Aminex plc (LON:AEX) and Solo Oil PLC (LON:SOLO) said they have received their first payment for gas pumped from their Kiliwani North-1 well in Tanzania.
The sum banked from the Tanzania Petroleum Development Corporation (TPDC) wasn’t disclosed, although Solo chairman Neil Ritson said it was “quite small”, reflecting the initial commissioning rates.
The transaction was made in dollars, per the agreement with the TPDC, and was paid promptly.
Aminex, the operator, owns just under 56% of Kiliwani, while Solo has just over 6%. The other owners are the TPDC, RAK Gas and Bounty Oil & Gas.
Solo’s Ritson estimates that at a production rate of 25mln cubic feet a day the company's monthly income from the gas well will be US$150,000.
"[We are] delighted that the first payment for gas from the Kiliwani North field has been made with minimal delay,” he said.
“Whilst the first payment is quite small, reflecting initial commissioning rates, we are pleased that an income stream has now commenced.
“Future payments will be larger and create an underlying cash flow from operations that will support Solo's ongoing investments.”