Ruvuma Basin update

RNS Number : 3721R

Solo Oil Plc

11 September 2014

 

For Immediate Release

11 September 2014

SOLO OIL PLC

("Solo" or "Company")

Additional Update, Ruvuma Basin Resources

Solo today announces that it has been informed by the operator that the interpretation of the newly acquired seismic data has extended the potential of the Ntorya appraisal area, and has further upgraded the mean gas in place resource estimate to 2.3 tcf, by joining the Ntorya discovery with the adjacent Likonde prospect in the Ruvuma Petroleum Sharing Contract ("PSC") in onshore southern Tanzania.

Neil Ritson, Solo Executive Director, commented:

"Ongoing work by the operator is revealing significant additional upside in the Ruvuma PSC and the new seismic data has been able to shed light on the significance of the shows that were seen at Likonde-1 and how those relate to the discovery made at Ntorya-1.  This all supports our belief that the Ruvuma will rapidly evolve as a gas, and perhaps oil, development area in the next few years, supported by the access to a ready market in Dar es Salaam to which the area is now connected by a pipeline."

The new interpretation has shown that an additional target exists for an appraisal well that would intersect the Ntorya gas condensate sands and an extension of the Lower Tertiary sands that were found to have oil and gas shows in the earlier Likonde-1 well to the north.  This additional target has further increased the recently announced resource potential from 1.9 to 2.3 trillion cubic feet ("tcf") mean gas initially in place ("GIIP"). 

The Likonde-1 well penetrated 97 metres of net sand with an average porosity of 17% within a 316-metre gross Lower Tertiary sand sequence with significant shows and a deeper Jurassic zone, containing 250 metres of stacked sandstones with extensive oil and gas shows.  The Likonde-1 results suggest that there is potential for an oil play in the Ruvuma basin.  The deeper sandstones were not logged at the time, as the well was prematurely terminated in the deepest objective at 3,647 metres due to the influx of high pressure gas.

The new seismic interpretation, using the recently acquired higher quality 2D seismic data, shows that the Likonde prospect comprises two distinct channel sands of which the shallower southern channel extends over the mapped Ntorya Cretaceous gas sand.  Ntorya-1, drilled in 2012, failed to intersect this Likonde Tertiary sand channel, which lies just north of the well, but discovered a deeper Cretaceous gas sand that tested gas at a rate of 20.1 million cubic feet per day (equivalent to 3,350 barrels of oil per day) and 139 barrels per day of 53 degree API gravity associated condensate from a 3.5 metre perforated interval through a 1 inch choke.  The discovery well was completed for eventual production.

In November 2013, independent consultants, ISIS, calculated that the Ruvuma PSC contained unrisked prospective resources of over 5 tcf (mean GIIP) in known prospects and leads.  The recent 2D seismic has shown that this original estimate can now be increased.

The Ruvuma PSC predominantly 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 and oil shows represents a further positive aspect of the onshore play, since liquid hydrocarbons add considerable further commercial value to the discovered gas and suggest the presence of a potential oil play; which has yet to be fully investigated. 

The Chinese built gas pipeline from Mtwara to Dar es Salaam is currently being commissioned in 2014 and due to its close proximity to the Ntorya/Likonde area provides an early route to commercialize gas discovered in the Ruvuma PSC.

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. 

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]

 

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