Solo Oil Could Soon Close Tanzania Gas Field Stake Purchase Deal

Solo Oil and Aminex expect to shorty receive formal approval from Tanzanian authorities to close the Kiliwani North Development Licence deal.

Last month, Solo Oil announced it signed an agreement to acquire an initial 6.5% interest in Kiliwani North Development License in Tanzania from Ndovu Resources, a wholly-owned subsidiary of Aminex, for $3.5 million. 

The UK based company also has an option to increase its interest in the license by a further 6.5 percent to 13 percent.

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. 

“This agreement, which we now expect to close shortly, will be a major landmark for Solo as it will lead to the company's first gas production and revenue from Tanzania.  We have recently reviewed the draft gas sales agreement and are confident that it can be signed shortly and supports our belief in the commerciality of gas from our various interests in Tanzania,” Neil Ritson, Solo's Chairman, commented.  

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

Additionally, Aminex has said that construction work for the two kilometre long tie in pipeline from the new Songo Songo gas processing plant to the Kiliwani North 1 well has now commenced and is expected to be completed by year end and that the Songo Songo processing plant and pipeline remain on schedule and there are no anticipated delays to the commencement of production which is expected early next year.