Anglo African resumes work at Tilapia asset

26th Nov 2018 11:29

(Sharecast News) - 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.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.