Solo Oil Buys Further Stake in Tanzania Licence

Solo Oil has announced its will further increase interest in Kiliwani North Development licence in Tanzania.

The company has agreed to increase its interest to 10 percent from current 6.175 percent. Solo Oil will pay Aminex $2.16 million for the additional stake.

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, Solo said. 

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 approx. $3.07 per mscf.

Aminex obtained approvals, including those from the Tanzanian authorities, for a disposal of up to 13 percent 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.