Solo Oil Plc Upate Ruvuma PSA, Tanzania (7074F)

TIDMSOLO

RNS Number : 7074F

Solo Oil Plc

01 August 2016

FOR IMMEDIATE RELEASE, 7 am 1 August 2016

SOLO OIL PLC

("Solo" or the "Company")

Update Ruvuma PSA, Tanzania

Solo Oil is pleased to announce that it has been advised by the operator Aminex plc ("Aminex") that the Mtwara Licence, of the Ruvuma Production Sharing Agreement ('Ruvuma PSA') in Tanzania, which was due to expire in December 2016, has now received formal Ministerial approval and signature for an extension of one year.

The Mtwara Licence, which includes the Ntorya Appraisal Area where the Company has an existing discovery well, Ntorya-1, that was tested at a rate of 20 million standard cubic feet per day ("mmscfd") of gas with 139 barrels of associated condensate per day.

In related news, Aminex has also advised that civil work for the construction of drilling site for the Ntorya-2 appraisal well has now commenced and it is expected that the well pad will be completed within approximately 10 weeks.

The Company has a 25% working interest in the Mtwara Licence and in Ntorya-2 which is located approximately 1,500 metres south west of the Ntorya-1 discovery well. The well will satisfy the Company's appraisal drilling obligations in the Mtwara Licence, after which the Company, jointly with Aminex, intends to apply for a 25 year development licence subject to its success.

Neil Ritson, Solo's Chairman, commented:

"Solo is delighted with progress being made towards appraising the discovery made at Ntorya-1 which is estimated to have the potential for over 1 tcf of gas in place. The Company is currently reviewing its options for funding its share of the planned well costs and is in early discussions with potential farm-in partners."

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 energy sector. 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.

For further information:

 
 Solo Oil plc 
  Neil Ritson 
  Fergus Jenkins             [phone] 
 
 Beaumont Cornish Limited 
  Nominated Adviser and 
  Joint Broker 
  Roland Cornish             [phone] 
  Shore Capital 
   Joint Broker 
   Jerry Keen (Corporate 
   Broker) 
   Bell Pottinger 
   Public Relations 
   Henry Lerwill 
   Cassiopeia Services 
   LLP                        [phone] 
   Investor Relations          [phone] 
   Stefania Barbaglio          [phone] 
 

Glossary:

 
 mmscfd   million standard cubic feet of gas per day 
-------  ------------------------------------------- 
 tcf      trillion standard cubic feet of gas 
-------  ------------------------------------------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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August 01, 2016 02:00 ET (06:00 GMT)