Anglo African Oil & Gas completes purchase of Congo's Petro Kouilou

Anglo African Oil & Gas announced on Friday completion of the purchase of Petro Kouilou from Sister Holding S.A.S..

The independent AIM-listed company said it now owned 100% of the issued share capital of Petro Kouilou, the operator of the Tilapia oil field in the Republic of Congo in which it also had a 56% interest.

Société Nationale des Pétroles du Congo held the remaining 44%.

On 15 March, Anglo African announced an initial purchase of a 49% interest in the issued share capital of Petro Kouilou for a cash consideration of $2.5m.

As part of the same transaction, Anglo African issued Sister 16.35m warrants, giving it a 23.53% stake in the company.

In anticipation of Friday's transaction, on 24 July Anglo African said it had commenced a multi-well programme focused on unlocking the potential of Tilapia, which in addition to the currently producing horizon of well R1/R2 has an undeveloped discovery in the Mengo horizon and exploration potential in the deeper Djeno horizon.

Linked to that announcement, the outfit said it was completing the tender process with respect to drilling a new well, TLP 103, which would target production from R1/R2 and the Mengo horizon and appraise the potential from the Djeno horizon.

The rig was due on site by 30 September 2017 and drilling TLP 103 should take approximately 45 days to complete, the company said in a statement.

Application had been made for the new 16.6m ordinary shares resulting from the secondary completion to be admitted to trading on AIM, with first dealings expected on 9 August.

Following admission, the total issued share capital of the company will consist of 69.5m ordinary shares.

At 09:35 BST, shares in Aim listed Anglo African Oil & Gas were up 10.34% to 24.00p each.