TIDMSOLO
RNS Number : 6059K
Solo Oil Plc
17 December 2018
17 December 2018
SOLO OIL PLC
("Solo" or the "Company")
Operational Update, Tanzania
Solo Oil plc (LSE AIM: SOLO) is pleased to note the announcement
made today by Aminex plc ("Aminex") relating to operations in
Tanzania and as set out in Appendix 1 below.
The Company holds a 25% beneficial interest in the Ruvuma PSA
and 8.3918% interest in Kiliwani North-1.
Dan Maling, Managing Director commented:
"We have been working closely with Aminex on reviewing the
forward operational programmes at both Ruvuma and Kiliwani. There
are now detailed cost estimates with operational plans in place.
While the work programme commitments remain contingent on
governmental approvals at Ruvuma, with our recent monetisation
efforts we are in a strong cash position with a liquid balance
sheet and are confident of being fully funded for next year's
planned well programme and G&A."
Alastair Ferguson, Solo's Chairman, commented:
"This update comes after a period of discussion and
collaboration planning between Solo and Aminex. We are pleased to
see Aminex's issuance of their circular and are supportive of their
planned farmout of the Ruvuma PSA to The Zubair Corporation LLC. We
regard this deal and the quality of the farminee as a significant
external validation of the project and look forward to working with
the new operator alongside Aminex to drive the development of the
Ruvuma gas project forward. We look forward to further updates from
Aminex as we continue to actively participate in the joint venture
management and planning processes."
For further information:
Solo Oil plc
Dan Maling
Alastair Ferguson +44 (0) 20 7440 0642
Strand Hanson (Nominated
Adviser)
James Spinney, Ritchie Balmer,
Frederick Twist +44 (0) 20 7409 3494
Shore Capital (Broker)
Jerry Keen
Buchanan (PR)
Ben Romney / Chris Judd / +44 (0) 20 7408 4090
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, UKOG plc with 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.
Appendix 1
17 December 2018
Aminex plc
("Aminex" or "the Company")
Operational Update
Highlights:
-- Chikumbi-1 drilling and 3D seismic programmes progressed and drilling rig selected
-- Kiliwani North-1 remediation work ongoing - gas flowed to plant and data being analysed
-- Areas for future 3D seismic surveys identified with intent to
progress low cost prospects in both Kiliwani North and Nyuni
Ruvuma PSA:
The Company has advanced drilling and seismic programmes over
the Ruvuma PSA acreage while it progresses satisfaction of
conditions required to close out a farm-out agreement signed with
the Zubair Group in early July 2018 ("the Farm-out"). An
extraordinary general meeting of shareholders will be held to
approve the Farm-out on 4(th) January 2019.
The Company has finalised the Chikumbi-1 executive drilling and
completions programmes, has identified and selected the service
companies required to operate all aspects of drilling and, based on
a competitive tender process, has selected Sakson Drilling and Oil
Services DMCC to drill the Chikumbi-1 well. The Company has also
identified and designed an approximately 220 km(2) 3D programme
over the Ntorya development area. Further, Aminex has signed a
conditional rig sharing agreement with Heritage Oil Limited in
Tanzania in order to reduce mobilisation/demobilisation costs for
both parties. Pending the successful completion of the Farm-out,
Aminex will be fully carried through to production, which will
include the drilling of multiple wells, seismic acquisition and
construction of associated infrastructure.
The Chikumbi-1 well is located within the Mtwara Licence of the
Ruvuma PSA, in Southern Tanzania, approximately 4 km west of the
successful 2017 Ntorya-2 appraisal well, in the onshore portion of
the Ruvuma Basin.
Chikumbi-1, which will be drilled to a total true vertical depth
of 3,485m, will fulfil one of two remaining exploration commitment
wells and, upon success, is intended to be completed as a producing
well in a future development programme.
The well will have two primary targets: to further delineate the
Ntorya Gas Field (which is projected to encounter stratigraphically
trapped Albian aged reservoirs, approximately 120 meters up-dip
from Ntorya-2 and approximately 195 meters up-dip from the Ntorya-1
discovery well) and to test a deeper, stratigraphically trapped
Late Jurassic Exploration target.
RPS Energy Consultants Ltd. ("RPS") has independently assigned
the Albian aged Ntorya Gas Field a mean un-risked GIIP (Gas
Initially in Place) of 1.87 TCF, with total combined gross 2C
Resources of 763 BCF, and has additionally assigned 936 BCF of 2U
Resources (previously equivalent to "Best Estimate" Prospective
Resource) to the Jurassic aged Chikumbi prospect.
Kiliwani North and Nyuni Area:
The Company engaged Schlumberger SEACO Inc. ("Schlumberger") to
remediate and troubleshoot a faulty sub surface safety valve
("SSSV") on its Kiliwani North-1 well. Schlumberger were mobilised
to location and the SSSV was repaired. During the operation the
well was fully opened and test gas flowed to the plant for a short
period. The Company believes that there is a fluid column in the
well and is analysing the operational and testing data.
The Kiliwani North licence is located off the East coast of the
Tanzanian mainland in shallow waters. The licence area contains
several islands, which provide onshore drilling opportunities, and
is on trend with the Songo Songo gas field. The licence has an
expiry date of 2036 with no further commitments, has a Gas Sales
Agreement in place and access to a Gas Facility with significant
ullage. The Kiliwani North gas field has recovered 6.4 BCF to date
which has generated $18.3 million in gross revenues.
As reported earlier in the year RPS have attributed a mean GIIP
of 30.8 BCF to the Kiliwani North structure, which is believed to
be compartmentalised. Mapping by Aminex has identified a structural
lead, Kiliwani South, with a mean estimated GIIP of 57 BCF.
The Company is the operator of both the Kiliwani North
Development Licence and the adjacent Nyuni Area PSA with 63.8304%
and 100% working interests respectively. The Company has identified
areas to conduct the acquisition of 3D seismic with the intent of
progressing low-cost drilling prospects which can be tied into the
existing facilities and monetised.
For further information, please refer to the Aminex website
(www.aminex-plc.com) or contact the following:
Aminex PLC
Jay Bhattacherjee, Chief Executive Officer +44 (0) 20 3198
8415
Max Williams, Chief Financial Officer
Shore Capital
Jerry Keen +44 (0) 20 7408 4090
Davy
Brian Garrahy +353 (0) 1 679 6363
Camarco
Billy Clegg / James Crothers / Daniel Sherwen +44 (0) 20 3757
4980
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END
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