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Anglo African Oil & Gas PLC

Anglo African Oil & Gas inks option agreement for rig

It was crucial to get the right rig, said chief executive James Berwick as he confirmed drilling operations will get underway slightly later than expected

Anglo African Oil & Gas PLC -
Work will take place in either the first or second quarter of next year, depending on SFP’s work commitments

Anglo African Oil & Gas PLC (LON:AAOG) has signed a rig agreement ahead of a side-track well planned for its Tilapia Field in the Republic of Congo.

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 – later than expected.

The plan is to re-enter the TLP-103C well and drill the new side-track just below the Mengo formation.

This will test the Upper Djeno and explore the Middle Djeno formations. 

The objective is to discover whether the Djeno can be brought into production from either horizon.

“Drilling activity is never without risk,” said AAOG in a statement.  “However, the directors believe that the side-track operations have an attractive risk/reward profile.”

The company said the original well had already proven the geological model and confirmed the presence of the Djeno at Tilapia. 

AAOG’s “fall-back plan”, therefore, is to produce from the Mengo formation.

On the rig news, chief executive James Berwick said: "We are very pleased to have entered into the rig agreement and look forward to commencing operations at TLP-103C-ST as soon as the rig becomes available. 

“The rig is the most suitable rig available in country and will come to TLP-103C-ST directly from drilling operations for a super-major." 

“The board of AAOG appreciate that drilling operations will commence later than we had hoped but, following the problems encountered in drilling TLP-103C, it was important that we found the right rig for this drilling campaign to avoid any similar issues," he added.

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Price: 2.5 GBX

Market: AIM
Market Cap: £9.91 m
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