Solo Oil Plc Update on Kiliwani North, Tanzania (5469N)
01 February 2016 - 6:01PM
UK Regulatory
TIDMSOLO
RNS Number : 5469N
Solo Oil Plc
01 February 2016
FOR IMMEDIATE RELEASE, 7.01am 1 February 2016
SOLO OIL PLC
("Solo" or the "Company")
Update on Kiliwani North, Tanzania
Solo has been advised by operator Aminex PLC ("Aminex") that the
Kiliwani North-1 well is currently undergoing final well integrity
testing prior to first production. This follows the signing of a
Gas Sales Agreement ("GSA") in January. The gas price agreed in the
GSA of $3.00 per million BTU (approximately $3.07 per thousand
cubic feet) is indexed-linked to the US consumer price index and
therefore not reliant on global oil prices. The Company will be
paid in US Dollars for all produced gas including commissioning and
testing gas.
Solo understands that Aminex has been advised by the Tanzanian
Petroleum Development Corporation to prepare the Kiliwani North-1
well for production starting mid-February. Initial production rates
will be managed to allow for testing and commissioning of the
recently completed Songo Songo gas processing plant and related
pipelines, while also recording critically important pressure and
flow rate measurements to determine the optimal flow rate to
maximize the life of the reservoir.
Solo currently holds a 6.175% interest in the Kiliwani North
Development Licence where the Kiliwani North-1 well is located and
also an option to acquire a further 6.175% interest in the Kiliwani
North Development Licence.
LR Senergy has ascribed gross 28 billion cubic feet best
estimate contingent resources to Kiliwani North-1, which was
contingent on completion of the GSA. It is therefore Solo's
expectation that reserves at Kiliwani North will be booked later
this year.
Neil Ritson, Solo's Chairman, commented:
"Solo is delighted that the momentum of the Kiliwani North
project is being maintained after the signing of the GSA and we
anticipate being able to report first gas and receipt of first
revenue in the comings months."
Current participants in the Kiliwani North Development Licence,
following TPDC back in, are: Ndovu Resources Ltd (Aminex) 55.575%
(operator), RAK Gas LLC 23.75%, Solo Oil plc 6.175%, Bounty Oil
& Gas NL 9.05% and TPDC 5%.
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 38 years of relevant experience in the energy sector.
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
Neil Ritson
Fergus Jenkins +44 (0) 20 3794 9230
Beaumont Cornish Limited
Nominated Adviser and
Joint Broker
Roland Cornish +44 (0) 20 7628 3396
Shore Capital
Joint Broker
Pascal Keane
Jerry Keen (Corporate
Broker)
Bell Pottinger
Public Relations
Henry Lerwill
Cassiopeia Services
LLP +44 (0) 20 7408 4090
Investor Relations +44 (0) 20 3772 2500
Stefania Barbaglio +44 (0) 79 4969 0338
Glossary:
bcf billion cubic feet
--------------------- -----------------------------------------------------------------------------------------------
best estimate an estimate representing the best technical assessment of likely projected volumes. Often
associated with a central (2C), P(50) or Pmean value
--------------------- -----------------------------------------------------------------------------------------------
BTU British Thermal Units
--------------------- -----------------------------------------------------------------------------------------------
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
--------------------- -----------------------------------------------------------------------------------------------
GSA gas sales agreement
--------------------- -----------------------------------------------------------------------------------------------
mcf thousand cubic feet
--------------------- -----------------------------------------------------------------------------------------------
mmscfd million standard cubic feet of gas per day
--------------------- -----------------------------------------------------------------------------------------------
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
--------------------- -----------------------------------------------------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
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