Solo Oil Opts Out of Immediate Option to Extend KNDL Equity

Solo Oil has informed Aminex plc, the operator of the Tanzanian Kiliwani North Development Licence (KNDL), that it does not intend to exercise its immediate option over a further 1.25 percent interest in the KNDL.

The option is now available to Solo having received first revenue from gas sales in mid-August. Solo continues to hold a further option over an additional 1.575 percent in the producing Kiliwani North field as announced April 4, and the company revealed that it will determine its investment in that tranche in due course.  

Solo currently holds a 7.175 percent interest in the KNDL which contains the producing Kiliwani North-1 well.  If the company elects to take the final option its total interest in the KNDL will rise to 8.75 percent. 

"We are very pleased with the progress being made at Kiliwani North now that the Songo Songo Island gas processing plant has been fully commissioned and we expect to see further production and gas sales news in the next few weeks,” said Solo Chairman Neil Ritson.

“Kiliwani North is an important project for us as it represents our first revenue from Tanzania, however, Solo has elected to focus its immediate investment on the larger potential at Ntorya, where appraisal drilling of will shortly be underway."

Solo holds a 25 percent interest in the Ruvuma Production Sharing Contract area in Tanzania which contains the Ntorya-1 gas condensate discovery well.