Solo Oil plc announced Thursday that it has been informed by Aminex PLC, operator of the Kiliwani North Field, that payment has now been received for its first invoice in relation to gas produced from the Kiliwani North-1 well in Tanzania during April and May.
Payment was made in US dollars and in accordance with the Company's Gas Sales Agreement with the Tanzania Petroleum Development Corporation. Solo is currently working with TPDC during the current testing period to achieve an optimal rate and during this phase is being paid for all gas produced.
"Solo is delighted that the first payment for gas from the Kiliwani North field has been made with minimal delay,” said Neil Ritson, Solo's chairman.
“Whilst the first payment is quite small, reflecting initial commissioning rates, we are pleased that an income stream has now commenced. Future payments will be larger and create an underlying cash flow from operations that will support Solo's ongoing investments. At a production rate of 25 million cubic feet per day and Solo's current interest these payments equate to approximately $150,000 per month."
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