TIDMSOLO
RNS Number : 0553D
Solo Oil Plc
24 April 2017
FOR IMMEDIATE RELEASE, Embargoed until 7 am 24 April 2017
SOLO OIL PLC
("Solo" or the "Company")
Ntorya Appraisal Area - Major Resource Upgrade
Solo is pleased to announce that in collaboration with operator,
Aminex plc ("Aminex"), it can report a material increase in its
estimate of gas initially in place ("GIIP") associated with the
Ntorya gas-condensate discoveries in the Ntorya Appraisal Area,
Tanzania. The potential of the Ntorya Appraisal Area, which
comprises approximately 750 square kilometres of the Ruvuma
Petroleum Sharing Agreement ("Ruvuma PSA"), has now been
successfully tested by two gas wells; Ntorya-1 and -2.
Following the Ntorya-2 well the Company now considers that the
Ntorya Appraisal Area contains proven mean gross GIIP of 466
billion cubic feet ("bcf"), a three-fold increase over the previous
estimate of 153 bcf which was independently audited by LR Senergy
in May 2015, prior to the drilling of Ntorya-2.
Highlights:
-- Mean gross GIIP increased by 200% from 153 bcf to 466 bcf
-- High estimate gross GIIP increased by 240% from 332 bcf to 1.13 tcf
-- Most likely gross Contingent Resources (2C) increased by 165%
from 70 bcf to 186 bcf (Solo estimate)
-- High estimate gross Contingent Resources (3C) increased by
230% from 232 bcf to 766 bcf (Solo estimate)
These new Solo contingent resource estimates cover the Ntorya
Appraisal Area only and do not include the potential of the
adjoining Ruvuma PSA exploration licences which is also being
reassessed.
Neil Ritson, Solo's Chairman commented:
"The Ntorya-2 well, in conjunction with the existing well and
seismic control, allow a new more confident and upgraded estimate
of the gas in place and the associated contingent resources
associated with the successful appraisal well. As a result Aminex
is currently applying for a 25-year development licence and is
working directly with the Tanzanian Government on means to
fast-track gas production."
The upgraded estimate follows the drilling and testing of the
Ntorya-2 appraisal well earlier this year which encountered a net
pay zone of 31 metres and tested gas at an average flow rate of 17
million standard cubic feet per day ("mmscfd") (approximately 2,830
barrels oil equivalent per day) through a 40/64-inch choke. The
previous well, Ntorya-1, was tested at a rate of 20 mmscfd through
a 1-inch choke. Solo believes that higher flow rates can be
achieved at Ntorya-2 during future production once the drilling
induced formation damage is removed.
According to the interpretation of the wireline logs, Ntorya-2
encountered the equivalent reservoir section seen in the Ntorya-1
well at a depth approximately 74 metres shallower. No formation
water was produced during the tests. The fluids recovered down-dip
at Ntorya-1 showed a higher condensate-gas ratio and this suggests
some fractionation of fluids with depth, further suggesting an
extensive gas column is present with in the Ntorya gas-condensate
accumulation.
Ntorya-2 also encountered traces of oil in the gross reservoir
interval. Aminex is currently updating the basin model in order to
optimise future drilling to maximise the intersection with the
reservoir section and to target potentially liquid hydrocarbon
bearing reservoirs in future wells, including Ntorya-3. Outside the
Ntorya Appraisal Area LR Senergy estimated 3 tcf of gross mean
undiscovered GIIP in the Ruvuma PSA and that remains to be further
evaluated.
Solo owns a 25% non-operating interest in the Ntorya Appraisal
Area, the Ruvuma PSA, and the Ntorya-1 and -2 wells, which are
operated by Aminex.
