15 Mar 2016 07:00
FOR IMMEDIATE RELEASE, 7am 15 March 2016
SOLO OIL PLC
("Solo" or the "Company")
Update on Kiliwani North, Tanzania
Solo has been advised by the operator of the Kiliwani North Development Licence, Aminex PLC ("Aminex"), that all the integrity tests on the Kiliwani North-1 well ("KN-1") have been completed successfully and that the gas pressures measured in the well exceed those found on other producing wells in the area. The well and associated controls are now ready to supply gas to the nearby Songo Songo gas processing plant.
The partners in the KNDL have now been advised by the Tanzanian Petroleum Development Corporation to prepare the Kiliwani North-1 well to commence production in early April following a revision of the Songo Songo commissioning schedule. During the commissioning program the initial production rates will be managed to allow for testing of the new gas processing facilities and related pipelines.
Solo currently holds a 6.175% interest in the KNDL where the Kiliwani North-1 well is located and has recently agreed to increase that holding to 10% through acquiring a further 3.825% from Aminex.
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:
"Following the signing of the gas sales agreement and the completion of the construction of pipeline and gas treatment infrastructure Solo looks forward to the commencement of commissioning at Songo Songo. Kiliwani North gas will go to the Dar es Salaam market and the KNDL partners will be paid for all production in US Dollars at a rate of $3 per million BTU."
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 Investor Relations Stefania Barbaglio |
+44 (0) 20 7408 4090
+44 (0) 20 3772 2500
+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), P50 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 |
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 |