Regulatory Approval

RNS Number : 7613I

Solo Oil Plc

08 July 2013

 

For Immediate Release

8 July 2013

SOLO OIL PLC

("Solo")

AWARD OF TANZANIA APPRAISAL LICENCE

Solo is pleased to announce that the application for an Appraisal Licence at its Ntorya-1 discovery in Tanzania has been approved by the Tanzanian authorities.

Ntorya-1 was drilled in the Ruvuma Production Sharing Contract ("PSA") area in 2012 and successfully tested gas at a rate of 20 million standard cubic feet per day (equivalent to more than 3,000 barrels of oil per day) with 139 barrels per day of 53 degree API condensate.   An independent estimate by ISIS Petroleum Consultants ("ISIS") of gas discovered by the well indicated a gross discovered volume of 178 billion cubic feet in place and the operator has evaluated this to be a contingent resource of 134 billion cubic feet of recoverable gas.

ISIS estimated that 1.17 trillion cubic feet of gross unrisked gas in place were potentially present at Ntorya and that further appraisal would be required to confirm this volume.  The mean gross unrisked gas in place in discoveries, prospects and leads within the PSA was estimated to be in excess of 5.75 trillion cubic feet.

The Ruvuma PSA covers 6,079 square kilometres on the Tanzanian border with Mozambique where well over 100 trillion cubic feet of gas has been discovered in recent years.  The appraisal licence area consists of 9 contiguous 5 minute by 5 minute graticular blocks around the Ntorya-1 discovery representing approximately 13% of the PSA area. 

The appraisal programme will consist of 2D seismic to delineate the extent of the Ntorya discovery and the drilling of an appraisal well.  The Appraisal Licence is granted for a period of two years with options to extend at the discretion of the Minister. 

It is anticipated that gas from Ntorya, and the Ruvuma PSA generally, will be commercialised via the planned 36" diameter pipeline which will run through the PSA area to Dar es Salaam, which is the largest gas market in Tanzania.

The partners in the Ruvuma PSA are actively seeking additional industry partners to farm into the Ruvuma PSA and negotiations with a number of parties are in progress.

Solo's Executive Director, Neil Ritson, commented:  "This award represents a significant step in the commercialisation of gas in the onshore Ruvuma PSA and we look forward to the acquisition of additional seismic later this year.  The conclusion of a farmout with a new partner will also assist in ensuring the work program advances as quickly as possible as there is a large gas resource yet to develop."

Partners in the Ruvuma PSA are:

Ndovu Resources Ltd. (Aminex)                      75% (operator)

Solo Oil PLC                                                     25%

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]

 

END

 

 

DRLUBVRROBABRUR