The company and the government will now work together to finalise the terms of a new Production Sharing Contract (‘PSC’) for the new Tilapia licence.
Importantly, the company has been informed through the letter that the New Licence will have a 25-year period and that PK will retain its current 56% interest in Tilapia.
David Sefton, Executive Chairman, commented: “This is excellent news for the Company. The confirmation that we will receive a new licence represents a major milestone for AAOG and follows hard work by James Berwick and the team through a period of extensive negotiation with the Government and the completion of a due diligence review of AAOG by the Ministry.
“We view the renewal, on extended terms, as an endorsement of AAOG’s team and the work we have carried out to date. Renewal of the Licence has always been a critical step in enabling us to put in place plans to maximise production, cashflow, and value from Tilapia. Following finalisation of the PSC, we will accelerate our development plans in order to generate significant cash flow and value for all stakeholders.
“We have long believed in the potential of Tilapia. This potential was demonstrated by the excellent results of the recent TLP103C well. Notably, the well encountered oil shows in all target horizons, including the Djeno Sands, which flows at rates of up to 5000 bpd per well on neighbouring fields. We continue advanced work on enhanced production and the full development of Tilapia.”
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/01052019/anglo-african-oil-gas-offered-licence-for-tilapia-oilfield/
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