Tanzania Petroleum Development Corporation to Buy Into Kiliwani North Licence

Solo Oil on Monday said Tanzania Petroleum Development Corporation (TPDC) intends to exercise its right to back into the Kiliwani North development licence .

The TPDC will take a 5 percent working interest as a fully-paying partner and will 5 percent pro-rata share of the development capital spent to date

Once the back-in is concluded Solo's interest in the licence will be 6.175 percent (current interest 6.5 percent).   

"Solo is delighted that TPDC have chosen to exercise their back-in rights which will further increase their alignment with the partnership developing Kiliwani North.  We continue to anticipate reaching final agreement on the gas sales agreement shortly and gas sales revenues commencing soon after," Neil Ritson, Solo's Chairman, commented.

The Kiliwani North development licence contains the Kiliwani North 1 (KN-1) well, which the Solo expects to produce at up to approximately 30 million feet per day of gas (gross).  Once producing this will represent a major milestone for Solo, providing the company's first revenues from its investments in Tanzania. 

A gas sales agreement, with appropriate payment guarantee provisions, is pending signature and once signed will allow gas to flow from the KNDL to the newly constructed Songo Songo Island gas processing facilities and into the national pipeline to customers in Dar es Salaam. 

Participants in the Kiliwani North Development Licence are currently: Ndovu Resources Ltd (Aminex) 58.5 percent (operator), RAK Gas LLC 25 percent, Solo Oil plc 6.5 percent and Bounty Oil & Gas NL 10 percent.