Anglo African Oil & Gas PLC (LON:AAOG) has raised gross proceeds of £6.0mln through a share placing to provide the funds required to complete the drilling of well TLP-103C at its Tilapia field in the Republic of the Congo.
The independent oil and gas developer, which saw its shares rise on Monday after it confirmed multiple discoveries from the TLP-103 well, said it has placed 60mln new ordinary shares with investors at a price of 10p each.
In late morning trading, Anglo African O&G shares were trading at 11.30p, up 0.9% on Tuesday’s close.
The group said, aside from providing the funds required to complete the drilling of well TLP-103C, the cash raised will also allow it to conduct due diligence over potential acquisition opportunities.
Anglo African O&G told investors on Monday that Schlumberger wireline logging of the recently drilled TLP-103C measured a column with a total of 44 metres of oil – with 26 metres in the Mengo reservoir – its primary target, 13 metres in newly found horizons between the R3 and the Mengo, and, 5 metres in the R2 reservoir.
In today’s placing statement, David Sefton, Anglo African O&G’s executive chairman said: "We remain extremely excited about the potential for TLP-103C. The confirmation of oil in multiple reservoirs, and with greater aggregate oil columns than expected, should with positive results from further testing, enable the Company quickly to effect a material increase in production and cashflows.
“However, we are currently drilling towards the Djeno and a success there could prove even more significant than the excellent results achieved so far in the R2 and the Mengo. We hope to be in a position to announce initial results on the Djeno before the end of this month.”
Sefton also made clear that the placing replaces the capital that was available to the company under the Sandabel Capital loan facility that has now been cancelled.
He concluded: "This Placing therefore marks a line in the sand for the funding of the TLP-103C well and we look forward to providing further updates on its progress in due course."