Appraisal of Ntorya

RNS Number : 3703T

Solo Oil Plc

19 November 2013

 

For Immediate Release

19 November 2013

SOLO OIL PLC

("Solo" or "Company")

Appraisal of Ntorya, Tanzania

Solo today announces the start of the infill seismic survey planned to assist in the appraisal of the Ntorya discovery and to finalise locations for future exploration drilling in the Ruvuma onshore Petroleum Sharing Agreement ("PSA") in Tanzania.

The operator, Ndovu Resources Limited, a subsidiary of Aminex plc ("Aminex") has indicated that a contract has been signed with AGS and that the survey will shortly commence with 2D seismic data intended to be collected at Ntorya and to support future exploration drilling.  The seismic data is the first step in the agreed appraisal campaign that is expected to lead to further drilling and the submission of a field development plan within two years.  The proximity of the 36 inch gas pipeline being currently constructed from Mtwara to Dar es Salaam is a significant commercial driver to this development.

As previously announced on 8 July 2013 an appraisal licence has been issued by the Tanzanian Government covering the Ntorya discovery.  The 760 square kilometre licence covers the Ntorya-1 well, drilled in 2012, which discovered a gross 25 metres sandstone interval.  Independent reserves assessments are a gross discovered volume of 178 billion cubic feet (bcf) and an approximate additional 1 trillion cubic feet (tcf) of unrisked potential gas in place.  The well flowed over 20 million cubic feet per day on a 1" choke (equivalent to over 3,000 barrels oil per day) and also produced 53 degree API condensate at a rate of 139 barrels per day. 

Unrisked prospective resources of over 5 tcf have been independently estimated in known prospects and leads and it is intended that the additional 2D seismic data will be used to select future drilling locations.  Aminex and Solo are concurrently looking for a farm-in partner to participate in the future development and appraisal of the Ruvuma PSA.  To date no farm-in offer of sufficient value has been obtained and it is hoped, based on feedback from interested parties, that further seismic data will assist in the farm-out process.

Participants in the Ruvuma PSA are currently; Ndovu Resources Ltd (Aminex) 75% (operator) and Solo Oil Plc 25%. The above volumes, flowrates and resources are stated gross.

Solo Executive Director, Neil Ritson, commented:  "Whilst only the first step in a process; the seismic data is vital to any future development of Ntorya and we are delighted that this phase is now underway.  The onshore Ruvuma basin remains largely overlooked whilst the main focus has remained the offshore Ruvuma; however, the proven presence of gas condensate and the ease of selling that gas into the Dar es Salaam market makes this area unique and we are confident that the additional work being undertaken will greatly assist us and any potential partners to accelerate the commercial development."

Competent Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Solo Oil Plc who has over 35 years of relevant experience in the oil industry.  Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.

For further information:

Solo Oil plc David Lenigas Neil Ritson	[phone]
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish	[phone]
Old Park Lane Capital Plc Joint Broker Michael Parnes Shore Capital Joint Broker Pascal Keane Jerry Keen (Corporate Broker) Pelham Bell Pottinger                             Public Relations Mark Antelme Henry Lerwill	[phone] [phone] [phone]

 

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