Tanzanian Assets CPR

RNS Number : 1023N

Solo Oil Plc

14 May 2015

 

FOR IMMEDIATE RELEASE, 7 am                                                                                                         14 May 2015

SOLO OIL PLC

("Solo" or the "Company")

Tanzanian assets assessed in a new Competent Person's Report

Solo is pleased to announce that Aminex plc ("Aminex), operator for Solo's various interests in Tanzania, has today announced that a detailed technical evaluation of the Kiliwani North Development Licence (KNDL") and the Ruvuma Petroleum Sharing Contract ("PSC") assets has been completed by Senergy (GB) Limited ("LR Senergy") on behalf of their operated joint ventures. 

Highlights:

Kiliwani North Development Licence (6.5% working interest)

·     Gross mean gas initially in place ("GIIP") of 44 billion cubic feet ("bcf") of which gross 28 bcf has been booked as best estimate (2C) contingent resources

Ruvuma PSA (25% working interest)

·     Ntorya-1 discovery attributed gross 153 bcf mean GIIP of which gross 70 bcf booked as best estimate (2C) contingent resources

·     Total gross mean GIIP for discovered and undiscovered resources of 4.17 trillion cubic feet ("tcf")

·     Four main leads (Ntorya Updip, Namisange, Likonde Updip, Sudi) high graded to drillable targets and attributed total gross 3 tcf mean GIIP

·     Basin remains significantly underexplored according to international standards with further potential in various plays

Upon the signing of a Gas Sales Agreement ("GSA") in the KNDL, which is expected prior to gas delivery, the Kiliwani North-1 resources are expected to be upgraded to a reserves category.  Further appraisal of Ntorya-1 and agreement to a development plan may also allow resources from that discovery to progress to reserves over time.

Solo holds the right to acquire an additional 6.5% working interest in the KNDL for a payment of US$3.5 million within 30 days of the signing of the relevant GSA.

Neil Ritson, Solo's Chairman, commented:

"We are extremely pleased that an independent analysis of our various Tanzanian assets has again confirmed the presence of contingent gas resources in both Kiliwani North and Ntorya, along with considerable upside.  We look forward to the commencement of gas sales at Kiliwani and to the announcement of further plans to appraise the Ntorya gas condensate discovery. Tanzania represents a major part of our portfolio and we are excited by the potential it represents."

Qualified Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chairman 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.

All estimates produced by LR Senergy comply with the 2007 Petroleum Resources Management System (PRMS) prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE).

Notes to Editors:

Solo is an oil and gas investment company which aims to acquire and develop a diverse global portfolio of oil and gas assets managed by competent operators who have relevant local expertise where they operate.   Assets in the exploration, appraisal and near production phase as acquired to create a diversified portfolio of ventures that once matured can be produced or divested to create shareholder value.

Solo's current portfolio of non-operated oil and gas assets includes:

·      Major interest, 25%, in the prolific Ruvuma PSC, Tanzania

·      Ntorya-1 (Ruvuma Basin, Tanzania) discovery which flowed 20 mmscfd and 139 bopd

·      More than 4 tcf of additional prospective resources identified in Ruvuma PSC

·      A 6.5% interest in Kiliwani North Development License and Kiliwani North-1 well, Tanzania

·      Participation in UK Weald Basin exploration projects, including a 6.5% interest in the Horse Hill discovery

·      Participation in Nigerian Marginal Fields round through a 20% stake in Burj Africa

·      Enhanced Oil Recovery project in Ontario, Canada

For further information:

Solo Oil plc Neil Ritson Fergus Jenkins	[phone]
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish	[phone]
Shore Capital Joint Broker Pascal Keane Jerry Keen (Corporate Broker) Bell Pottinger                            Public Relations Henry Lerwill Cassiopeia Services Investor Relations Stefania Barbaglio	[phone] [phone] [phone]

Glossary:

bcf	billion cubic feet
best estimate	an estimate representing the best technical assessment of likely projected volumes.  Often associated with a central (2C), P50 or Mean Value
contingent resources	those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies
discovery	a discovery is 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
gas initially in place or GIIP	the quantity of gas that is estimated to exist originally in naturally occurring accumulations before any extraction or production
recovery or recoverable	the quantity or portion of petroleum, here gas, initially-in-place that can be extracted by a well or wells to the surface
reserves	reserves are defined by the SPE as those quantities of petroleum, here oil and gas, which are anticipated to be commercially recovered from known accumulations from a given date forward
tcf	trillion cubic feet

 

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