Solo Oil PLC Significant Resource Upgrade at Ntorya, Tanzania

Solo Oil PLC (LON:SOLO) has today announced the results of the recently completed Competent Persons Report (“CPR”) conducted independently by RPS Energy Consultants Limited (“RPS”) which results in a significant resource upgrade of the Ntorya gas discovery in the Ruvuma Petroleum Sharing Agreement (“Ruvuma PSA”) where Solo holds a 25% working interest.  Aminex plc (“Aminex”), the operator of the Ruvuma PSA, has also confirmed that, when taken together with the Ntorya Gas Commercialisation Study prepared by io oil & gas consulting (“io consulting”) last year, these resources indicate the commercial feasibility of a proposed development at Ntorya.  RPS, a subsidiary of RPS Group, is an internationally-recognised resource reporting firm and io oil & gas consulting is a joint venture between Baker Hughes, a GE company, and McDermott.

 

Highlights

·     Ntorya 2C contingent resource estimate increased to gross 763 billion cubic feet (“bcf”), an increase of over 10-fold from the 2015 CPR;

·     Ntorya Pmean gross gas initially in place (“GIIP”) upgraded to 1.87 trillion cubic feet (“tcf”), which is an increase of 44% on previous management estimate of 1.34 tcf and an increase of approximately 12-fold from the previous CPR (pre-drilling of Ntorya-2) in 2015;

·     io consulting has confirmed that the Ntorya gas development project could be sanctioned with three wells producing into a raw-gas pipeline to the Madimba gas plant approximately 33 kilometres away. 

Based on this independent report undertaken by an industry leading consultancy, Solo now holds net resources of approximately 467 bcf Pmean GIIP, resulting in excess of 190 bcf (over 30 million barrels oil equivalent (“mmboe”)) of most likely contingent resources net to its 25% interest.

 

Neil Ritson, Solo’s Executive Chairman, commented:

“A further significant and material resource upgrade made independently by RPS supports the Company’s view that Ntorya is a major gas field within the regional market, thereby underpinning our development plans.  The independent verification of our net interest equivalent to over 30 mmboe underlines the significant value of Ntorya within our portfolio.  When taken with the results of the io consulting commercial feasibility study, we are now confident that Ntorya can be economically produced with limited further major capital expenditure.   This gives us line of sight to additional revenues and strengthens our ability to monetise our interest at the appropriate time.  We now look forward to the confirmation that a rig has been secured for the drilling of appraisal well Ntorya-3, and to continued progress on the award of a 25-year development licence for the field.”

 

Ntorya Development

At Ntorya in the Ruvuma PSA, where the Company has participated in the drilling of two successful wells, Ntorya-1 and Ntroya-2, the gross 2C contingent resource estimate has been increased by RPS to 763 bcf, which is an increase of nearly 11 times over the previous 2015 CPR.  Pmean GIIP has also been upgraded for the third time since the drilling of the Ntorya-2 well to gross 1.87 tcf, up from the operator’s initial post-drilling estimate of gross 466 bcf and then gross 1.34 tcf in September 2017 which was based on a fully updated post-drilling basin model.

Encouragingly, io consulting’s work has also confirmed that the Ntorya gas development could be sanctioned with three wells; Ntorya-1, Ntorya-2 and, the yet to be drilled Ntorya-3 well, and that an early production scheme (“EPS”) would limit upfront capital expenditure and enable the main field development to be funded from future cash-flow.

Kiliwani North Development Area

At Kiliwani North, where Solo holds a 7.55% working interest and where approximately gross 6.4 bcf has been produced to date, RPS estimates gross 1.94 bcf of 2P reserves remain with a gross Pmean GIIP of 30.8 bcf.  It is planned to install compression at Kiliwani North-1 in order to increase recovery of the resources.  In addition, a new prospect has been identified within the Kiliwani North Development Licence (“KNDL”) at Kiliwani South with an additional estimated gross 57 bcf prospective Pmean GIIP.  As the KNDL was originally granted for 25 years (expiring in 2036), the operator is now conducting further technical work to assess the feasibility of further drilling which could lead to additional production into the Songo Songo Island gas processing plant.

