Anglo African Oil secures Congo drilling rig for September

Independent oil and gas developer Anglo African Oil and Gas announced on Monday its intention to focus on unlocking the potential of the Tilapia oil field in the Republic of Congo.

Plans had advanced with respect to drilling a new well, TLP 103, which is expected to target production from the proven oil sands at its R1 and R2 sections, as well as from the Mengo discovery and appraise potential from the Djeno sands.

The AIM-listed company confirmed that has secured a nearby rig to drill TLP 103 by 30 September and drilling would be expected to take around 45 days.

The board said it expected to conclude negotiations with all contractors by mid-August.

After a technical evaluation, the company also stated it had decided to use the rig with 'Fishbones' fracking technology to stimulate the tight formations of the Mengo horizon, a technology that is considered more cost effective and controllable than the alternative of a one-off conventional frack.

The company said it had determined that confirmed existence of producible hydrocarbons merited further mechanical intervention to bring the TLP 102 well into production, and that further intervention necessitated the use of either the drilling rig used for TLP 103 to re-enter and stimulate the reservoir.

Corporate wise, the company said it was committed to maintaining tight control over costs and general corporate overheads, and that the remuneration of the board and management was tied to ambitious production targets and that the team remained confident that these would be met in due course.

David Sefton, executive chairman of AAOG, said: "Notwithstanding short-term delays, we continue to execute the plan as set out in our admission document. Phase 1, which involves maximising production from proven horizons via the low-cost workover of two existing wells, is already underway"

"While doing this, we also continue to pay close and careful attention to both running costs and the cost of drilling to ensure that both remain within budget and that in the case of the former they are kept to a minimum pending an increase in production"

"In addition to targeting proven reserves in the R1 and R2 sands as well as the Mengo discovery, this well will test the Djeno sands, a highly prolific interval in neighbouring licences. As a result, this new well has the potential to transform AAOG's production and reserves profile and we are looking forward to realising Tilapia's full potential".