TIDMSOLO

RNS Number : 4795D

Solo Oil Plc

06 July 2016

The following announcement replaces the previous announcement "Kiliwani North well reaches 30 mmscfd in commissioning" dated 4 July 2016 and released at 07.00 with RNS number 0683D.

The previous announcement referred to "Solo will receive US$3.00 per mmbtu (approximately US$3.07 per mmscf)" whereas it should have read "Solo will receive US$ 3.00 per mmbtu (approximately US$3.07 per mscf)".

This replacement announcement also includes an additional item in the Glossary:

 
 mscf   thousand standard cubic feet of gas 
-----  ------------------------------------

All other information remains the same.

FOR IMMEDIATE RELEASE 6 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 mscf). 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 
 
 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                        +44 (0) 20 7408 4090 
   Investor Relations          +44 (0) 20 3772 2500 
   Stefania Barbaglio          +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 
-------  ------------------------------------------- 
 mscf     thousand standard cubic feet of gas 
-------  ------------------------------------------- 
 psi      pounds per square inch 
-------  ------------------------------------------- 
 TPDC     Tanzania Petroleum Development Corporation 
-------  ------------------------------------------- 
 US$      United States of America dollars 
-------  -------------------------------------------

This information is provided by RNS

The company news service from the London Stock Exchange

END

DRLRFMRTMBAMBIF

(END) Dow Jones Newswires

July 07, 2016 02:00 ET (06:00 GMT)

Scirocco Energy (LSE:SCIR)
Historical Stock Chart
From Aug 2024 to Sep 2024 Click Here for more Scirocco Energy Charts.
Scirocco Energy (LSE:SCIR)
Historical Stock Chart
From Sep 2023 to Sep 2024 Click Here for more Scirocco Energy Charts.