Ruvuma Independent Evaluation

RNS Number : 5868G

Solo Oil Plc

02 July 2012

 

For Immediate Release

2 July 2012

SOLO OIL PLC

("Solo")

Ruvuma Resources Report, Tanzania

Independent Evaluation Indicated 5.75 TCF Potential

Solo today announces the results of an independent technical evaluation of the resource potential of the Ruvuma Basin onshore in southern Tanzania. 

A technical evaluation of the Ruvuma PSA has been prepared by ISIS Petroleum Consultants (ISIS) in Perth, Australia in which ISIS have attributed a total mean unrisked gas-initially-in-place (GIIP) for identified leads, prospects and discoveries of 5.75 trillion cubic feet (tcf).

Highlights

·     Mean unrisked GIIP within identified leads, prospects and discoveries of 5.75 tcf

·     A total 1.17 tcf mean unrisked GIIP at Ntorya of which 178 billion cubic feet (bcf) is discovered

·     A large lead up-dip of Ntorya is seen to have a mean 2.62 tcf unrisked GIIP potential

·     ISIS also recognises significant, but so far unquantified, oil potential in the Karoo Formation

This is the first independent evaluation of the hydrocarbon potential of the Ruvuma PSA and the results serve to highlight the outstanding potential of this under-explored onshore and near-shore portion of the Ruvuma Basin, a basin which has recently been highly successful in the deepwater offshore in both Tanzania and Mozambique.

On 27 June 2012, Solo announced the results of flow testing of the Ntorya-1 discovery well with a final flow of 20.1 million standard cubic feet per day of gas and an estimated 140 barrels per day of condensate from good quality Lower Cretaceous sands.  Based on the reservoir data from the well combined with seismic mapping, ISIS has calculated a mean discovered GIIP of 178 bcf, with a P10 upside of 284 bcf at Ntorya.  Taking into account up-dip potential for the Ntorya prospect defined by ISIS on seismic mapping, a further undiscovered mean GIIP of 990 bcf is estimated.  The Ntorya sands are interpreted from seismic to be part of a marine channel fill sequence.

Further up-dip to the west of Ntorya, a separate channel fill complex, the Namisange Lead, has been identified from seismic, with a potential unrisked undiscovered mean GIIP of 2.62 tcf.  A seismic infill programme is planned for later in 2012 to better image the Ntorya area together with the Namisange Lead. Appraisal drilling is expected to follow the completion of the additional 2D seismic data.

To the north of Ntorya, in the area of the Likonde-1 well drilled in 2010, the mapping has identified remaining up-dip stratigraphic potential in the excellent Lower Tertiary sandstone reservoir penetrated in that well, with a mean unrisked undiscovered GIIP of 504 bcf. 

Further north and adjacent to the coast, the previously identified Sudi Lead has been re-mapped as a large Base Tertiary channel fill system with mean unrisked undiscovered GIIP of 436 bcf.  Both the Likonde Up-dip and Sudi Leads require additional seismic in order to mature as drillable prospects.  A number of additional leads have also been mapped in the onshore Ruvuma PSA, two to the west of Sudi and two on the eastern side of the block.

Although not yet quantified due to lack of seismic control, the ISIS report also recognises additional potential in the Karoo section, especially in the north of the Ruvuma PSA.  Traps present in the Karoo have potential for oil, demonstrated by the oil-prone nature of the Karoo section in the Lukeledi-1 well drilled nearby in 1992, and the shows in Likonde-1.

In addition to the onshore discovery, prospects and leads, re-mapping of the offshore portion of the Ruvuma PSA (approximately 20% by area) has highlighted a major channel fill complex, named Kiswa, at the Base Tertiary Unconformity level to which ISIS have attributed unrisked undiscovered mean GIIP of 709 bcf. 

It is now intended to carry out a further 2D seismic acquisition programme in order to appraise the Ntorya-1 discovery and to upgrade the highest potential leads to drillable status.  A minimum of two further exploration wells are planned for the Ruvuma PSA in the current exploration phase.  Additional data will be targeted at refining the resource estimates and preparing for the next phase of drilling within the PSA

Participants in the Ruvuma PSA are:  Ndovu Resources Ltd (Aminex) 75% (operator) and Solo Oil Plc 25%.

Neil Ritson, Solo Executive Director, commented; 

"The existence of identified discoveries, leads and prospects with mean potential of 5.75 tcf and a further significant potential for oil underlines the enormous potential of the Ruvuma PSA.  When taken together with the vast reserves discovered to date offshore and the favourable operating cost environment of the onshore this represents a very valuable resource.  Existing nearby infrastructure and the planned Mtwara to Dar es Salaam pipeline further enhance the commercial value of this acreage.

On the basis of the recent gas flow test results at Ntorya-1 and the over 1 tcf potential at Ntorya and the other prospects reported by ISIS; Solo will now be actively seeking an additional partner to participate in the next phase of exploration and development in the PSA.  This is a very exciting time for Solo and we expect to have further positive news through the summer."

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.

NOTE: The terms "Discovered" and "Undiscovered" Gas Initially-in-Place are used in accordance with the SPE Petroleum Resources Management System classification of 2007.  Previously; Contingent and Prospective Gas Initially-in-Place numbers are equivalent respectively to the Discovered and Undiscovered GIIP classification.

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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