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LONDON (Alliance News) - Aminex PLC and Solo Oil PLC Tuesday said the final well integrity testing of the Kiliwani North-1 well has been completed and the well is now ready to supply gas to the nearby Songo Songo gas processing plant.
Both companies, in separate statements, said the gas pressure measured within the well is similar to other producing wells within the area and the well is expected to begin production in early April.
The initial production rates from the well will be managed to allow for testing of the new gas processing facilities and related pipelines.
Gas from the well will be sold to the Tanzanian Petroleum Development Corp at a price of USD3.0 per million British thermal units, equal to USD3.07 per million standard cubic feet of gas. That will be sold at the wellhead before being sent to the processing plant, where it will then be transported through pipelines to Dar es Salaam, where it will be sold into the local Tanzanian market.
Solo Oil currently holds a 6.2% stake in the project but has agreed to increase its stake to 10% by acquiring a further stake from Aminex. Aminex currently holds a 55.6% stake and is the operator.
Aminex shares were up 4.0% to 1.43 pence per share on Tuesday morning whilst Solo Oil shares were up 11% to 0.383 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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