Zenith Energy inks agreement to buy 80% interest in Anglo African Oil & Gas plc subsidiary
BAKU, Azerbaijan, Dec. 27
By Leman Zeynalova - Trend:
Canada’s Zenith Energy Ltd. has signed a conditional share purchase agreement (SPA) with AIM quoted Anglo African Oil & Gas plc (AAOG) for the acquisition of an 80 percent interest in AAOG's fully owned subsidiary in the Republic of the Congo, Anglo African Oil & Gas Congo S.A.U (AAOG Congo), Trend reports citing Zenith Energy.
Zenith will enrich, as well as diversify, its asset portfolio by completing its first African acquisition in the form of a highly prospective oil production and development asset.
Following Completion of the Acquisition, Zenith will own 80 percent of AAOG Congo which has a 56 percent majority interest in, and is operator of, the Tilapia oilfield in the Republic of the Congo (the License). The remaining 44 percent is held by the national oil company, Société Nationale des Pétroles du Congo (SNPC).
The License is located in the Lower Republic of the Congo Basin, West African Atlantic Margin, which extends from Gabon down to Angola, a prolific hydrocarbon region in which certain individual wells have recorded production rates of up to 5,000 barrels of oil per day. It is situated 1.8km offshore and entered into production in 2008. Having been drilled from onshore, there is no requirement for offshore drilling equipment. Oil storage and processing facilities are a 45-minute drive from Point Noire and 17km from the nearest refinery.
Major operators including Eni, SOCO International and Oryx operate in neighbouring fields producing from the Djeno horizon with production rates of between 1,000 to 5,000 barrels of oil per day from individual wells.
AAOG Congo currently produces approximately 30 barrels of oil per day.
SNPC owes AAOG Congo approximately $5.3 million as a result of the work conducted to date on the License. Zenith has met with SNPC and expects to obtain the full repayment of the aforementioned amount. Upon completion of the Acquisition and repayment of the credit by SNPC, Zenith will retain 80 percent of the aforementioned amount.
Zenith intends to begin preparations for drilling activities in well TLP-103C as soon as it assumes operational control of the License.
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