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 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 3794 9230
Beaumont Cornish
Nominated Adviser and
Joint Broker
Roland Cornish +44 (0) 20 7628 3396
Shore Capital
Joint Broker
Jerry Keen/Edward Mansfield
Beaufort Securities
Joint Broker
Jon Belliss
Buchanan
Investor and Public +44 (0) 20 7408 4090
Relations +44 (0) 20 7382 8300
Ben Romney/Chris Judd +44 (0) 20 7466 5000
Glossary :
2C denotes the mid estimate scenario
of contingent resources
--------------------- -----------------------------------------
3C denotes the high estimate scenario
of contingent resources
--------------------- -----------------------------------------
appraisal the collection of additional
data, usually in the form of
additional wells, on an existing
discovery prior to sanctioning
a development plan
--------------------- -----------------------------------------
boepd barrel of oil equivalent per
day
--------------------- -----------------------------------------
choke a device used to create a controlled
pressure drop and allow some
expansion of the gas and to restrict
flow
--------------------- -----------------------------------------
condensate gas condensates are liquids that
can condense from gas when the
temperature and pressure drop
sufficiently low, typically condensates
exhibit gravities of > 45 degree
API
--------------------- -----------------------------------------
contingent resources those quantities of petroleum
estimated, at a given date, to
be potentially recoverable from
known accumulations, but the
associated projects are not yet
considered mature enough for
commercial development due to
one or more contingencies
--------------------- -----------------------------------------
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
--------------------- -----------------------------------------
dry gas hydrocarbon gas produced with
no appreciable quantity of formation
water
--------------------- -----------------------------------------
flow or production a flow test or well test involves
test testing a well by flowing fluids
to surface, typically through
a test separator. Key measured
parameters are water, oil and
gas flow rates, downhole pressure
and surface pressure. The overall
objective is to identify the
well's capacity to produce hydrocarbons
at a commercial flow rate
--------------------- -----------------------------------------
GIIP gas initial in-place
--------------------- -----------------------------------------
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 standard cubic feet of
gas per day
--------------------- -----------------------------------------
pay or net pay reservoir or portion of a reservoir
formation that contains economically
producible hydrocarbons. The
overall interval in which pay
sections occur is the gross pay;
the portion of the gross pay
that meets specific criteria
such as minimum porosity, permeability
and hydrocarbon saturation are
termed net pay
--------------------- -----------------------------------------
Pmean the mean value in a calculated
probability distribution
--------------------- -----------------------------------------
PSA petroleum sharing agreement
--------------------- -----------------------------------------
reservoir a subsurface rock formation containing
an individual natural accumulation
of moveable petroleum
--------------------- -----------------------------------------
sandstone a clastic sedimentary rock whose
grains are predominantly sand-sized.
The term is commonly used to
describe consolidated sand or
a rock made of predominantly
quartz sand
--------------------- -----------------------------------------
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
--------------------- -----------------------------------------
wireline or electric tools used within the wellbore
logs to measure the rock and fluid
properties of the surrounding
formations
--------------------- -----------------------------------------
Appendix:
Table 1: Gas in place (GIIP) data, Ntorya Appraisal Area,
billion cubic feet (bcf)
Gross Net to Solo
------------------- -------------------- ------------------
P90 Pmean P10 P90 Pmean P10
------------------- ---- ------ ------ ---- ------ ----
Total
Ntorya Appraisal
Area 62 466 1,130 16 117 283
------------------- ---- ------ ------ ---- ------ ----
Source: Aminex, April 2017
Table 2: Contingent Resources Data, Ntorya Appraisal Area,
billion cubic feet (bcf)
Gross Net to Solo
------------------- -------------------------------------------------- ---------------------------------------------
Low Estimate (1C) Best Estimate High Estimate Low Estimate Best Estimate High Estimate
(2C) (3C) (1C) (2C) (3C)
------------------- ------------------ -------------- -------------- ------------- -------------- --------------
Total
Ntorya Appraisal
Area 39 186 766 10 47 192
------------------- ------------------ -------------- -------------- ------------- -------------- --------------
Source: Solo Oil plc, April 2017
This information is provided by RNS
The company news service from the London Stock Exchange
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