What it does
Republic of Congo state oil company SNPC holds the remaining 44% and also a production-sharing and joint operating agreement with Petro Kouilou (PK), Anglo African’s wholly-owned subsidiary.
Other operators nearby are already producing from similar geological formations.
Below R1/R2 are the lower Mengo sands, where neighbouring fields have been producing 400-500 barrels daily from wells for some years.
A deeper exploration prospect lies in the Djeno interval, where the adjacent Minsala field produces at a rate of 5,000 bopd.
Finally, there is the relatively untested Vandji Horizon..
Consultant Havoc reviewed the interpretations by Schlumberger and Nutech of the wireline logs taken from the TLP-103C well.
The report states that "both reports have concluded that reservoir quality is between good and excellent, which supports a commercial decision to implement a plan to seek to produce from the Djeno."
In November, Anglo African Oil & Gas signed a rig agreement ahead of a side-track well planned for Tilapia Field.
It has an ‘option’ on specialised equipment supplied by Société de Forage Pétroliers (SFP) that is currently being used by a “super-major” to drill its 56%-owned TLP-103C-ST prospect and four others.
Work will take place in either the first or second quarter of next year, depending on SFP’s work commitments.
The £8.25mln cash is earmarked for the company to re-enter the TLP-103C well with a view to producing from a “potentially prolific” layer of the Djeno reservoir in its Tilapia project in the Republic of Congo.
For £2.56mln of the funds, existing shareholder Miton Asset Management has bought 49.3mln shares at a price of 5.2p per share, a premium of 27% to the closing share price.
An investor sharing agreement has also been agreed with Yorkville Advisors Global’s YA II fund and Riverfort Global Opportunities PCC, which together will buy £5.7mln of shares at the 5.2p price.
In October, the company said it was in talks over a non-binding agreement with “an international oil marketing and trading company,” which would provide up to US$25 million in offtake and prepayment financing for the development of the Tilapia field.
- Anglo African was recently granted renewal of Tilapia licence
- Talks underway over terms of operating and production sharing agreement
- Fields adjacent to Tilapia producing 5,000 barrels per day from Djeno horizon