TIDMSOLO

RNS Number : 1559B

Solo Oil Plc

05 October 2015

FOR IMMEDIATE RELEASE, 7 am 5 October 2015

SOLO OIL PLC

("Solo" or the "Company")

Kiliwani North Development Update

Solo is pleased to announce that it has been notified by the operator that the Tanzania Petroleum Development Corporation ('TPDC') intends to exercise its right to back into the Kiliwani North Development Licence ('KNDL') for a 5% working interest as a fully paying partner. The assignment of the interest to TPDC will be subject to TPDC paying the existing joint venture partnership the 5% pro-rata share of the development capital spent to date and to complying with the existing Joint Operating Agreement. Once the back-in is concluded Solo's interest in the KNDL will be 6.175% (current interest 6.5%).

Neil Ritson, Solo's Chairman, commented:

"Solo is delighted that TPDC have chosen to exercise their back-in rights which will further increase their alignment with the partnership developing Kiliwani North. We continue to anticipate reaching final agreement on the gas sales agreement shortly and gas sales revenues commencing soon after."

The KNDL contains the Kiliwani North 1 ("KN-1") well, which the Company expects to produce at up to approximately 30 million feet per day of gas (gross). Once producing this will represent a major milestone for Solo, providing the Company's first revenues from its investments in Tanzania.

A gas sales agreement ("GSA"), with appropriate payment guarantee provisions, is pending signature and once signed will allow gas to flow from the KNDL to the newly constructed Songo Songo Island gas processing facilities and into the national pipeline to customers in Dar es Salaam. The operator continues to report the imminent conclusion of the GSA discussions.

Solo holds an option to increase its interest in the KNDL by 6.5% to a total of 13% once the GSA is signed for a further payment of US$3.5 million to Aminex. This option will also be subject to TPDC back-in once concluded. Solo would then hold a 12.35% working interest in the Licence.

Participants in the Kiliwani North Development Licence are currently: Ndovu Resources Ltd (Aminex) 58.5% (operator), RAK Gas LLC 25%, Solo Oil plc 6.5% and Bounty Oil & Gas NL 10%.

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                        +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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October 05, 2015 02:00 ET (06:00 GMT)

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