24th Oct 2018 09:49
LONDON (Alliance News) - Anglo African Oil & Gas PLC on Wednesday said it has secured a new GBP5 million debt facility, as work on a well in the Republic of the Congo continues on track.
Anglo African has agreed a convertible loan note with Sandabel Capital LP, worth up to GBP5 million, which can be drawn at any time over the next year.
Earlier October, the company spudded TLP-103C on the Congo's Tilapia oil field. The first section has now been drilled successfully, it said, with the second section now started.
The well, Anglo African continued, did not find any of the shallow, unconsolidated formations found by the previous TLP-103 well.
Work is on schedule, and Anglo African hopes to reach all of the principal targets by the end of November.
Further, the drilling contractor has agreed to keep the current rig being used on site for the next well, TLP-104, of its drilling programme, bringing "significant" cost savings.
Executive Chairman David Sefton said: "I am very pleased the drilling of TLP-103C continues to proceed well, and in particular that the geological conditions are as expected in the geological model and drilling plan.
"The team are making excellent progress and it will not be long before the initial results will be known."
He added: "I am also pleased Societe de Maintenance Petroliere has agreed in principle to keep its rig on site and work with us on TLP-104."
"It is also positive we have been able to finalise a financing facility in line with the terms previously disclosed and, in particular, that the company has been able to secure debt finance without the need to issue warrants and, furthermore, with the flexibility that will likely allow some of this facility to be repaid as conventional debt."
Shares were down 12% on Wednesday at a price of 9.16 pence each.
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