Anglo African Oil & Gas provides operational update regarding Tilapia field
LONDON -- Anglo African Oil & Gas plc, an independent oil and gas developer, has provided an update on activities with regards to the development of the producing Tilapia oil field in the Republic of Congo.
The Company is solely focused on unlocking the potential of Tilapia, which, in addition to the currently producing horizon of R1/R2, has an undeveloped discovery in the Mengo horizon and exploration potential in the Djeno horizon. Plans have advanced with respect to drilling a new well, TLP 103, which will target production from R1/R2 and the Mengo horizon and will appraise the potential from the Djeno horizon. In addition, the operations team continues work to optimize production from the existing TLP 101 and TLP 102 wells.
TLP 103
Following a detailed evaluation and tender process, the operations team has received all relevant tender submissions and has identified its preferred rig contractor. The Board expects to conclude negotiations with all contractors by mid-August.
AAOG's preferred contractor has confirmed that its rig is available for use by the Company to drill TLP 103 by September 30th, which drilling is expected to take around 45 days.
The rig meets the specification requirements to drill TLP103, and is already located in the Republic of Congo, in close vicinity to Pointe Noire, which reduces mobilization and demobilization costs.
Further, after technical evaluation, the Company has decided to use fishbones technology to stimulate and complete the Mengo horizon in TLP103. Fishbones technology uses a large number of small diameter lateral jets or drills from the wellbore to penetrate the reservoir and stimulate production. It is ideally suited to the tight formations that are experienced in the Mengo and is more cost-effective and controllable than the alternative of a one-off conventional frac.
In tandem with the above, the Company remains focused on optimizing production from TLP 101 and TLP 102.
TLP101
Initially, it was considered that the installation of a pump would increase production. After physical inspection of the wellhead, which included stripping the choke wellhead, and inspection of the flow lines back to the separator, it was discovered that there were significant amounts of detritus material in the line, which could be causing or contributing to the low production. It is also thought that the detritus could extend 300 m below the wellhead. The Company, therefore, decided not to install the pump but instead resolve the issue of detritus material as a means of increasing the flowrate.
Samples of this material were sent to a UK laboratory for analyses, which have proved that the material is 90% organic with a 25%-40% wax content. The Company has determined that the solution for this is to remove as much of the material as possible and then circulate the well, wellhead and flow lines with a toluene solution, under which, in laboratory conditions, the material has reacted and remained in solution. This is an operation which could be completed by the end of August.
TLP 102
As previously announced, the Company re-perforated TLP 102, albeit without achieving production. The well data has confirmed the presence of hydrocarbons and pressure within both of the shallower R1 and R2 horizons. Based on analysis of the data acquired from a pulse neutron neutron log prior to the re-perforation exercise, the Company has determined that the confirmed existence of producible hydrocarbons merits further mechanical intervention to bring this well into production. This further intervention necessitates the use of either the drilling rig used for TLP 103 to re-enter and stimulate the reservoir using fishbones technology or a coiled tubing unit and will therefore take place later this year when equipment is mobilized to drill TLP 103.
Secondary completion
The Company has concluded all relevant submissions in relation to the completion of the acquisition of the remaining 49% of Petro Kouilou S.A., the owner of a 56% interest in the Tilapia field. As previously announced, the Company has received the consent of Petro Kouilou's partner in Tilapia, Société Nationale des Pétroles du Congo, to this acquisition and importantly, has now also received the consent of the Congolese Ministry of Hydrocarbons. There now remain only a few outstanding technical conditions precedent to Secondary Completion, which the Company expects to be satisfied in the coming days. The Company will make a further announcement in due course.
