Solo Oil Says Tanzania Gas Pipeline Progressing Well

Construction of the Chinese financed gas pipeline from Mtwara to Dar es Salaam in Tanzania has progressed well and it is expected that commissioning will be completed in 2014, Solo Oil said in a statement Tuesday. 

The close proximity of the pipeline to the Ntorya discovery and to various undrilled prospects in the Ruvuma PSA greatly enhances the economics for gas production and negotiations on gas sales from the Ntorya Field are expected to commence during 2014, the UK listed company added.

The Ruvuma PSA lies in the south-east of Tanzania and covers approximately 3,447 square kilometres of which some 10% lies offshore and the balance onshore.  In 2010 Solo exercised its option to obtain a direct 12.5% working interest in the Ruvuma PSA following the successful drilling of the Likonde-1 well.  During the drilling of the Ntorya-1 well in 2012 Solo further increased its working interest and now holds a 25% interest. 

Within the Ruvuma PSA there are two separate licence areas known as Lindi in the north and Mtwara in the south.  Mtwara is contiguous with the Mozambique border and both licence areas border the coast where very substantial gas discoveries have been made in recent years.

The Ntorya-1 gas condensate discovery well was drilled in 2011 and 2012.  The discovery has been attributed with gross 178 billion cubic feet (bcf) of gross discovered in-place reserves and a further 1 trillion cubic feet (tcf) of unrisked potential gas in place. 

A resource report was prepared on the Ruvuma PSA by ISIS and published in 2012.  Unrisked gross total resources of 5.75 tcf GIIP were attributable to the Ruvuma PSA and a number prospects and leads of up to 2.6 tcf GIIP were identified, Solo Oil said. 

It is intended that further seismic data will be acquired over the various prospects and that exploration drilling will be undertaken following a farm-out.