Tanzania Test Results

RNS Number : 3126G

Solo Oil Plc

28 June 2012

 

For Immediate Release

28 June 2012

SOLO OIL PLC

("Solo")

Tanzania Test Results

Ntorya-1 flows 20 million cubic feet per day of gas and liquids

Solo today announces significant results from the flow testing of the Ntorya-1 well at its discovery in the Ruvuma Basin onshore in southern Tanzania. 

The well flowed gas at a measured rate of 20.1 million cubic feet per day (equivalent to 3,350 barrels of oil per day) through a 1" choke, with an estimated additional 140 barrels per day of 48 degrees API condensate.   Original reservoir pressure was indicated at 5,424 psi and only small quantities of formation water were produced.

The uppermost 3.5 metres of the gross 25 metre (80 feet) sand interval was perforated and the well was flowed on several choke sizes from 16/64ths to 64/64ths of an inch over extended intervals during the last four days with corresponding shut-in periods to acquire pressure build-up data.  Samples were also taken for further analysis which with the pressure data will assist in designing a future development programme.

The successful testing will now be followed by a programme of seismic acquisition later in the year in order to gain a fuller understanding of the size of this discovery and to identify further drilling targets. An independent reserves report on the Ruvuma PSA, commissioned in April following the discovery, is nearing completion and the findings of that report will be issued shortly.

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

Neil Ritson, Solo Executive Director, commented; 

"We are delighted with these test result which confirms our expectation that commercial rates would be obtained.  The presence of liquids (condensate) greatly enhances the economics of the discovery and provides further encouragement that oil may be discovered in the onshore basin. 

The commercial potential is further supported by the Tanzanian government's recent announcement that it has signed a financing agreement to build a 36" diameter gas pipeline from Mtwara, 25 km away from the Ntorya-1 discovery, to the capital Dar es Salaam.   The imminent construction of additional gas infrastructure will further add to the value of this discovery and the onshore Ruvuma as a whole."

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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