Test Results Ntorya-2, Tanzania

RNS Number : 8049Y

Solo Oil Plc

08 March 2017

 

FOR IMMEDIATE RELEASE, Embargoed until 7 am                                                                 8 March 2017

SOLO OIL PLC

("Solo" or the "Company")

Test Results Ntorya-2, Tanzania

Solo is pleased to confirm that the Ntorya-2 appraisal well has now been successfully flow tested and is being suspended for future gas production.  Ntorya-2 was drilled in the onshore Ruvuma Basin of southern Tanzania, on the Mtwara Licence (Solo 25%, Aminex plc ("Aminex") 75% and operator) part of the onshore Ruvuma Production Sharing Agreement (the "Ruvuma PSA").

Highlights:

·     Total 51 metres gross sandstone reservoir section was penetrated  associated with significant gas influx and high pressure whilst drilling

·     Flow testing performed over a gross 34 metres interval of gas pay in what is interpreted as the dry gas portion of the reservoir

·     Flow rates, limited by choke size, were of dry, high quality, gas at an average stable rate of 17 million standard cubic feet per day ("mmscfd") (approximately 2,830 barrels oil equivalent per day ("boepd"))

Neil Ritson, Solo's Chairman commented:

"The well exceeded our pre-drill expectations for both reservoir extent and pressure.  Ntorya-2, when taken together with the Ntorya-1 discovery well and the mapped seismic features, clearly indicates a gas volume of significant commercial interest.  Flow rates were restricted for technical reasons; however, they fully meet the requirements for a declaration of commerciality and application for a development licence.   A forward work programme, including perhaps acquiring 3D seismic data and drilling further appraisal/development wells, will we believe lead to a gas development of national significance.  This is a highly significant well result for Solo, our partner Aminex and to the United Republic of Tanzania."

At a drilling depth of 2,593 metres the well encountered a gross gas-bearing reservoir unit of approximately 51 metres thickness.  This reservoir section was associated with significant gas influx during drilling and the reported pressures were higher than expected.  Following the previous announcement on 6 February 2017, the well was drilled to a final total vertical depth of 2,795 metres and a production liner was then cemented in place prior to flow testing. 

The well was subsequently tested over a gross 34-metre zone, interpreted as dry gas pay, for a total period of approximately 6 ½ days through a variety of choke sizes; not exceeding 40/64-inch.  In order to preserve reservoir integrity and in view of the pressures, flow was limited by the choke and during the test the well flowed dry, high quality, gas at an average stable rate of 17 mmscfd (approx. 2,830 boepd) through a 40/64-inch choke.  Strong pressure recovery occurred in all instances during the well test build-up periods.    Aminex has also reported that mud invasion during the drilling of the reservoir may have caused some formation damage and have tempered gas flow rates.  No open-hole flow rate was attempted during the flow tests to avoid any risk of a breakdown in reservoir integrity.

According to the interpretation of the wireline logs, Ntorya-2 encountered the equivalent reservoir section seen in the Ntorya-1 well at a depth approximately 74 metres shallower.   No formation water was produced during the tests.  Aminex believe that the absence of water on test confirms the previous interpretation that the Ntorya-1 and Ntorya-2 area contains a substantial volume of gas in place.  Following receipt of further analysis Aminex will be able to revise their estimates of in-place gas volumes. 

The Ntorya-2 well encountered the reservoir at a shallower depth in the structure and condensate was not observed.  The fluids recovered down-dip at Ntorya-1 showed a higher condensate-gas ratio and this suggests some fractionation of fluids with depth, further suggesting an extensive gas column is present with in the Ntorya gas-condensate accumulation.

Ntorya-2 also encountered traces of oil in the gross reservoir interval.  Aminex is updating the basin model to determine the optimal drilling depths and locations for future development wells.  It is anticipated that following a complete interpretation of all the data from the well Solo and Aminex will apply for a 25-year development licence over the Ntorya appraisal area.  Ntorya-2 will be suspended, as was Ntorya-1, as a future production well.

Solo owns a 25% non-operating interest in the Ruvuma PSA, and the Ntorya-1 and -2 wells, which are operated by Aminex plc.  

Qualified Person's Statement:  

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chairman and Director for Solo Oil plc, who has over 38 years of relevant experience in the oil industry.  Mr. Ritson is a member of the Society of Petroleum Engineers (SPE), an Active Member of the American Association of Petroleum Geologists (AAPG) and is a Fellow of the Geological Society of London (BGS).

For further information:

Solo Oil plc Neil Ritson	[phone]
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish	[phone]
Shore Capital Joint Broker Jerry Keen Beaufort Securities Joint Broker Jon Belliss	[phone] [phone]

Glossary :

appraisal	the collection of additional data, usually in the form of additional wells, on an existing discovery prior to sanctioning a development plan
boepd	barrel of oil equivalent per day
choke	a device used to create a controlled pressure drop and allow some expansion of the gas and to restrict flow
condensate	gas condensates are liquids that can condense from gas when the temperature and pressure drop sufficiently low, typically condensates exhibit gravities of > 45 degree API
discovery	a petroleum accumulation for which one or several exploratory wells have established through testing, sampling and/or logging the existence of a significant quantity of potentially moveable hydrocarbons
dry gas	hydrocarbon gas produced with no appreciable quantity of formation water
flow or production test	a flow test or well test involves testing a well by flowing fluids to surface, typically through a test separator. Key measured parameters are water, oil and gas flow rates, downhole pressure and surface pressure. The overall objective is to identify the well's capacity to produce hydrocarbons at a commercial flow rate
in-place	the volume of hydrocarbons, oil or gas, estimated to be in place within the reservoir converted to standard temperature and pressure
liner	a length of casing that runs from a set point, such as total depth, to a point part way up inside the previously set casing string
mmscfd	million standard cubic feet of gas per day
pay or net pay	reservoir or portion of a reservoir formation that contains economically producible hydrocarbons. The overall interval in which pay sections occur is the gross pay; the portion of the gross pay that meets specific criteria such as minimum porosity, permeability and hydrocarbon saturation are termed net pay
PSA	petroleum sharing agreement
pressure build-up	the monitoring of well pressure with the well shut-in following a flowing period
petrophysics or petrophysical analysis	the study of the physical and chemical properties of rock formations and their interactions with fluids
reservoir	a subsurface rock formation containing an individual natural accumulation of moveable petroleum
sandstone	a clastic sedimentary rock whose grains are predominantly sand-sized.  The term is commonly used to describe consolidated sand or a rock made of predominantly quartz sand
seismic	the use of sound waves generated by a controlled source to ascertain the nature of the subsurface structure, lithology and fluid content
suspended	(a well) left in a safe situation by means of downhole barriers but suitable for later re-entry and use for further drilling, testing or production
wireline or electric logs	tools used within the wellbore to measure the rock and fluid properties of the surrounding formations

 

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