Share Name Share Symbol Market Type Share ISIN Share Description
Solo Oil LSE:SOLO London Ordinary Share GB00B1TYBN97 ORD 0.01P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.01p +1.85% 0.55p 0.54p 0.56p 0.565p 0.54p 0.54p 143,382,111.00 16:08:29
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 0.0 -2.8 -0.1 - 38.43

Solo Oil Plc Test Results Ntorya-2, Tanzania

08/03/2017 7:01am

UK Regulatory (RNS & others)


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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 1/2 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                +44 (0) 20 3794 9230 
 
 Beaumont Cornish Limited 
  Nominated Adviser and 
  Joint Broker 
  Roland Cornish             +44 (0) 20 7628 3396 
  Shore Capital 
   Joint Broker 
   Jerry Keen 
   Beaufort Securities 
   Joint Broker               +44 (0) 20 7408 4090 
   Jon Belliss                 +44 (0) 20 7382 8300 
 

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     a flow test or well test involves 
  test                   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           the study of the physical and 
  or petrophysical       chemical properties of rock formations 
  analysis               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   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

END

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