the positive TLP-103C well results at the beginning of the year, the remainder of the review period and subsequently has been centred on drawing up a comprehensive forward plan to monetise the discovery in the Djeno at the earliest opportunity.  With an operational team in place and a funding package finalised, the team is now concentrating on signing a rig contract for the sidetrack into the Djeno.”

Investor notes

The Company’s shares are up 1.11% or 0.035p to 3.18p per share 27/09/19 14:03 BST. Analysts from finnCap remained unchanged in their ‘Corporate’ stance on Anglo African Oil & Gas stock. Neither a dividend yield nor a p/e ratio are currently available, the Group’s market cap is £12.39 million.

Elsewhere in oil and gas news, there have been updates from; Chariot Oil and Gas Limited (LON: CHAR), Union Jack Oil PLC (LON: UJO), Prospex Oil and Gas PLC (LON: PXOG), IGAS Energy PLC (LON: IGAS), Trinity Exploration & Production PLC (LON: TRIN), Baron Oil PLC (LON: BOIL) and Cabot Energy PLC (LON: CAB).