Anglo African Oil & Gas Share Discussion Threads

[pro_s2009] 07/9/2018 07:05

Re-spud





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

Update on TLP 103 well on Tilapia field

Anglo African Oil & Gas plc, the independent oil and gas developer, provides the following update on the TLP 103 well and also details of a forward plan to minimise disruption to the drilling programme at the Tilapia field in the Republic of the Congo.

On 15 August 2018, the TLP 103 appraisal well was spudded using the SMP 102 drilling rig. Whilst drilling through the shallow section a number of drilling challenges were encountered, caused by localised geological conditions, which resulted in ground movement that impacted the safe operation of the rig. Initial inspections show no damage to the rig. The events occurred before the well had reached any of the target horizons. After a number of attempts to overcome this problem it was jointly decided by SMP (the drilling contractor) and AAOG to cease drilling, abandon the current location and move the rig 100 metres to the north west and re-spud the well. The process to prepare the new location, move the rig and re-spud the TLP 103 well is expected to take approximately 25 days. Following the re-spud it is expected that drilling will take 64 days to complete.

In addition to contingencies in the drilling budget and potential offsets and claims under insurance policies, the Company has available to it offers of debt finance sufficient to meet any cost overruns due to the delay and need to re-spud.

The Company remains committed to drilling TLP-103.

[supercity] 07/9/2018 07:04

There you have it - ground movement causing instability of the rig so they moved it along a bit, hardly warranted the drop in price

[ih_616644] 07/9/2018 04:53

I too bought the dip here and remain optimistic about the future. 100% gains are in the cards, amigos.

[thamestrader] 07/9/2018 01:55

Where will AAOG recover delay costs?

Depends on the nature of the contract, something i do not know. And who, if anyone, is deemed to be at fault/negligent, etc., yet another thing i do not know.

If it’s a turnkey contract, AAOG will be paying SMP a fixed lump sum for the well (probably per section/milestone) regardless of duration, so SMP cover the rig delay cost. The delay costs AAOG the value of other services, eg., SLB and their own management and support costs, plus the loss of oil production while this and other wells are shut in.
SLB may or may not be on a similar lump sum contract.
There will be clauses to cover payments (or not) during suspension and Force Majeure events, which this may or may not be.

If it’s a day-rate contract, they pay by the day, so the rig sitting idle costs AAOG money every day, albeit probably at a reduced rate, unless the failure/suspension/force majeure clauses enable them to stop paying SMP. But other costs and lost/delayed production will also still hit AAOG.

[honestmarty] 06/9/2018 21:09

Fairly solid posting elsewhere that Mr Berwick is on-site and we'll get an update in the morning.

As long as he has a solution, I see a big rise on the cards.

Hopefully an end to the deramping

[pro_s2009] 06/9/2018 20:59

So yes, looks like news in the morning.

[money4me] 06/9/2018 20:57

maybe they can drill the hole a few feet away. i dont know what problems can occur 'top side' but does that affect the oil below? just a delay hopefully. but why do these things keep happening to AAOG

[honestmarty] 06/9/2018 20:49

Ron, we don't know what the issue is,

Idiots are posting fantasy suggestions or crying doom and gloom.

Why not just wait?

Good chance of a positive update, easiest 25% you could make

Or lose!!!

[ronwilkes123] 06/9/2018 20:38

Finally sense - why did you buy the dip How do you define serious - what is the issue

[honestmarty] 06/9/2018 20:30

A few observations.

Progress was slower than expected, has there been a problem with the rig from the start.

AAOG have decided to halt drilling temporarily, so it could have continued drilling? Were they worried that if the problem worsened the well could be damaged, or at greater depth would the problem worsen?

The RNS defines the debate as relating to solutions, suggests the problem is known, why haven't they told us yet. Suggests to me it is serious, and they want to release it with a solution and schedule?


Just my thoughts, I bought the dip.

[ronwilkes123] 06/9/2018 19:29

Though if James can turn this round he'll soon be forgiven

[ronwilkes123] 06/9/2018 19:23

Still holding buddy - dabbling with this now a littleI advise not getting involved here dunder - the ceo James Berwick seems a calamity waiting to happen

[dunderheed] 06/9/2018 19:16

Ronald - what the hell happened to your AEX purchases buddy?

[ronwilkes123] 06/9/2018 19:12

If schum are nothing to do with this - who are aaog going to claim cost overruns from

[ronwilkes123] 06/9/2018 18:44

I notice a lot are claimingShifting sands - only schums are not liable for that - whoops

[dandadandan] 06/9/2018 18:31

Get ready for a news release tomorrow morning.

Fixing solution found and Rig being glued back together ( metaphorically).

That expert Rig person is under starters orders for a fast FIX solution.
Also keep an eye open on the 'fishbones' in the drill?

(Get that stabilizing floating foam platform ready on those shifting sands???
The market has got the shakes, just like the Rig. Tweet, Tweet...).

Back on track very soon, is the market word.....
Keep watching.....

GLA.

[ronwilkes123] 06/9/2018 17:21

I have always enjoyed your posts

[aaogplc] 06/9/2018 16:44

Wise words indeed

[pro_s2009] 06/9/2018 15:59

Good........lets hope the update is positive.

[jonnyfro] 06/9/2018 15:57

Thanks Jonathan, I am meeting with the drilling contractor this morning and hope to release some news tomorrow. JFrom jb this morning

[pro_s2009] 06/9/2018 15:54

SP stabilised as expected today.

[ronwilkes123] 06/9/2018 15:29

Still nothing sigh

[ronwilkes123] 06/9/2018 14:28

Be wary of those telling you the issue is nothingNothing NOTHING has been released stating what the issue isThis issue could sink aaog