Ntorya-2 Initial Well Results

RNS Number : 0509W

Solo Oil Plc

06 February 2017

 

FOR IMMEDIATE RELEASE, 7:00 am                                                                                          6 February 2017

SOLO OIL PLC

("Solo" or the "Company")

Ntorya-2 Initial Well Results

Solo is pleased to announce that the Ntorya-2 appraisal well in the Ruvuma PSA in Tanzania has been successfully drilled to a depth of approximately 2,750 metres and has encountered a 50-metre thick gas-bearing reservoir interval, in excess of the Company's prognosis prior to drilling.  

The well intersected a gross gas-bearing sandstone reservoir unit of approximately 51 metres thickness at a drilled depth of 2,596 metres.  Preliminary petrophysical analysis using the Logging While Drilling ("LWD") logs indicates between 25 to 30 metres of net hydrocarbon-bearing reservoir within the gross interval. Significant gas influxes and higher than expected pressures where encountered whilst drilling the reservoir section.  The well is currently being deepened to a total depth of approximately 2,780 metres to allow for the setting of a 7-inch liner below the reservoir interval.

Neil Ritson, Solo's Chairman, commented;

"We are extremely pleased with the results of the well which fully confirm the presence of thicker gas bearing reservoirs up dip from the gas condensate discovery at Ntorya-1. These results move us a significant step forward in the commercialisation of the Ntorya discovery and we look forward to some exciting further results in the coming weeks."

Wireline logging will be conducted, after which a 7" liner will be run over the reservoir section. Detailed petrophysical analysis will be conducted on both the LWD and wireline logs.  Preparations are also currently underway for a comprehensive flow test of the well. 

The well also encountered traces of oil in the gross reservoir interval and operator Aminex plc is now evaluating the implications of this positive development through an updated basin model.

The well was spudded in the onshore Ruvuma Basin PSA on 21 December 2016 in order to further appraise the existing Ntorya discovery. The Ntorya-2 well was targeting the same sandstone channel complex as found at Ntorya-1, but located further up-dip.  The well location is approximately 1,500 metres southwest from the Ntorya-1 discovery which (as reported in June 2012) flowed gas at a rate of 20 million standard cubic feet per day, with 139 barrels of associated condensate, from a 3.5-metre sandstone interval on test. 

Depending on the results of the well test, Aminex and Solo expect to apply for a 25-year development licence over the Ntorya Appraisal Area.  The Ntorya field is located approximately 40 kilometres from the Madimba gas processing plant, which receives gas into the National Gas Pipeline system to Dar es Salaam.

Solo has a 25% non-operating interest in the Ruvuma PSA, and in the Ntorya discovery and Ntorya-2 well.

Qualified Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chairman and Director of Solo Oil plc who has over 38 years of relevant experience in the energy sector. Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and a Fellow of the Geological Society of London.

For further information:

Solo Oil plc Neil Ritson	[phone]
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish	[phone]
Shore Capital Joint Broker Jerry Keen Beaufort Securities Joint Broker Jon Belliss Cassiopeia Services Ltd Investor and Media Relations Stefania Barbaglio	[phone] [phone] [phone]

Glossary:

appraisal	the collection of additional data, usually in the form of additional wells, on an existing discovery prior to sanctioning a development plan
discovery	a petroleum accumulation for which one or several exploratory wells have established through testing, sampling and/or logging the existence of a significant quantity of potentially moveable hydrocarbons
flow test	a flow test or well test involves testing a well by flowing fluids to surface, typically through a test separator. Key measured parameters are water, oil and gas flow rates, downhole pressure and surface pressure. The overall objective is to identify the well's capacity to produce hydrocarbons at a commercial flow rate
LWD	logging while drilling, electric logs installed within the bottom hole assembly of the drilling string to measure the rock and fluid properties of the surrounding formations whilst drilling
PSA	petroleum sharing agreement or contract
petrophysics	the study of the physical and chemical properties of rock formations and their interactions with fluids
reservoir	a subsurface rock formation containing an individual natural accumulation of moveable petroleum
sandstone	a clastic sedimentary rock whose grains are predominantly sand-sized. The term is commonly used to describe consolidated sand or a rock made of predominantly quartz sand
wireline or electric logs	tools used within the wellbore to measure the rock and fluid properties of the surrounding formations

 

END

 

 

DRLUVVKRBSAURAR