Hot Features
Premium
Register for real-time alerts, custom portfolio, and market movers
It’s payday today at Solo Oil plc (LSE:SOLO), following an independent technical evaluation saying there is about 5.75 trillion cubic feet of unrisked gas-initially-in-place (GIIP) “for identified leads, prospects and discoveries” in the company’s 12,000-square kilometre acreage within the Rovuma Basin, now an established oil and gas resource in the territories of Tanzania and Mozambique.
The report, prepared by Australia-based ISIS Petroleum Consultants (ISIS), is the first evaluation of the hydrocarbon potential following the completion of drilling operations for the Ntorya-1 well on 30th April 2012.
Gas was discovered from the Ntorya-1 well on 27th February 2012 in a much deeper portion than was originally targeted.
Enormous Potential
“The existence of identified discoveries, leads and prospects with mean potential of 5.75 tcf and a further significant potential for oil underlines the enormous potential of the Ruvuma PSA,” said Solo Oil Executive Director, Neil Ritson.
Back on 7th February, shares of Solo Oil plunged 17.63% when the company announced no oil or gas was found on the targeted depth between 1,800 and 1,900 metre, which caused Tullow Oil plc, which held 25% interest at that time, to give up its share in the Petroleum Sharing Agreement (PSA) with Solo Oil and Aminex plc.
Twenty days later, 25 metres of gas was discovered more than 800 metres deeper than the original target depth.
Solo Oil now holds 25% interest in the Rovuma PSA, following the withdrawal by Tullow Oil, with Aminex controlling 75% stake.
The Ntorya-1 well is now flowing at a rate of 20.1 million cubic feet per day, equivalent to 3,350 barrels of oil per day, as announced by Solo Oil on 27th June 2012.
“Based on the reservoir data from the well combined with seismic mapping, ISIS has calculated a mean discovered GIIP of 178 bcf, with a P10 upside of 284 bcf at Ntorya,” Solo Oil said, saying further that vast potential around the Ntorya-1 well can be discovered through a seismic infill programme.
Together with the operator Aminex, Solo Oil plans to further carry out a 2D seismic acquisition programme to appraise the Ntorya-1 discovery and to upgrade the highest potential leads to drillable status.
“A minimum of two further exploration wells are planned for the Ruvuma PSA in the current exploration phase. Additional data will be targeted at refining the resource estimates and preparing for the next phase of drilling within the PSA.”
Company Spotlight
Solo Oil plc holds onshore and offshore interests in oil and gas exploration, development, and production assets in Africa, Europe, and North America.
Listed on the Alternative Investment Market on the London Stock Exchange, shares of Solo Oil gained 0.05 pence, or 10.31%, to 0.535 pence a share, 11 AM GMT, with a total volume of more than 52 million shares.
