Anglo African Oil & Gas earmarks April for new well production

Anglo African Oil & Gas on Wednesday reported that production is scheduled to commence in April at its TLP-103C well, at the Tilapia licence in the Republic of the Congo.

The well has an initial anticipated aggregate flowrate in excess of 1,500 barrels of oil per day (bopd) for the first 14-18 months and is expected to generate cash flow of $1m per month, with the project able to break-even even if oil prices drop to $20 per barrel.

Following the initial period, the AIM traded company expects to see a long-term production profile of approximately 400 bopd.

David Sefton, Executive Chairman of AAOG, said: "We are excited by this funded plan for TLP-103C and are working hard to bring the Well into production as soon as possible. The development schedule is predicated on the availability of Schlumberger's fracking equipment which we have been informed will be available in the beginning of April."

Works to bring the well to production will be funded from existing cash resources and the company described the move as a step towards the board's "long-stated desire" to become cashflow positive as quickly as possible.

"Bringing TLP-103C into production is the key to realising the value that we believe has been unlocked by the very successful results from the well," said Sefton.

Anglo African Oil & Gas' shares were up 0.85% at 10.39p at 1554 GMT.