Solo Oil PLC (LON:SOLO) told investors it will focus its cash on the higher potential of the larger Ruvuma joint venture, rather than take up an option for more of the revenue generating Kiliwani North field.
The AIM quoted company is partnered with Aminex (LON:AEX) in both projects. It has 25% of the Ruvuma production sharing contract (PSC) in Tanzania and it also has 7.125% of Kiliwani North but it is declining to acquire a further 1.25% in the latter.
“Kiliwani North is an important project for us as it represents our first revenue from Tanzania, however, Solo has elected to focus its immediate investment on the larger potential at Ntorya, where appraisal drilling of will shortly be underway," said Neil Ritson, Solo Oil chairman.
He added: "We are very pleased with the progress being made at Kiliwani North now that the Songo Songo Island gas processing plant has been fully commissioned and we expect to see further production and gas sales news in the next few weeks.”
Aminex chief executive Jay Bhattacherjee, separately, said: “The recently completed capital raise has afforded the company the ability to maintain its current interest.
“The Kiliwani North-1 well is performing well and maintaining a higher interest in the licence allows us to retain more of the revenues generated from the project and strengthen our balance sheet.
“The company remains focused on the upcoming multi well appraisal and development drilling programme in the Ruvuma Basin, for which it is fully funded."