Ntorya-1 Update

RNS Number : 2976C

Solo Oil Plc

30 April 2012

 

For Immediate Release, 7 am

30 April 2012

SOLO OIL PLC

("Solo" or the "Company")

Ntorya-1 Update, Tanzania

Solo today announces the completion of drilling operations and an update on plans for testing the gas discovery made in the Ntorya-1 well in the Ruvuma Basin onshore in southern Tanzania. 

The Caroil-6 rig has now been released from the Ntorya-1 well and will be demobilised to make way for the wireline testing equipment that has been mobilised and is due to arrive at the site within the next 30 days.  A production string has been run in the well and a Christmas tree installed in preparation for the planned test sequence.

On the 27^th February 2012, Solo and Aminex reported that a gas discovery had been made in a 25 metre (80 foot) gross Cretaceous sandstone interval between 2,660 metres and 2,685 metres.   This interval will now be tested with a view to establishing the level of production that can be obtained.  Results of the testing will be announced once available.

Aminex and Solo have also commissioned new geological and seismic studies to establish the extent of the Ntorya discovery and to locate further prospects in the Ruvuma Production Sharing Agreement (PSA) where Solo plans to invite offers from potential partners to participate in the next round of exploration, commencing with the acquisition of additional seismic data later in 2012.

Solo holds a 25% interest in the discovery and the Ruvuma PSA.

Neil Ritson, Solo Executive Director, commented; 

"This discovery is ideally located just 20 kilometres from Mtwara where there is an existing gas to power facility and where there are plans to install additional gas facilities and pipelines to commercialise the reported 70 tcf of gas already discovered in the Ruvuma Basin.  Having low cost gas onshore close to Mtwara is a significant advantage and we hope to capitalise on that jointly with Aminex.  We also look forward to further exploration in this highly prospective area. "

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 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]

 

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