released the details of its plan to bring TLP-103C at its Tilapia licence in the Republic of the Congo into production in April.
It anticipates that the well will provide an aggregate flow rate of over 1500 barrels per day for the first 14-18 months, followed by a long-term production of approximately 400 barrels a day.
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.”
Due to the breakeven oil price of $20 per barrel, it expects a monthly net free cash flow of approximately $1 million. It is to fund the completion of the well with existing cash resources.
Mr. Sefton added: “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. With production rates of up to 1,500 bopd expected, TLP-103C will provide considerable cashflow for the Company of approximately US$1 million net per month.”
The fracking equipment from Schlumberger is due to arrive in the Congo in April. Anglo African Oil & Gas told investors it was encouraged by the progress it is making on negotiations to renew the Tilapia licence, after receiving a letter of intent to re-award from the government to extend the licence to 2040.
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