12th Dec 2019 12:25
(Alliance News) - Anglo African Oil & Gas PLC on Thursday said that the planned drilling of TLP-103C-ST well in Congo is on hold due to missing payments of more than USD5.3 million from partner Societe Nationale des Petroles du Congo and unavailability of a drilling rig until June 2020.
Shares in Anglo African Oil were 68% lower at 0.73 pence per share in London.
The oil & gas developer stated that it has identified two potential rig options that will be available earlier than June 2020.
Anglo African said it is is taking steps to reduce costs and reviewing financing options due to non-repayment of the required payments from the Congolese authorities.
"The company has formally requested the Oil Minister to coordinate a meeting in January with SNPC and AAOG to resolve this highly unsatisfactory situation so that the work programme, or a modified plan, can proceed," Anglo African said.
Elsewhere, the company said it is negotiating with Anglo Tunisian Oil & Gas Ltd to recover costs incurred in relation to the abandoned acquisition of some oil-producing fields in Tunisia. The company said that mediation was unsuccessful and it will therefore pursue legal proceedings in the Paris courts with the next procedural hearings set for February 5, 2020.
In July, the company announced a proposal to acquire some Tunisian oil fields. It, however, had to abandon the deal due to lack of support from its shareholders.
Anglo African subsequently found out that the Tunisian licences were acquired by Anglo Tunisian Oil & Gas Ltd, a company of which Anglo African Chief Executive James Berwick is a director and significant shareholder. As a result, Anglo African sought to recover costs incurred in relation to the abandoned Tunisian deal from Anglo Tunisian Oil.
By Ife Taiwo; [email protected]
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