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Solo Oil is excited about imminent new drilling in Tanzania

Published: 07:36 05 Dec 2016 GMT

Onshore oil drilling
Ntorya-2 will be a keenly watched project for investors

Solo Oil PLC (LON:SOLO) chairman Neil Ritson says he is excited about the upcoming drilling in Tanzania where the company is partnered by Aminex.

Aminex this morning told investors that drilling will get underway soon for the Ntorya-2 appraisal well.

Solo Oil’s partner is the operator and 75% stakeholder in Ntorya, and it said that an independent inspection of the contracted drill rig has now been completed and the project is scheduled to start in mid-December.

Ntorya-2 is to be located some 1.5 kilometres from the original Ntorya discovery well, which was at the fringes of the reservoir. The well is designed to test the reservoir up-dip where the feature is believed to be thicker.

The new programme’s second well, Ntorya-3, is currently planned to be a further step-out - it will be 5km from the original Ntorya well – at what has been modelled and seen in seismic to be the thickest part of the reservoir.

Aminex meanwhile continues to produce gas from the Kiliwani North project, also in Tanzania, where it says revenues from gas sales are now established.

The company confirmed that the gas is being sold at US$3 per mln British thermal units. Gas is sold from the wellhead, meaning Aminex doesn’t have to pay for transportation, and the company highlighted that it is a fixed contract which is not linked to changing market prices.

Solo Oil owns a 25% stake in Ntorya, and it has 7.125% of Kiliwani North.

Neil Ritson, in a statement, said: “News from Aminex … confirms that both operations remain on schedule. 

“Solo is especially excited that the spud of the Ntorya appraisal well is now imminent since this well has significant upside potential for Solo's asset holdings in Tanzania.

“The receipt of regular gas payments from TPDC is also encouraging and will support the investments being made in Tanzania."

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