 

Qualified Person’s Statement:  

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chairman and Director for Solo Oil plc, who has over 40 years of relevant experience in the oil industry.  Mr. Ritson is a member of the Society of Petroleum Engineers (SPE), an Active Member of the American Association of Petroleum Geologists (AAPG) and is a Fellow of the Geological Society of London (BGS).

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Facebook
    Twitter
    LinkedIn
    Solo Oil Plc

    More articles like this

    Solo Oil Plc

    Oil prices gain on fall in U.S. crude stockpiles

    Oil prices rose on Thursday as a sharp drop in oil stockpiles outweighed concerns that a spike in U.S. coronavirus infections and revived lockdown measures in California could stall a recovery in fuel demand. Brent crude

    Solo Oil Plc

    Solo Oil enters into US$5,000,000 investment facility

    Solo Oil plc (LON:SOLO), the AIM investing company targeting attractive production and development opportunities within the European gas market, has announced the entry into a share subscription deed with Prolific Basins LLC, a U.S.-based specialist energy

    Solo Oil Plc

    Crude oil prices inch up

    Oil prices inched up on Friday as the bullish impetus from signs of fuel demand recovery was kept in check by a rising number of new coronavirus cases in the United States and China and tentative

    Solo Oil Plc

    Oil jumps more than 1%

    Oil rose more than 1% on Monday on tighter supplies from major producers and as coronavirus lockdowns continued to ease, but gains were capped by worries that a worldwide rise in new infections might stall a

    Solo Oil Plc

    Re-balancing the oil market

    The oil market reacted positively to the IEA report yesterday, with Brent trading back above US$40/bbl. The agency reported that OECD inventories at the end of April stood at a little over 3.1b bbls, whilst preliminary

    Solo Oil Plc

    The Helium Market is Heating Up

    It’s not all hot-air balloons and funny voices. Investors are starting to get excited about Helium stocks, and for good reason. The well-known and little-produced gas is important for a variety of industries. The most commonly

    Solo Oil Plc

    Oil prices rise ahead of OPEC+ meeting

    Oil prices rose on Tuesday, with traders waiting to see whether major producers agree to extend their huge output cuts to shore up prices at a virtual meeting expected later this week. Brent crude futures rose 0.91%,

    Solo Oil Plc

    Oil Rallies with investors eyeing demand recovery

    Oil rallied as investors looked past an increase in U.S. crude stockpiles to focus on tentative signs of a recovery in fuel demand as well as output cuts. Futures in New York rose 2.7% Thursday. While

    Solo Oil Plc

    Oil prices increase amid signs of improving demand

    Oil prices have increased amid signs of improvement in fuel demand and a fall in the US crude stocks. But lingering concerns over the economic disruption from the Covid-19 outbreak, especially in the US, capped gains.

    Solo Oil Plc

    Oil settles higher

    Oil futures finished higher Tuesday, with U.S. prices at a five-week high on expectations that falling production levels and a gradual revival in demand from a COVID-19 pandemic-related drop, will ease a global glut of crude

    Solo Oil Plc

    Oil prices surge over 10%

    Oil prices jumped on Thursday, extending steep gains in the previous session on signs the U.S. crude glut is not growing as quickly as expected and that gasoline demand battered by COVID-19 restrictions is starting to

    Solo Oil Plc

    Oil prices begin recovery

    Oil prices rose nearly 20 percent Wednesday, a sign of a stabilizing market after trading went into negative pricing for the first time in history at the start of the week. West Texas Intermediate settled at

    Solo Oil Plc

    Solo Oil at a glance

    Introducing Solo Oil Oil and gas Investment company Listed on the London AiM Market (SOLO) Objectives To acquire and develop a diverse global portfolio of oil & gas assets Portfolio Non-operated oil & gas assets: Major

    Solo Oil Plc

    Oil prices jump on hopes for OPEC

    Oil bounced back on Wednesday, with U.S. crude jumping over $1, lifted by hopes that a meeting between OPEC members and allied producers on Thursday will trigger output cuts to shore up prices that have crumbled