Solo Oil Plc Kiliwani North Operations Update (5922V)

TIDMSOLO

RNS Number : 5922V

Solo Oil Plc

06 November 2017

FOR IMMEDIATE RELEASE

6 November 2017

SOLO OIL PLC

("Solo" or the "Company")

Kiliwani North Operations Update

Solo notes today that Aminex plc ("Aminex") the operator of the Kiliwani North Development Licence ("KNDL") in Tanzania has reported that production from the Kiliwani North-1 ("KN-1") well has been temporarily reduced to gas rates of below 1 million cubic feet per day ("mmscfd"). KN-1, which has recovered in excess of 6 billion cubic feet ("bcf") to date, is now thought to be draining only a single compartment within the greater Kiliwani North structure and is exhibiting slow recharge across faults or via restricted pathways within the structure.

Aminex will use this period to collect additional data and is evaluating a number of options to maximise future gas recovery and increase production rates from the Kiliwani North resources. Options currently under evaluation include installation of temporary wellhead compression and also maximising the recovery of KN-1 gas resources through step-out prospects on the KNDL through a review of existing seismic data.

Based on available information Solo does not currently believe that there will be a material impact on the 28 bcf of gross resources independently estimated for KN-1. Solo holds a 7.55% interest in the KN-1 well and the KNDL.

KN-1 gas sales receivables continue to be settled on a monthly basis and due to the existing time-lag associated with past payments this shut-in will have no material impact on forecast cash flow in 2017.

Elsewhere in Tanzania in the Ruvuma PSA, Solo is preparing for the monetisation of the gross estimated gas-in-place 1.34 trillion cubic foot ("tcf") Ntorya discovery, for which the application for a development licence has already been made to the Tanzanian authorities. Solo holds a 25% interest in the Ntorya gas condensate discovery and the wider Ruvuma PSA.

The information contained in this announcement is deemed by the Company to constitute inside information for the purposes of the EU Market Abuse Regulation No. 596/2014.

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 39 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).

All estimates of resources included in this statement comply with the 2007 Petroleum Resources Management System (PRMS) prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE).

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 
   Beaufort Securities 
   Joint Broker 
   Jon Belliss 
   Buchanan (PR)              [phone] 
   Ben Romney / Chris          [phone] 
   Judd / Henry Wilson         [phone] 
 

Notes to Editors:

Solo Oil plc (Solo), is a natural resources investment company with a diverse portfolio of onshore assets, principally in Europe and Africa. The company seeks to deliver returns through early stage investment in promising projects and uses management's own sector expertise to assist in strategic asset development. Solo's portfolio currently includes extensive interests in the prolific Ruvuma Basin in Tanzania, the Horse Hill oil discovery in the Weald Basin, Helium One Limited, the Tanzanian helium exploration company, and Kiliwani North, a natural gas producing project in Tanzania.

Glossary :

 
 bcf         billion cubic feet 
----------  -------------------------------------- 
 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 
----------  -------------------------------------- 
 in-place    the volume of hydrocarbons, oil 
              or gas, estimated to be in place 
              within the reservoir converted 
              to standard temperature and pressure 
----------  -------------------------------------- 
 mmscfd      million cubic feet per day 
----------  -------------------------------------- 
 PSA         petroleum sharing agreement 
----------  -------------------------------------- 
 seismic     the use of sound waves generated 
              by a controlled source to ascertain 
              the nature of the subsurface 
              structure, lithology and fluid 
              content 
----------  -------------------------------------- 
 tcf         trillion cubic feet 
----------  -------------------------------------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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