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Solo Oil Plc

Solo Oil plc Tanzania Operations Update

Solo Oil (LON: SOLO), a natural resources investment company focused on acquiring a balanced portfolio of production, development and exploration assets, noted today the RNS released by Aminex this morning, in which it includes the following update regarding Kiliwani North:

"The reprocessing of the select 2D seismic lines over the Kiliwani North Development Licence acreage is complete with minor re-iterations requested from the processor. Data from the reprocessing will benefit the design of a 3D seismic survey and remapping of the licence, using the reprocessed lines, will occur once we have received the final data. The Company continues to source equipment to perform the re-entry and remedial work on Kiliwani North-1. The re-entry, which has been designed to be carried out at minimal costs, is of value to investigate fluid levels in the well and provide an accurate bottom hole pressure measurement which will provide useful reservoir data for future operations and production and equipment is being ordered."

Aminex also provided an update regarding the Ruvuma Farm-out:

“Further to the Company’s announcement on 29 July 2019 that the longstop date for completion of the Ruvuma Farm-Out to ARA Petroleum Tanzania Limited was extended to 31 October 2019, the Company continues to await Tanzanian Government approval to gain an extension of the Mtwara Licence and transfer of the interest and operatorship of the PSA. All holders of PSAs are similarly awaiting the outcome of a review by the Attorney General’s office. The Company will update shareholders further in due course.”

Commenting on the update, Solo Oil’s Executive Chairman Alastair Ferguson said:

“We are wholly supportive of the Operator’s proposed work programme that aims to move the JV closer to re-establishing production from the field, whilst also gaining important reservoir data that can be used for future field development. The Company believes there is good upside potential to be realised from this asset and we look forward to reviewing the final data alongside the Operator. Solo’s growth strategy is predicated on establishing sustainable cash flow and we therefore look forward to seeing production from Kiliwani North-1 back on line in due course.

“We also remain committed to realising the value of our interest in Ruvuma, but the current situation continues to reaffirm that the Board have taken the right strategic decision to diversify the business in terms of geography and asset type, and take greater control over our future.”

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