Anglo African Oil & Gas confirms 'fantastic' discoveries at Congo project

7th Jan 2019 13:13

(Sharecast News) - Anglo African Oil & Gas plummeted on Monday despite a "fantastic" series of discoveries at its Tilapia licence in the Republic of the Congo.Schlumberger wireline logging at the AIM traded company's recently drilled TLP-103C well measured a total of 44 metres of oil column with 26 metres in the primary target Mengo reservoir, 13 metres in newly found horizons between the R3 and the Mengo and 5 metres in the R2 reservoir.A statement from AAOG said that tests showing that the R2 reservoir is not depleted confirms that an onshore hydrocarbon system underlies the Tilapia area.David Sefton, executive chairman of AAOG, said: "The confirmation of a combined 44 metres of oil columns across multiple horizons, including the discovery of additional reservoirs is a fantastic result for the company and exceeds our expectations. Subject to the results of flow testing, the well has the potential to provide AAOG with a major step-up in production and cashflow."Consequently, Sefton stated that TLP-103C "has the potential to be truly transformational for AAOG" when targeting the deeper Djeno horizon, based on the production rates achieved from this reservoir on neighbouring fields."With operations on-going and the resumption in production at well TLP-101, which is estimated to have the ability with water injection to produce up to 400 bopd, these are exciting times for the company and the board believes AAOG is on track to become the highly cash generative oil and gas company we set out to build," said Sefton.AAOG's shares were down 28.99% at 11.75p at 1619 GMT.