Update Tanzania, Variation of PSA Terms

RNS Number : 8438F

Solo Oil Plc

30 May 2013

 



For Immediate Release, 7 am

30 May 2013

SOLO OIL PLC

("Solo" or "the Company")

Update Tanzania, Variation of PSA Terms

Solo today announces that a letter of consent has been received from the Tanzanian Petroleum Development Corporation ("TPDC"), the state oil company of Tanzania, permitting a variation of the terms of its Ruvuma Basin Production Sharing Agreement ('PSA').   

This variation will allow the drilling which was due to be completed in the current first extension period, expiring later this year, to be deferred until the second extension period which expires in late 2016. 

Aminex plc  as operator, in collaboration with Solo, is currently conducting a farm-out process to introduce a new partner into the venture so as to explore the Ruvuma PSA as comprehensively as possible.  As previously announced discussions with a number of interested parties are continuing.

The Ruvuma PSA covers approximately 6,000 km², comprising the onshore section of Tanzania's of Ruvuma Basin, but also including sections of shallow water marine areas and a small section of deep water.  The Ruvuma River, which is the southern limit of the PSA, is the frontier between Mozambique and Tanzania. In recent years there have been numerous world-class discoveries of natural gas in the offshore deep water part of the basin, both in Mozambique and Tanzania. 

In 2012, Solo and Aminex made a commercial discovery of natural gas and condensate at the Ntorya-1 well in the Ruvuma PSA.   Further appraisal of Ntorya-1 is planned along with further exploration for gas and oil.  The Chinese-funded pipeline from Mtwara to Dar es Salaam, which is presently under construction, passes through the PSA area and could provide a ready access to a growing gas market.

Partners in the Ruvuma PSA are Aminex (Ndovu Resources Ltd) 75% (operator) and Solo Oil plc 25%.

Neil Ritson, Solo Executive Director, commented:  "TDPC's support in varying the terms in order to permit additional seismic to be acquired prior to further drilling will greatly assist in the farm-out process and will thereby facilitate further exploration of this exciting area."

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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