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Solo Oil says restricted Ntorya-2 flows “fully meet” commercial requirements

Published: 07:35 08 Mar 2017 GMT

onshore oil operation
The well flowed at 2,833 boepd, and that was restricted

Solo Oil PLC (LON:SOLO) chief executive Neil Ritson says the gas flow rates measured in the Ntorya-2 well fully meet commercial requirements, even though the well’s output was restricted for technical reasons.

The AIM quoted group has a 25% stake in the project alongside partner and operator Aminex plc (LON:AEX), which today revealed the hotly anticipated well results.

The Ntorya-2 well is located some 1.5 kilometres from the original Ntorya-1 discovery well and it has intersected a much larger gas reservoir zone – cutting a 51 metre gross reservoir package (net pay estimated at around 30 metres) compared to the 4 metres of pay tested in Ntorya-1.

During drilling there was a significant influx of gas into the well, and as a result the company had to adapt which resulted in constricted gas flow during testing.

Nonetheless, Aminex said the limited flow of gas amounted to a rate of 17mln cubic feet per day, which would be 2,833 barrels oil equivalent per day.

“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,” Ritson said.

“Flow rates were restricted for technical reasons; however, they fully meet the requirements for a declaration of commerciality and application for a development licence.”

Ritson also highlighted that the forward work programme, which could include 3D seismic and drilling development wells, can lead to a field development project “of national significance” to the United Republic of Tanzania.

The presence of oil was also detected through the drill programme, with oil shows observed throughout. This adds another potentially valuable dimension to the project.

Subsequently, Aminex intends to rework its model of the basin to take into account the newfound oil potential.

Together the Ntorya-1 and Ntorya-2 wells are believed to have unearthed a “very significant resource in place” and Aminex says the results have confirmed the onshore Ruvuma PSA as being part of Tanzania’s world class basin.

It is anticipated that Aminex and partner Solo Oil will apply for a 25-year production licence for the Ntorya project, following a full analysis of the well results.

Aminex chief executive Jay Bhattacherjee, meanwhile, said: “Despite the measures we had to take to control the well during drilling, due to a large gas influx in the reservoir section, the Ntorya-2 test clearly supports our belief that there is a considerable gas basin to be exploited in our Ruvuma onshore acreage which we are looking forward to developing.

“This project should ultimately be of immense benefit to the Tanzanian economy and is an excellent result for our patient and supportive shareholders and all other stakeholders."

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