Operations Update, Tanzania

RNS Number : 8508Q

Solo Oil Plc

05 December 2016

 

FOR IMMEDIATE RELEASE, 7:00 am                                                                                   5 December 2016

SOLO OIL PLC

("Solo" or the "Company")

Operations Update, Tanzania

Solo is pleased to provide an operational update on activities in the Ruvuma Basin PSA and the Kiliwani North Development Licence operated by Aminex plc ("Aminex").

Aminex confirms that an independent inspection of the Caroil#2 drilling rig has been completed and the Ntorya-2 ("NT-2") appraisal well is now expected to be spudded in mid-December.  The Company has a 25% interest in the well and initial results are expected early next year.    Solo is funded for its share of the drilling costs of NT-2 which are estimated to be US$2.5 million net to Solo's interest.

The NT-2 appraisal well is located approximately 1,500 metres southwest of the Ntorya-1 ("NT-1") discovery well, which flow tested at 20 million cubic feet per day of gas ("mmscfd") with 139 barrels associated condensate from a 3.5 metre interval at the top of a 20 metre Cretaceous sandstone pay zone at a depth of approximately 2,600 metres. The NT-2 well is expected to test the up-dip part of the same channel complex as the NT-1 discovery well in a thicker gross reservoir section.  

Additionally, Aminex has reported that it has now completed all necessary civil works for the Ntorya-3 ("NT-3") wellsite. NT-3, which is located approximately 5 kilometres from the NT-1 discovery well, is expected to be drilled following NT-2, however, the programme may vary depending on the results at NT-2.  The location of NT-3 was picked based on 2D seismic acquired in 2014 and is further up-dip from both NT-1 and NT-2 and the well is expected to test the thickest part of the Cretaceous channel complex.

Revenues from Kiliwani North gas sales to the Tanzania Petroleum Development Corporation are now established. The gas is sold at US$3.00 per mmBTU at the outlet flange of the wellhead and the Company does not incur any additional transmission costs. Cash from the sale of gas from Kiliwani North is being deployed by the Company to fund operations in Tanzania.  Solo holds a 7.125% working interest in the Kiliwani North field and gas sales.

Neil Ritson, Solo's Chairman, commented;

"News from Aminex, the operator of both the Ruvuma PSA and KNDL, confirms that both operations remain on schedule.  Solo is especially excited that the spud of the Ntorya appraisal well is now imminent since this well has significant upside potential for Solo's asset holdings in Tanzania. The receipt of regular gas payments from TPDC is also encouraging and will support the investments being made in Tanzania."

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 is a Fellow of the Geological Society of London.

For further information:

Solo Oil plc Neil Ritson Daniel Maling	[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:

2D seismic	seismic data collected using the two-dimensional common depth point method
barrel	45 US gallons
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
m	thousand (ten to the power 3)
mm	million (ten to the power 6)
mmBTU	million British Thermal Units
mmscfd	million standard cubic feet of gas per day
pay	reservoir or portion of a reservoir formation that contains economically producible hydrocarbons. The overall interval in which pay sections occur is the gross pay; the portion of the gross pay that meets specific criteria such as minimum porosity, permeability and hydrocarbon saturation are termed net pay
PSA	Petroleum Sharing Agreement
reservoir	a subsurface rock formation containing an individual natural accumulation of moveable petroleum

 

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