Anglo African resumes work at Tilapia asset
Anglo African Oil & Gas
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11:49 04/05/21
Oil and gas developer Anglo African has resumed drilling at its TLP-103C well site in the Republic of the Congo following repairs to the project's contracted drill rig.
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Repairs to the asset began after an unscheduled inspection by Anglo African led to a temporary suspension of operations.
Drilling resumed with repaired and reconditioned parts at a depth of 660 metres, with the company now expecting the well to reach target depth by mid-December.
Anglo African also highlighted that drilling contractor SMP had taken all responsibility for the delay, noting it was "entirely their fault" and agreed to pay AAOG compensation for a "substantial amount" of its additional costs.
Executive chairman David Sefton, said: "This delay has been extremely frustrating not only for the company but, more importantly, for its shareholders."
“However, it was clearly the right decision for AAOG to insist on a suspension of drilling pending these repairs rather than risk a serious incident should those parts have failed when intersecting a target horizon."
In a separate statement, AAOG noted that over the weekend it became aware of a "short position" in its shares at Sandabel, which had previously provided an unsecured convertible loan to the AIM-listed firm.
As a result, AAOG negotiated with Sandabel to convert £750,000 of unsecured loan notes at a conversion price of 6.3p.
As of 1130 GMT, Anglo African shares had climbed 6.06% to 7p.