Solo Oil (LON:AEX) and Aminex (LON:AEX) are now ‘ready’ to start producing gas from the Kiliwani North field onshore Tanzania.
The gas sales agreement is currently close to being complete, though finalised payment protection clauses and guarantees are awaited before signing.
A gas well, which previously tested at 40mln cubic feet per day, has been completed and gas sales are anticipated from the well head to start during the third quarter.
"Considerable progress has been made recently in Tanzania and we expect to have news of both commercial gas sales at Kiliwani North and appraisal drilling in the Ntorya gas discovery shortly,” said Neil Ritson, Solo Oil’s chief executive.
“The imminent commencement of gas sales at Kiliwani North represents our first revenue generating investment in Africa and is eagerly awaited by the company and its shareholders."
Solo has a 6.5% stake in Kiliwani North, and has an option to acquire another 6.5%, meanwhile Aminex currently owns 58.5% and is the operator.
Kiliwani North is located nearby to Wentworth Resources' (LON:WRL) Mnazi Bay project, which in the past week achieved ‘first gas’ production.