logo-loader
EnergyOil & Gas
viewSolo Oil PLC

Solo Oil confident it is fully funded for Tanzania plans

Chikumbi-1 will be located about 4 kilometres from the successful Ntorya-2 well, which was drilled in 2017

oil and gas operations
Solo has been prioritising its Tanzania assets

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.

READ: Solo Oil exits Isle of Wight project with sale to UKOG

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.

Kiliwani North

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."

Quick facts: Solo Oil PLC

Price: 2.425 GBX

AIM:SOLO
Market: AIM
Market Cap: £15.32 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Solo Oil PLC named herein, including the promotion by the Company of Solo Oil PLC in any Content on the Site, the Company receives from said...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Solo Oil's Neil Ritson on Horse Hill, Ruvuma and plans to refresh the team

Neil Ritson, chairman of Solo Oil PLC (LON:SOLO), discusses with Proactive's Andrew Scott the first batch of production testing results from Horse Hill,  the decision by their partner at Ntorya, Aminex plc (LON:AEX) to farm-out two-thirds of its 75% interest in the project and the...

on 19/7/18

3 min read