Solo Oil, Aminex Get Final Approval for Tanzania Deal

Solo Oil on Wednesday announced that formal approval has been received from the Tanzanian Authorities for the company to acquire up to a 13 percent interest in Kiliwani North Development Licence (KNDL) from Aminex plc. 

The deal was first announced in October last year.

There now remains no further conditions precedent to the previously announced acquisition of a 6.5% interest in the KNDL for $3.5 million and the transaction has been completed, SolO Oil said. 

Solo also retains the right to purchase an additional 6.5% in the KNDL on the same terms up to 30 days after the signing of the Gas Sales Agreement.

"We are pleased that the administrative formalities continue to be progressed effectively; since the physical sale of gas from Kiliwani North into the Songo Songo plant and then into the pipeline to Dar es Salaam gets ever closer,” Neil Ritson, Solo's Chairman, commented. 

The license contains Kiliwani North 1 well which is expected to produce at an approximate rate of 20 million cubic feet per day (mmscfd) in first half 2015. 

Aminex CEO, Jay Bhattacherjee, commented: “The completion of the transaction will allow us to pay down our debt and have a strengthened balance sheet which puts us in a positive position as we move towards first production.”

As previously announced Solo will now become a party to the KNDL Joint Operating Agreement and a named party to the Gas Sales Agreement, which is still expected to be signed shortly.

Solo and Aminex are already partners in the Ruvuma Production Sharing Contract in southern Tanzania, with respectively 25 percent and 75 percent working interests.