LONDON (Alliance News) - Solo Oil PLC said Thursday that a seismic programme is now underway in south-east Tanzania.
The company's investing policy is to acquire a diverse portfolio of direct and indirect interests in exploration, development and production oil and gas assets which are based in the Americas, Europe or Africa.
The seismic data is required to assist in the selection of future drilling locations at the onshore Ntorya gas-condensate discovery.
Solo Oil said a programme of up to 250 kilometres of full-fold 2D seismic is currently in progress on the Ntorya Appraisal Licence, and will be tied to the Likonde-1 well in the adjacent Lindi Licence of the Ruvuma Petroleum Sharing Contract.
It said that the new seismic data will enhance the value of the original Ntorya discovery and optimise the location of future production wells.
The Ntorya-1 well was tested over an initial 3.5 metre sand interval at a rate 20.1 million cubic feet per day, equivalent to 3,350 barrels of oil per day, with an estimated additional 140 barrels per day of 48 degrees API condensate.
The Ruvuma Petroluem Sharing contract covers the onshore extension of the highly prolific basin, in which multiple giant gas fields have been discovered offshore in both Tanzania and Mozambique during recent years.
"The Ntorya discovery is a significant onshore find in the Ruvuma Basin. It is now time to move the discovery to the next phase of the commercialisation process, including exploring the option to tie the Ntorya Field into the new USD1.2 billion Chinese-built gas pipeline project currently being constructed from Mtwara to Dar es Salaam," said Executive Director Neil Ritson in a statement.
Ritson said the is new 36" pipeline will pass approximately 20 kilometres from the Ntorya well and is reported to be nearing completion, creating the opportunity for Ntorya's production to be swiftly monetised.
Solo Oil said that acquisition and processing of the 2D seismic data is expected to take between four to five months to complete.
Solo Oil shares were trading 2.4% higher at 0.190 pence per share Thursday afternoon.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
Copyright © 2014 Alliance News Limited. All Rights Reserved.