Solo Oil Plc (LON:SOLO) managing director Dan Maling told investors he is confident that the Tanzania-focused explorer will be fully funded for 2019’s planned activities.
It comes as partner Aminex updated on the progress at the Ruvuma and Kiliwani North projects.
Aminex has finalised the anticipated programme for the planned Chikumbi-1 at the Ruvuma project and it has selected the contractors for the work. It has entered into a rig sharing agreement with Heritage Oil, for each company to reduce mobilization and demobilization costs.
It has also put together plans for a 3D seismic programme which will cover some 220 square kilometres over the Ntorya development area.
Chikumbi-1 will be located about 4 kilometres from the successful Ntorya-2 well, drilled in 2017, and, it will be drilled down to a depth of 3,485 metres.
If it proves successful, it is expected to be completed as a future producer, in the Ntorya development. The well has two objectives – to expand and delineate the Ntorya project, and, to test a deeper, Late Jurassic exploration target.
Solo owns a 25% beneficial interest in the Ruvuma PSA.
Aminex also updated on the Kiliwani North asset, where a recent remedial programme on the project’s producing well provided the opportunity for further analysis. Sclumberger fully opened the well.
The company believes there is a fluid column in the well and it is analysing the operational and testing data.
It added that it has identified areas for a proposed 3D seismic programme, which would aim to identify low-cost drilling prospects, which may be monetised by being tied into the existing facilities.
Solo holds 8.3918% of Kiliwani North.
Confident of funds
"We have been working closely with Aminex on reviewing the forward operational programmes at both Ruvuma and Kiliwani,” Maling said in a statement.
“There are now detailed cost estimates with operational plans in place.
“While the work programme commitments remain contingent on governmental approvals at Ruvuma, with our recent monetisation efforts we are in a strong cash position with a liquid balance sheet and are confident of being fully funded for next year's planned well programme and G&A."
Solo chairman Alastair Ferguson, meanwhile, added: “We are pleased to see Aminex's issuance of their circular and are supportive of their planned farmout of the Ruvuma PSA to The Zubair Corporation LLC.
“We regard this deal and the quality of the farminee as a significant external validation of the project and look forward to working with the new operator alongside Aminex to drive the development of the Ruvuma gas project forward.
“We look forward to further updates from Aminex as we continue to actively participate in the joint venture management and planning processes."