Solo Oil makes further investment in Kiliwani North
Solo Oil said that, further to the various agreements with Aminex, it has agreed to increase its interest in the Kiliwani North Development Licence (KNDL) to 10% for USD2.16m. It previously held a 6.175% interest.
The Gas Sales Agreement (“GSA”) with the Tanzanian Petroleum development Corporation (“TDPC”) was signed in early January and commissioning of the Kiliwani North-1 well (“KN-1”) has been underway over the last few weeks with gas production expected to commence shortly.
KN-1 gas will initially be used to commission the new Songo Songo gas treatment plant before being transported by pipeline to Dar es Salaam where it will be sold into the local Tanzanian market at an agreed price of approximately US$3.07 per mscf.
Aminex obtained approvals, including those from the Tanzanian authorities, for a disposal of up to 13% in KNDL to Solo in early 2015. No further approvals are expected in relation to this transaction.
In 2015 LR Senergy ascribed gross 28 billion cubic feet best estimate contingent resources to Kiliwani North-1, which was contingent on completion of the GSA, which has now occurred. It is therefore Solo’s expectation that reserves at Kiliwani North will be booked later this year.
Source: Solo Oil Plc
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