Drilling Update Ntorya-1, Tanzania

RNS Number : 6118A

Solo Oil Plc

02 April 2012

 



For Immediate Release

2 April 2012

SOLO OIL PLC

("Solo" or the "Company")

Drilling Update Ntorya-1, Tanzania

Solo today announces a further update ondrilling at the Ntorya-1 discovery well in the Ruvuma Basin onshore in southern Tanzania. 

On the 27 February 2012, Solo and Aminex reported that a gas discovery had been made in a 25 metre gross Cretaceous sand interval between 2,660 metres and 2,685 metres where a 3 metre net gas bearing pay zone in sandstones having 20% porosity at the top and a 16.5 metre thick lower sandstone interval with further possible gas pay had been logged. 

A 7 inch liner has now been successfully run from the 9 5/8 inch casing at 1,535 metres to total depth of 2,750 metres and cemented in place.  Drilling is now proceeding at 2,845 metres to investigate a prominent seismic event at approximately 3,000 metres.   Oil shows were previously logged in the Likonde-1 well, drilled in 2010, and exploring this deeper target offers the possibility of finding liquid hydrocarbons.

Once the well has been deepened the Caroil-6 rig will be demobilised and the well will then be flow tested once suitable testing equipment can be mobilised to the well site.

As previously announced, Tullow Oil ("Tullow") elected not to participate in the Ntorya-1 well below 2,500 metres.  A Deed of Assignment ("Deed") has now been executed amongst Aminex, Solo and Tullow, whereby Tullow's equity in the entire Petroleum Sharing Agreement ("PSA") will be transferred pro-rata to Aminex and Solo.  This Deed has now been approved by the Tanzanian Government and Aminex and Solo have committed to the first extension period of the Ruvuma PSA with an active programme of seismic acquisition planned for later in 2012. 

Participants in the discovery and the Ruvuma PSA are now:

Ndovu Resources Ltd (Aminex)                 75% (operator)

Solo Oil plc                                                         25%

With Aminex and Solo having increased their respective interests in the Lindi and Mtwara Licences, the parties have agreed to jointly seek expressions of interest from global exploration companies to participate in the Ruvuma PSA acreage, including the 676 square kilometre offshore portion adjacent to Block 1, owned by BG and Ophir.  The Block 1 partners recently announced the discovery of 4.5 TCF gas at their Jodari-1 well approximately 27 kilometres from the Ruvuma PSA.

Neil Ritson, Solo Executive Director, commented; 

"The discovery zone in the well is now successfully secured and we are keen to test the deeper levels before flow testing the discovery.  Solo is also delighted to have increased our interest in the PSA at this exciting time and when the Ruvuma Basin in both Tanzania and Mozambique is seeing unprecedented levels of activity and discovery."

Competent Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Solo Oil Plc who has 35 years of relevant experience in the oil industry.  Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.

For further information:

Solo Oil plc David Lenigas Neil Ritson	[phone]
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish	[phone]
Old Park Lane Capital Plc Joint Broker Michael Parnes Luca Tenuta Shore Capital Joint Broker Pascal Keane Jerry Keen (Corporate Broker) Pelham Bell Pottinger                             Public Relations Mark Antelme  Henry Lerwill	[phone] [phone] [phone]

 

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