Solo Oil plc has raised $1.12 million through the issue of 320,000,000 new ordinary shares in the company, which will be used to help the firm fund a 10 percent acquisition of the Kiliwani North Field in Tanzania.
The additional funding will be utilized as part of a payment that will take Solo's working interest in the Kiliwani North Development License to 8.425 percent. The final payment of the intended acquisition at Kiliwani North, taking the company's ownership to 10 percent, will be completed when the asset’s commissioning phase ends and gas production is managed under the long-term take-or-pay provisions of the gas sales agreement with the Tanzanian Petroleum Development Corporation.
Solo Oil Chairman Neil Ritson commented in a company statement:
"With the Kiliwani North-1 well now flowing gas into the Songo Songo gas processing plant this is an ideal time for Solo to accelerate its ownership of the project and participate in the growth of revenues from gas sales. This is a very exciting time for the company as we reach first material production and revenue."
Net revenue from the Kiliwani North Development License, which commenced gas production earlier this week, is expected to ramp up to between $2 and 2.5 million per annum to Solo's interests.
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