Solo Oil Plc Kiliwani North Operations Update (5922V)
November 06 2017 - 2:00AM
UK Regulatory
TIDMSOLO
RNS Number : 5922V
Solo Oil Plc
06 November 2017
FOR IMMEDIATE RELEASE
6 November 2017
SOLO OIL PLC
("Solo" or the "Company")
Kiliwani North Operations Update
Solo notes today that Aminex plc ("Aminex") the operator of the
Kiliwani North Development Licence ("KNDL") in Tanzania has
reported that production from the Kiliwani North-1 ("KN-1") well
has been temporarily reduced to gas rates of below 1 million cubic
feet per day ("mmscfd"). KN-1, which has recovered in excess of 6
billion cubic feet ("bcf") to date, is now thought to be draining
only a single compartment within the greater Kiliwani North
structure and is exhibiting slow recharge across faults or via
restricted pathways within the structure.
Aminex will use this period to collect additional data and is
evaluating a number of options to maximise future gas recovery and
increase production rates from the Kiliwani North resources.
Options currently under evaluation include installation of
temporary wellhead compression and also maximising the recovery of
KN-1 gas resources through step-out prospects on the KNDL through a
review of existing seismic data.
Based on available information Solo does not currently believe
that there will be a material impact on the 28 bcf of gross
resources independently estimated for KN-1. Solo holds a 7.55%
interest in the KN-1 well and the KNDL.
KN-1 gas sales receivables continue to be settled on a monthly
basis and due to the existing time-lag associated with past
payments this shut-in will have no material impact on forecast cash
flow in 2017.
Elsewhere in Tanzania in the Ruvuma PSA, Solo is preparing for
the monetisation of the gross estimated gas-in-place 1.34 trillion
cubic foot ("tcf") Ntorya discovery, for which the application for
a development licence has already been made to the Tanzanian
authorities. Solo holds a 25% interest in the Ntorya gas condensate
discovery and the wider Ruvuma PSA.
The information contained in this announcement is deemed by the
Company to constitute inside information for the purposes of the EU
Market Abuse Regulation No. 596/2014.
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 39 years of relevant experience in the oil
industry. Mr. Ritson is a member of the Society of Petroleum
Engineers (SPE), an Active Member of the American Association of
Petroleum Geologists (AAPG) and is a Fellow of the Geological
Society of London (BGS).
All estimates of resources included in this statement comply
with the 2007 Petroleum Resources Management System (PRMS) prepared
by the Oil and Gas Reserves Committee of the Society of Petroleum
Engineers (SPE).
For further information:
Solo Oil plc
Neil Ritson / Fergus
Jenkins +44 (0) 20 7440 0642
Beaumont Cornish Limited
Nominated Adviser and
Joint Broker
Roland Cornish +44 (0) 20 7628 3396
Shore Capital
Joint Broker
Jerry Keen
Beaufort Securities
Joint Broker
Jon Belliss
Buchanan (PR) +44 (0) 20 7408 4090
Ben Romney / Chris +44 (0) 20 7382 8300
Judd / Henry Wilson +44 (0) 20 7466 5000
Notes to Editors:
Solo Oil plc (Solo), is a natural resources investment company
with a diverse portfolio of onshore assets, principally in Europe
and Africa. The company seeks to deliver returns through early
stage investment in promising projects and uses management's own
sector expertise to assist in strategic asset development. Solo's
portfolio currently includes extensive interests in the prolific
Ruvuma Basin in Tanzania, the Horse Hill oil discovery in the Weald
Basin, Helium One Limited, the Tanzanian helium exploration
company, and Kiliwani North, a natural gas producing project in
Tanzania.
Glossary :
bcf billion cubic feet
---------- --------------------------------------
discovery a petroleum accumulation for
which one or several exploratory
wells have established through
testing, sampling and/or logging
the existence of a significant
quantity of potentially moveable
hydrocarbons
---------- --------------------------------------
in-place the volume of hydrocarbons, oil
or gas, estimated to be in place
within the reservoir converted
to standard temperature and pressure
---------- --------------------------------------
mmscfd million cubic feet per day
---------- --------------------------------------
PSA petroleum sharing agreement
---------- --------------------------------------
seismic the use of sound waves generated
by a controlled source to ascertain
the nature of the subsurface
structure, lithology and fluid
content
---------- --------------------------------------
tcf trillion cubic feet
---------- --------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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