Solo Oil Plc Ntorya-2 Initial Well Results (0509W)

TIDMSOLO

RNS Number : 0509W

Solo Oil Plc

06 February 2017

FOR IMMEDIATE RELEASE, 7:00 am 6 February 2017

SOLO OIL PLC

("Solo" or the "Company")

Ntorya-2 Initial Well Results

Solo is pleased to announce that the Ntorya-2 appraisal well in the Ruvuma PSA in Tanzania has been successfully drilled to a depth of approximately 2,750 metres and has encountered a 50-metre thick gas-bearing reservoir interval, in excess of the Company's prognosis prior to drilling.

The well intersected a gross gas-bearing sandstone reservoir unit of approximately 51 metres thickness at a drilled depth of 2,596 metres. Preliminary petrophysical analysis using the Logging While Drilling ("LWD") logs indicates between 25 to 30 metres of net hydrocarbon-bearing reservoir within the gross interval. Significant gas influxes and higher than expected pressures where encountered whilst drilling the reservoir section. The well is currently being deepened to a total depth of approximately 2,780 metres to allow for the setting of a 7-inch liner below the reservoir interval.

Neil Ritson, Solo's Chairman, commented;

"We are extremely pleased with the results of the well which fully confirm the presence of thicker gas bearing reservoirs up dip from the gas condensate discovery at Ntorya-1. These results move us a significant step forward in the commercialisation of the Ntorya discovery and we look forward to some exciting further results in the coming weeks."

Wireline logging will be conducted, after which a 7" liner will be run over the reservoir section. Detailed petrophysical analysis will be conducted on both the LWD and wireline logs. Preparations are also currently underway for a comprehensive flow test of the well.

The well also encountered traces of oil in the gross reservoir interval and operator Aminex plc is now evaluating the implications of this positive development through an updated basin model.

The well was spudded in the onshore Ruvuma Basin PSA on 21 December 2016 in order to further appraise the existing Ntorya discovery. The Ntorya-2 well was targeting the same sandstone channel complex as found at Ntorya-1, but located further up-dip. The well location is approximately 1,500 metres southwest from the Ntorya-1 discovery which (as reported in June 2012) flowed gas at a rate of 20 million standard cubic feet per day, with 139 barrels of associated condensate, from a 3.5-metre sandstone interval on test.

Depending on the results of the well test, Aminex and Solo expect to apply for a 25-year development licence over the Ntorya Appraisal Area. The Ntorya field is located approximately 40 kilometres from the Madimba gas processing plant, which receives gas into the National Gas Pipeline system to Dar es Salaam.

Solo has a 25% non-operating interest in the Ruvuma PSA, and in the Ntorya discovery and Ntorya-2 well.

Qualified Person's Statement:

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

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 
   Cassiopeia Services 
   Ltd 
   Investor and Media         [phone] 
   Relations                   [phone] 
   Stefania Barbaglio          [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 
---------------------  ----------------------------------------- 
 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 
---------------------  ----------------------------------------- 
 flow 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 
---------------------  ----------------------------------------- 
 LWD                    logging while drilling, electric 
                         logs installed within the bottom 
                         hole assembly of the drilling 
                         string to measure the rock and 
                         fluid properties of the surrounding 
                         formations whilst drilling 
---------------------  ----------------------------------------- 
 PSA                    petroleum sharing agreement or 
                         contract 
---------------------  ----------------------------------------- 
 petrophysics           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 
---------------------  ----------------------------------------- 
 wireline or electric   tools used within the wellbore 
  logs                   to measure the rock and fluid 
                         properties of the surrounding 
                         formations 
---------------------  ----------------------------------------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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February 06, 2017 02:00 ET (07:00 GMT)