Solo Oil Plc Farmout of Ruvuma PSA, Tanzania (2276G)
November 19 2015 - 2:01AM
UK Regulatory
TIDMSOLO
RNS Number : 2276G
Solo Oil Plc
19 November 2015
FOR IMMEDIATE RELEASE, 7 am 18 November 2015
SOLO OIL PLC
("Solo" or the "Company")
Farmout of Ruvuma PSA, Tanzania
Solo Oil is pleased to announce that it has reached agreement
with Aminex plc ("Aminex") to farmout a 12.5% net working interest
in the Ruvuma Petroleum Sharing Agreement ("Ruvuma PSA") in
Tanzania to Aminex in a back-to back agreement which will see
Bowleven plc ("Bowleven"), an AIM listed oil and gas company, join
the Ruvuma PSA joint venture with a 50% net working interest.
Solo will receive from Aminex a total consideration, in the form
of a carried work program contribution and production bonus
payments, of US$3.625 million comprising:
-- Net carry of US$2.5 million on Solo's Ruvuma PSA future work activity
-- A cash bonus of US$0.125 million on the completion of the Ntorya-1 well for production
-- A further bonus of US$1 million, to be settled in cash or
shares, payable on achieving commercial production from the Ruvuma
PSA
Solo and Aminex entered a Vender Collaboration Agreement for
their Ruvuma PSA interests in October 2012. As a result of a wider
transaction between Aminex and Bowleven, Solo has agreed to
participate in the farm-out of 50% of its interests in the Ruvuma
PSA and receive a pro rata share of the agreed farmout proceeds in
the form of a work programme carry of US$2.5 million and various
production bonuses associated with the existing Ntorya gas
condensate discovery.
A formal Sale and Purchase Agreement is being prepared and
completion of the transaction will be subject to the completion of
the transaction announced today between Aminex and Bowleven
including the receipt of the necessary regulatory approvals. The
effective economic date of the transaction will be 1 January 2016.
The farm-out of an interest in the Ruvuma PSA is also subject to
formal approval from the Tanzanian authorities. Aminex will remain
operator of the Ruvuma PSA.
The completion of the proposed transactions will enable the
acceleration of operations in the Ruvuma PSA where the carry under
the farm-out is expected to enable the drilling two wells at
Ntorya.
Neil Ritson, Solo's Chairman, commented:
"Solo has been working for some time to support a joint farm-out
with Aminex that will allow the Ruvuma PSA work programme to be
accelerated, notably the drilling of two appraisal wells at the
Ntorya gas-condensate discovery. We are delighted that Bowleven
will be joining the Ruvuma PSA joint venture and also the existing
Aminex-Solo joint venture in the Kiliwani North Development which
is anticipated to commence gas sales shortly."
On completion of the transaction, Solo will retain a 12.5%
non-operated interest in the Ruvuma PSA. Aminex will retain an
operated 37.5% interest and Bowleven will hold a 50% interest.
The transaction entered into between Aminex and Bowleven also
envisages Aminex selling a 25% interest in the Kiliwani North
Development Licence ("KNDL") where Solo also holds a 6.5% interest
(6.175% after back in by the Tanzanian Petroleum Development
Corporation ("TPDC")) and an option to acquire a further 6.5%
(6.175% after back in by the TPDC) in the KNDL following signature
of a Gas Sales Agreement with the Tanzanian authorities.
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 +44 (0) 20 7408 4090
Investor Relations +44 (0) 20 3772 2500
Stefania Barbaglio +44 (0) 79 4969 0338
This information is provided by RNS
The company news service from the London Stock Exchange
END
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