Solo Concludes Kiliwani North Acquisition
Solo Oil has concluded a deal with Aminex plc to acquire a further 3.825 percent interest in Tanzania’s Kiliwani North Development License for a total cash consideration of $2.16 million.
As part of the agreement, Solo's interest will increase through three payment tranches to Aminex, linked to project milestones, for the total agreed cash consideration. An initial investment of $566,802 for an additional one percent interest was made upon the signature of the Sale and Purchase Agreement, increasing Solo's total interest from 6.175 percent to 7.175 percent.
A second investment of $708,502 for a further 1.25 percent interest will be made within 15 days of the first US dollar payment being received for gas from Kiliwani North-1. Solo's total interest will increase to 8.425 following this transaction and a third payment of $892,712 will be made for the final 1.575 percent interest within 15 days of the commercial operations date being declared, taking Solo's total and final interest to 10 percent.
If any payment is missed then that payment option, and only that option, will be automatically cancelled. Payment of the second and third investments will require further funding from cash flow or otherwise to be arranged by Solo.
The KN-1 well, which is ready to begin production, has been ascribed gross contingent resources (2C) of gross 28 billion cubic feet by LR Senergy and Solo expects to book reserves from the well by year-end.
Solo Oil Chairman Neil Ritson commented in a company statement:
"Solo is delighted to increase its exposure to the KNDL project with commencement of production imminent. The project offers a revenue stream that will increase through the commissioning process and into commercial production under the GSA which has take-or-pay provisions and is paid in US dollars guaranteed by a consortium of banks. By linking the acquisition of our additional interest to project milestones we have been able to further de-risk the investment."
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- FID For $13.2B Louisiana LNG Project
- African LNG Projects To Look Out For
- UK Slaps 25 Percent Windfall Tax on Oil and Gas Profits
- Equinor Submits Plan For Halten East Subsea Developments
- Most UKCS Operators Paying Invoices Promptly
- Bankrupt Sri Lanka Still Seeking More Oil and Fuel Imports
- EU Plan To Escape Russian Fossil Fuels May Fall Short Of Objectives
- Shell Completes Sale of Russian Assets to Lukoil
- Markets Remain Tight Nearly 3 Months into Ukraine War
- EU Forms Task Force To Support Departure From Russian Fossil Fuels
- ADNOC Announces 650MM Barrel Oil Find
- Finland Loses Main Gas Supply
- Oil Inventories Down to Dangerously Low Point
- USA Fuelmakers Shifting Into Higher Gear
- Brent-WTI Oil Price Spread Inverts
- ExxonMobil Selling Shale Assets for $750MM
- Shots Fired During Tanker Loading
- 6 Power Generating Facilities in Texas Just Tripped
- NPD Grants Slew of Drilling Permits
- BlackRock Told Texas It Will Still Invest In Oil And Gas
- Russian Oil Producers Start Using Tankers the World Did Not Want
- ADNOC Announces 650MM Barrel Oil Find
- Finland Loses Main Gas Supply
- This Is Where the Oil Price Would Be Without the War
- Ban on Excessive Gasoline Prices Heading for Vote
- Oil and Gas Discovery Confirmed at Hamlet
- Top Headlines: Be Prepared to Pay More at the Pump from June
- Oil Inventories Down to Dangerously Low Point
- Gas Prices Could Rocket in the Near Term
- Exxon Does It Again - Three More Discoveries Offshore Guyana