Update, Tanzania

RNS Number : 9225L

Solo Oil Plc

19 August 2013

 

For Immediate Release, 7 am

19 August 2013

SOLO OIL PLC

("Solo" or "Company")

Update, Tanzania

Solo today announces a general update on its activities in the Ruvuma Basin PSA in onshore Tanzania.

As previously announced on 8 July 2013 an appraisal licence has been issued by the Tanzanian Government for the Ntorya discovery.  The 760 kilometre square licence requires the acquisition of additional seismic data, which is planned for later in 2013, prior to the drilling of an appraisal well.  Once this additional work is complete a development plan will be prepared. 

The Ntorya-1 well, drilled in 2012, discovered a gross 25 metres sandstone interval to which independent reserves assessment has attributed a gross discovered volume of 178 billion cubic feet (bcf) and an approximate additional 1 trillion cubic feet (tcf) of unrisked potential gas in place.  The well flowed over 20 million cubic feet per day on a 1" choke (equivalent to over 3,000 barrels oil per day) and also produced 53 degree API condensate at a rate of 139 barrels per day.  These are the first liquid hydrocarbons to be tested anywhere in the onshore or offshore Ruvuma Basin in Tanzania and suggest the potential for additional prospectivity for oil within the basin.

The operator has indicated that gas sales negotiations are on-going with the Tanzanian authorities to sell gas in to the 36 inch pipeline which is being constructed between Mtwara to Dar es Salaam, and which passes approximately 12 kilometres to the east of the Ntorya-1 well site.  Initial indications of gas prices being negotiated by other operators, and a development scenario prepared internally by Solo, indicate favourable development economics for the estimated most likely recoverable reserves.  An early production scheme may also be viable since Ntorya-1 was completed in a condition suitable for subsequent production.

Farm-out discussions are continuing with various parties with a view to a partner participating in both the Ntorya appraisal activity and the remaining exploration activity in the block.  Unrisked prospective resources of over 5 tcf have been independently estimated for the known prospects and leads within the Ruvuma PSA and it is envisaged that additional 2D seismic will be used to select future drilling locations.  Exploration drilling must be completed by late 2016 when the remainder of the PSA, outside designated appraisal, development or production licences is due to be relinquished.

Further announcements will be made in the coming months as negotiations with both potential partners and concerning gas sales are advanced.

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

Solo Executive Director, Neil Ritson, commented:  "Whilst progress towards the eventual commercialisation of the Ruvuma PSA has been slightly slower than we previously envisaged we remain enthusiastic about the eventual outcome.  The Ruvuma Basin has been one of the most active exploration areas for gas in East Africa in recent years and the commercialisation of gas is now underway.  A clearer pathway to monetisation is also attracting new potential partners and we hope to have positive progress to report over the coming months."

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 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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