4 Jul 2016 07:00
FOR IMMEDIATE RELEASE, 7 am 4 July 2016
SOLO OIL PLC
("Solo" or the "Company")
Kiliwani North well reaches 30 mmscfd in commissioning
Solo Oil is pleased to announce that it has been advised by the operator Aminex plc ("Aminex") that over the weekend, gas production from the Kiliwani North-1 well in Tanzania reached 30 million standard feet per day ("mmscfd") (approximately 5,000 barrels of oil equivalent per day) and may increase further over the next several days as part of the commissioning process. The commissioning process is expected to be concluded with the testing of the well to determine optimal rates which Aminex believes will be around 30 mmscfd based on previous well-test data.
Neil Ritson, Solo's Chairman, commented:
"The commissioning at Kiliwani North is proceeding as expected, with production reaching 30 mmscfd at the last weekend. Commissioning of the well, pipeline and associated gas processing plant are all reported to be progressing satisfactorily and TPDC has advised that the process will be concluded by the end of the month, after which Aminex plan to test the well to determine optimal flow rates before long-term production starts."
Solo currently holds 7.175% of the Kiliwani North Development Licence and is set to increase its participation to 10% as certain project milestones are achieved. Kiliwani North is the sole producer into the new Songo Songo Island Gas Processing plant and anticipates that after well testing the plant will continue to require in excess of 23 mmscfd to operate.
The gas produced at Kiliwani North will be paid for under the terms of the Gas Sales Agreement signed with the buyer, Tanzania Petroleum Development Corporation ("TPDC"). Solo will receive US$3.00 per mmbtu (approximately US$3.07 per mmscf). First payments are anticipated to be made in July 2016.
Qualified Person's Statement:
The information contained in this announcement has been reviewed and approved by Neil Ritson, Chairman and Director for Solo Oil Plc who has over 38 years of relevant experience in the energy sector. Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.
For further information:
Solo Oil plc Neil Ritson Fergus Jenkins | +44 (0) 20 3794 9230 |
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Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish | +44 (0) 20 7628 3396 |
Shore Capital Joint Broker Jerry Keen (Corporate Broker)
Bell Pottinger Public Relations Henry Lerwill
Cassiopeia Services LLP Investor Relations Stefania Barbaglio |
+44 (0) 20 7408 4090
+44 (0) 20 3772 2500
+44 (0) 79 4969 0338 |
Notes to Editors
Kiliwani North Development Licence (7.175%)
The Kiliwani North Gas Field in central Tanzania has been independently estimated to contain 28 bcf gross contingent resource and is producing dry clean gas under high natural pressure (1,600 psi) from the high quality Neocomian to late Cretaceous reservoir. The Kiliwani North-1 well tested at 40 mmscfd. The gas will be sold at the well head in US$ at a fixed price and fed directly into the Tanzania's new pipeline infrastructure to Dar es Salaam. Solo holds the right, but not obligation, to increase its share of the Kiliwani North Field to 10% as certain milestones on the project are reached.
Glossary:
bcf | billion standard cubic feet of gas |
mmbtu | million British thermal units |
mmscf | million standard cubic feet of gas |
mmscfd | million standard cubic feet of gas per day |
psi | pounds per square inch |
TPDC | Tanzania Petroleum Development Corporation |
US$ | United States of America dollars |