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Anglo African Oil & Gas proposes fundraise to re-enter Tilapia field

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Oilfield Technology,

Anglo African Oil & Gas plc has received commitments to raise up to £8.25 million through the issuance of new ordinary shares of 5 pence each in the capital of the company at a price of 5.2 pence per ordinary Share. The fundraising will provide the company with the funds required to re-enter the TLP-103C well at its Tilapia field in the Republic of the Congo with a view to producing oil from the Djeno horizon.

The fundraising comprises:

  • a commitment from existing institutional investors in the company to subscribe for 52 288 347 Ordinary Shares by way of a placing at the Issue Price; and
  • a signed term sheet between the company and European High Growth Opportunities Securitization Fund pursuant to which the investor will subscribe for not less than 106 331 011 new ordinary shares at the issue price. Pursuant to the term sheet the proceeds of the subscription will then be applied towards the entry into an equity sharing agreement.

The fundraising and issuance of the placing shares and subscription shares are subject to finalisation of binding legal documentation between the company and the relevant investors. Further, the fundraising shares are the only shares that will be issued in connection with the fundraising and are all being issued at the same price; there is no convertible instrument, warrant or option being issued.

It is intended that the issuance of the fundraising shares will be made from the authorities already granted to the directors of the company at the annual general meeting held on 28 June 2019. The company has every confidence of completing the fundraising and will make a further announcement in due course.

David Sefton, Executive Chairman of AAOG, said: "It has been our goal since inception to produce oil from the potentially prolific Djeno horizon. Technical analysis of the well data and the oil that has subsequently come to surface has led to a revision of the operational plan such that we will now re-enter the Djeno in 103C and seek to produce from it. Once completed, this fundraising will enable us to achieve this. We are grateful for the support shown and look forward to completing the fundraising very soon."

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