AAOG – Placing to raise £7.4 million at an issue price of 8p per share

17 May, 2018 – Anglo African Oil & Gas plc (AIM: AAOG), an independent oil and gas developer, is pleased to announce that it has conditionally raised total gross proceeds of approximately £7.4 million by the conditional placing of 92,551,459 New Ordinary Shares (the “Placing“) at an issue price of 8 pence per New Ordinary Share (the “Issue Price“) to new and existing institutional and other investors.
 
Highlights
 
·    Placing to new and existing institutional and other investors to raise gross proceeds of approximately £7.4 million;
 
·    The Placing has been undertaken to enable AAOG to fund the entire cost of drilling the multi-horizon TLP-103 well at its 56% owned Tilapia field (“Tilapia“) in the Republic of the Congo, including its partner SNPC’s share of drilling and workover costs – not budgeted for on listing (c.US$4 million)
 
o  SNPC’s unpaid costs are recoverable from production revenue
 
·   The Directors believe that it would be potentially transformational for AAOG if it could complete the drilling programme on the TLP-103 well, and successfully commence extracting oil from the Mengo Sands and the Djeno Sands, two deeper horizons which are both prolific producers on nearby fields;
 
·     The Placing is subject to the passing of an ordinary resolution, at the General Meeting;
 
·   Sister Holding SAS (“Sister“) has made clear that it does not support the proposed Placing. For the avoidance of doubt, the Board wishes to make clear that it has examined, and discussed in detail, numerous alternative funding options and is convinced that an equity fundraise represents the best solution for the benefit of all its Shareholders. Sister has been offered the chance to participate in any equity fundraising on several occasions. Sister has requested anti-dilution protection for its shareholding and the Company has refused to provide this. Sister has declined to participate in the proposed Placing; and
 
·     A circular to Shareholders in respect of the Placing (the “Circular“) is expected to be posted later today giving notice of the General Meeting to be held on 4 June 2018 at 11.00 a.m. at the offices of finnCap Ltd. A copy of the Circular will be available on the Company’s website at www.aaog.co
 
David Sefton, Executive Chairman of AAOG, said:
 
The level of support received from existing and new investors validates our view that Tilapia is a valuable asset for the Company. By having the flexibility to bear, if needed, the entire cost of TLP-103, we can now move forward and drill this new well over the summer, continuing the positive operational momentum generated in recent months following the arrival of the new CEO, James Berwick, and his team. Success at TLP-103 will be transformational for the Company.”
 
Full announcement at www.aaog.co