Anglo African Oil & Gas PLC Update on workovers (1002L)

TIDMAAOG

RNS Number : 1002L

Anglo African Oil & Gas PLC

17 April 2018

Anglo African Oil & Gas PLC / Index: AIM / Epic: AAOG / Sector: Oil & Gas

ANGLO AFRICAN OIL & GAS PLC ('AAOG' or the 'Company')

Update on workovers of TLP-101 and TLP-102

Anglo African Oil & Gas plc, an independent oil and gas developer, is pleased to announce the following operational update at its 56% owned Tilapia field ('Tilapia') in the Republic of the Congo:

   1.         TLP-101 Well 

The flow lines (and all associated topside equipment) to TLP-101 were cleaned successfully and have been reassembled ready to receive oil flow. As the well was required to be shut down during the cleaning process the Company decided initially to bring the well back on line through the annulus as a test, rather than through the coiled tubing and flow lines which is the main production method on this well. The Company tested production for a period of five days via the annulus to compare flow against the previously restricted flow lines to provide a baseline prior to reverting back to the coiled tubing. During this test period, TLP-101 produced between 80-90 barrels of oil per day through the annulus, which represented an increase in production of 120 per cent when compared to the flow-rate prior to the workover.

The well has now been temporarily closed to enable a shift back to producing through the coiled tubing and the newly cleaned flow lines. The Company is performing a pressure build up before opening the choke and getting the well back into stabilised production. The Company estimates this will take approximately five days. The Company will make a further announcement regarding production levels from TLP-101 once the well has been fully brought back on line and flow tested through the production tubing.

   2.         TLP-102 Well 

Schlumberger conducted a successful intervention focussed on the integrity of the perforations on well TLP-102. The Company believes that any near-wellbore formation damage has now been remedied by the introduction of acid and that as a result contact has been established with the reservoir. The well was produced to surface with the aid of nitrogen lift. On the assumption that contact with the reservoir has now been successfully established, the Company is now investigating the best method by which to produce from this well. This may include a further engineering solution, and the Company has the relevant equipment available in its current inventory if required to complete this work.

David Sefton, Executive Chairman, commented, "I am pleased that these two interventions to TLP-101 and TLP-102 have gone well. The initial testing of enhanced flow rates from TLP-101 was excellent news. The team is now working to bring the well back on line while carefully allowing pressure to increase so as to determine the new optimal flow rate.

"Perhaps more significantly, and following the failure of last year's workover, it was satisfying to have oil and gas recovered from TLP-102. The team is now fully engaged in deciding how best to bring the well into sustained production. Critically, however, a reservoir is now proven on the opposite side of the fault from TLP-101, and TLP-102 should now provide a further source of revenue for the Company."

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

**ENDS**

For further information please visit www.aaog.co or contact:

 
 Anglo African Oil & Gas plc                       Tel: c/o St Brides 
                                                    Partners +44 20 
                                                    7236 1177 
 David Sefton, Executive Chairman 
  James Berwick, Chief Executive Officer 
 
 finnCap Ltd (Nominated Adviser and Broker)        Tel: [phone] 
                                                    0500 
 Christopher Raggett, Giles Rolls, Anthony Adams 
  (Corporate Finance) 
 Emily Morris (Corporate Broking) 
 
 St Brides Partners (Financial PR)                 Tel: [phone] 
                                                    1177 
 Frank Buhagiar, Hugo de Salis 
 

Notes to Editors

Anglo African Oil & Gas (AAOG) is an AIM-listed independent oil and gas company that owns a 56% stake in the producing Tilapia oil field in the Republic of the Congo. The Company boasts a low-cost production story in a prolific hydrocarbon region with significant exploration upside, differentiating it substantially from its E&P peers. Additionally, management's remuneration is tied to hitting production milestones, reflecting their strong focus on cost control.

Tilapia has an excellent location, being located close to multi-billion-barrel fields that include the ENI-operated Litchendjili field and the 5,000bopd Minsala Marine field. Tilapia currently produces approximately 38 bopd from two near-surface intervals. It has an undeveloped discovery in the lower Mengo sands with gross contingent resources of 8.1m barrels and a deeper exploration prospect, with gross prospective resources of 58.4m barrels, in the productive Djeno interval from which the adjacent Minsala field produces.

This information is provided by RNS

The company news service from the London Stock Exchange

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April 17, 2018 02:01 ET (06:01 GMT)