Farm-out Update, Ruvuma Basin, Tanzania

RNS Number : 7442R

Solo Oil Plc

22 November 2012

 



For Immediate Release

22 November 2012

Solo Oil Plc

("Solo" or "the Company")

Farm-out Update, Ruvuma Basin, Tanzania

Solo Oil today announces that First Energy Capital LLP ("First Energy") have commenced marketing the farm-out of the Company's oil and gas assets in the Ruvuma Basin in Tanzania in collaboration with Aminex plc. 

Expressions of interest from potential partners to acquire up to 50% interest in the licences by funding a disproportionate share of the planned forward work program and paying a pro-rata share of past expenditures are being called for by February 2013.

The opportunity is summarised by First Energy as follows:

QUOTE

Aminex PLC ('Aminex') and Solo Oil plc ("Solo") ("the Companies"), two independent, publicly listed oil & gas companies with exploration and development assets in the emerging hydrocarbon province of East Africa, have engaged FirstEnergy Capital LLP ("FirstEnergy") as their exclusive financial advisor for the farm-out of the Ruvuma Production Sharing Agreement ("Ruvuma PSA") located onshore and offshore Tanzania.

Acreage contains the Ntorya-1 discovery, with over 1.2 Tcf (Pmean) of gas potential in place over the greater Ntorya area. The Companies have identified an attractive portfolio of material exploration prospects and are now seeking a financially robust partner to jointly pursue the potential of this under-explored portion of the Ruvuma Basin.

Key Opportunity Highlights

·     High degree of industry interest for the Ruvuma Basin, an emerging major hydrocarbon province with multi-Tcf discoveries

·     The onshore portion of the basin, currently under-explored, provides a unique and low cost opportunity to access this prolific area

·     Ruvuma PSA comprises two blocks close to the giant multi-Tcf discoveries Jodari (BG) and Golfinho (Anardarko)

·     A total 1.2 Tcf mean unrisked GIIP at Ntorya of which 178 Bcf is discovered

·     Mean unrisked GIIP within identified leads and prospects of 5.6 Tcf (independently verified by ISIS, 2012)

·     Ntorya discovery located close to the planned 36" pipeline from Mnazi Bay to Dar es Salaam (project sanctioned and fully funded)

·     Additional oil potential associated with the Karoo sediments in the western part of the Ruvuma PSA area

Offering & Process

Opportunity to acquire a material interest in the prolific Ruvuma Basin, onshore/offshore Tanzania.  Partners' preference is for a proposal to acquire up to 50% interest in the licence by funding a disproportionate share of the planned forward work program and paying a pro-rata share of past costs.

Online Data Room Open	Late November
Physical Data Room Open	Early December
Bid Date	8th February 2013

END

Neil Ritson, Solo Executive Director, commented: 

"Solo is very pleased to be participating in the joint farm-out of this highly prospective acreage in the Ruvuma Basin and we anticipate considerable industry interest given the location of the PSA, the recent Ntorya gas condensate discovery and the material level of equity being offered to potential new entrants."

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 Luca Tenuta Shore Capital Joint Broker Pascal Keane Jerry Keen (Corporate Broker) Pelham Bell Pottinger                            Public Relations Mark Antelme  Henry Lerwill	[phone] [phone] [phone]

Glossary

Bcf                   - billion cubic metre of gas

GIIP                  - gas initially in place

Tcf                   - trillion cubic metres of gas

 

END

 

 

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