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Completes acquisition of a 56% interest in the producing Tilapia oilfield

04 August 2017

Anglo African Oil & Gas plc, an independent oil and gas developer, is pleased to announce that "Secondary Completion" of the acquisition of Petro Kouilou S.A. ('Petro Kouilou' or 'PK') has now taken place and AAOG is the legal and beneficial owner of 100 per cent of the issued share capital of PK. Petro Kouilou is the operator and holder of a 56 per cent interest in the producing Tilapia oilfield ('Tilapia'), located in the Republic of the Congo, alongside Société Nationale des Pétroles du Congo ('SNPC'), which holds the remaining 44 per cent.

On 15 March 2017, the Company announced the "Initial Completion" of a 49 per cent interest in the issued share capital of PK for a cash consideration of US$2.5 million from Sister Holding S.A.S ("Sister"). At the time, AAOG retained the right to acquire the balance of the shares in PK via the "Secondary Completion". This was subject to a number of conditions, all of which have now been satisfied.

Accordingly, and as further described in paragraph 11.16 of Part VIII of the Company's Admission Document, Sister has now exercised Warrants issued to it on Initial Completion. Pursuant to such exercise, the Company has today issued to Sister 16,354,015 ordinary shares of five pence each in the capital of the Company ("Ordinary Shares") at a price of twenty pence per Ordinary Share. As a result of such issuance, Sister now holds 23.529 per cent of the Company's issued share capital.

In anticipation of Secondary Completion, and as announced on 24 July 2017, the Company has already commenced a multi-well programme focused on unlocking the potential of Tilapia, which in addition to the currently producing horizon of R1/R2, has an undeveloped discovery in the Mengo horizon and exploration potential in the deeper Djeno horizon.

In line with this, the Company is completing the tender process with respect to drilling a new well, TLP 103, which will target production from R1/R2 and the Mengo horizon and will appraise the potential from the Djeno horizon. The rig is due on site by 30 September 2017 and drilling TLP 103 should take approximately 45 days to complete.

David Sefton Executive Chairman of AAOG said, "AAOG now owns 100 per cent of Petro Kouilou and thereby 56 per cent of Tilapia, an oil field which, being located in a highly prolific hydrocarbon region, has an excellent location. From the outset, our objective has been to scale up production and reserves at Tilapia through the development of existing producing reservoirs and the Mengo, a proven discovery, and then to assess the prospect of producing from the potentially high-impact Djeno horizon. We have a defined and fully funded work programme already underway, which is being managed with due care with respect both to operational performance and costs. In carrying out this programme, we will continue to work closely with our partner SNPC as we look to deliver on our objectives through the rest of the year."

Voting Rights and Admission

Application has been made for the 16,354,015 Ordinary Shares issued to Sister (the "Secondary Completion Shares"), which will rank pari passu with the existing Ordinary Shares, to be admitted to trading on AIM ('Admission'). It is expected that Admission will become effective and dealings will commence at 8.00 a.m. on 9 August 2017.

Following Admission, the total issued share capital of the Company will consist of 69,504,565 Ordinary Shares. The total number of voting rights in the Company will be 69,504,565 Ordinary Shares. This number may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

 

For further information please visit www.aaog.co or contact:

Anglo African Oil & Gas plc Tel: c/o St Brides Partners
+44 20 7236 1177
David Sefton, Executive Chairman  
Alex MacDonald, Chief Executive  
   
finnCap Ltd (Nominated Adviser and Broker) Tel: +44 20 7220 0500
Christopher Raggett, Giles Rolls, Anthony Adams (Corporate Finance)  
Emily Morris (Corporate Broking)  
   
St Brides Partners (Financial PR) Tel: +44 20 7236 1177
Frank Buhagiar, Olivia Vita  

 

Notes to Editors

Anglo African Oil & Gas (AAOG) is an AIM-listed independent oil and gas company acquired a 56 per cent stake in the producing Tilapia oil field in the Republic of the Congo. The Company boasts a low-cost production story in a prolific hydrocarbon region with significant exploration upside, differentiating it substantially from its E&P peers. Additionally, management's remuneration is tied to hitting production milestones, reflecting their strong focus on cost control.

Tilapia has an excellent address, being located close to multi-billion-barrel fields that include the ENI-operated Litchendjili field and the 5,000bopd Minsala Marine field. Tilapia currently produces approximately 38 bopd from two near-surface intervals. It has an undeveloped discovery in the lower Mengo sands with gross contingent resources of 8.1m barrels and a deeper exploration prospect, with gross prospective resources of 58.4m barrels, in the productive Djeno horizon from which the adjacent Minsala field produces.

 

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