Ntorya Gas-Condensate Development, Tanzania

RNS Number : 2987D

Solo Oil Plc

27 March 2014

 



For Immediate Release

27 March 2014

SOLO OIL PLC

("Solo" or "Company")

Ntorya Gas-Condensate Development, Tanzania

Solo today announces that it has been informed by the operator that the seismic data required to assist in the selection of future drilling locations at the onshore Ntorya gas-condensate discovery is currently underway in south-east Tanzania.

A programme of up to 250 kilometres of full-fold 2D seismic is currently in progress on the Ntorya Appraisal Licence and will be tied to the Likonde-1 well in the adjacent Lindi Licence of the Ruvuma Petroleum Sharing Contract ("PSC").  Extra effort will be made on static corrections to ensure the highest possible quality of data is secured on this data which is designed to infill the existing 2D grid used for the Ntorya discovery. This new seismic data will enhance the value of the original Ntorya discovery and optimise the location of future production wells.

The Ntorya-1 well was tested over an initial 3.5 metre sand interval at a rate 20.1 million cubic feet per day (equivalent to 3,350 barrels of oil per day), with an estimated additional 140 barrels per day of 48 degrees API condensate.   Unrisked contingent in place gas resources of 1.1 trillion cubic feet have been estimated for Ntorya, of which 178 billion cubic feet are considered discovered by the Ntorya-1 well.

The Ruvuma PSC covers the onshore extension of the highly prolific basin in which multiple giant gas fields have been discovered offshore in both Tanzania and Mozambique during recent years. The presence of condensate represents a further positive aspect of the onshore play, since liquid hydrocarbons add considerable further commercial value and suggest the presence of a potential oil play; which has yet to be discovered.

Neil Ritson, Solo Executive Director, commented:

"The Ntorya discovery is a significant onshore find in the Ruvuma Basin. It is now time to move the discovery to the next phase of the commercialisation process, including exploring the option to tie the Ntorya Field into the new US$1.2 billion Chinese-built gas pipeline project currently being constructed from Mtwara to Dar es Salaam. This new 36" pipeline will pass approximately 20 kilometres from the Ntorya well and is reported to be nearing completion.  This creates the opportunity for Ntorya's production to be swiftly monetised. Solo will be working with the operator to secure gas allocation into the pipeline in what marks a potentially transformational event for Solo Oil."

Acquisition and processing of the 2D seismic data is expected to take between 4 and 5 months to complete. Participants in the Ruvuma PSA are currently; Ndovu Resources Ltd (Aminex) 75% (operator) and Solo Oil Plc 25%.

Competent Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Executive Director for Solo Oil Plc who has over 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.

NOTE: The terms "Discovered" and "Undiscovered" Gas Initially-in-Place are used in accordance with the SPE Petroleum Resources Management System classification of 2007.  Previously; Contingent and Prospective Gas Initially-in-Place numbers are equivalent respectively to the Discovered and Undiscovered GIIP classification.

For further information:

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

 

END

 

 

MSCFQLLLZXFFBBK