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Solo Oil says it will ‘vigorously pursue’ Tanzanian gas development

Published: 17:25 29 Sep 2014 BST

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Solo Oil (LON:SOLO) told investors it will ‘vigorously pursue’ the development of its Tanzanian asset.

In its interim results statement, released Monday afternoon, Solo said the 25% stake in the Ruvuma PSA represents a very significant asset for the company.

“We look to realise the full potential of our investment in Ruvuma over the next few years as the discoveries made are commercialised,” it said.

Operationally the programme will include seismic and drilling next year.

In recent weeks two separate gas resource upgrades increased the estimated potential size of the Ntorya area, one part of the PSA, to 2.3tcf (from the prior estimate of 1.2tcf).

It comes as a new pipeline is being completed to connect gas resources in southern Tanzania to the country’s capital Dar es Salaam.

In terms of its financials the pre-revenue oil junior reported a £407,000 loss for the six months to June 30, and it revealed it had £936,000 at the end of the period.

Solo has diversified its prospects by participating in the high profile Horse Hill exploration project onshore UK, about 3 kilometres away from Gatwick airport.

A separate announcement earlier today revealed that the exploration well is now approaching the first of its main targets.

Solo Oil (LON:SOLO) and the well’s other AIM quoted stakeholders have told investors that drilling has now reached a depth of 1,795 feet and the second casing point is now being set.

It was also reported that due to the observation of geological markers this second casing point is higher in the well than originally anticipated - it was revised from 1,865 feet.

The bottom of the well is presently in the upper part of the Jurassic and, according to the operator’s reports, anticipated mud gas and fluorescence have now been encountered.

Horse Hill’s primary reservoir target is the Jurassic Portland, which has been anticipated at a depth of around 2,000 feet.

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