LONDON (Alliance News) - Solo Oil PLC saw its shares jump Thursday morning after the company said its Ntorya-1 discovery at the Ruvuma Licence, in Tanzania, has been upgraded after a recent evaluation of new seismic data.
Solo Oil's shares were trading 18% higher at 0.448 pence per share Thursday morning, the biggest gainer on AIM.
Aminex PLC, the operator of the Ntorya-1 discovery has increased the gas in place by 70% to 1.9 trillion cubic feet from the original estimate of 1.1 trillion cubic feet after acquiring further seismic data, said Solo Oil.
The Ntorya-1 well was the second well drilled by Solo in the Ruvuma. The first well, Likonde-1, also discovered gas but flow testing could not be carried out at the time due to mechanical restrictions on the drilling rig. Likinde-1 is still undergoing further appraisal, said the company.
"The upgrade in resources is a very encouraging development and Solo looks forward to an appraisal programme that will lead to this gas being produced into the newly constructed pipeline facilities connecting the Ruvuma Basin to gas markets in Dar es Salaam," said Neil Ritson, executive director.
Aminex has a 75% shareholding as operator on the site and Solo Oil holds the remaining 25%.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Aminex (AEX)