# Solo Oil plc Significant external validation of the Tanzania project

- Link: https://www.directorstalkinterviews.com/solo-oil-plc-significant-external-validation-of-the-tanzania-project/412763193
- Published: 2018-12-17T07:15:36+00:00
- Author: Giles Arbor

**Solo Oil plc** (LON: SOLO) has today noted the announcement made today by Aminex
plc relating to operations in Tanzania and as set out 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 Oil plc 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.”

**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. An extraordinary general
meeting of shareholders will be held to approve the Farm-out on 4th 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 km2 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. 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. to remediate and troubleshoot a faulty
sub surface safety valve 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.

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