Solo Oil has signed an asset purchase agreement with Aminex for a 6.5 per cent interest in Tanzania’s Kiliwani North Development Licence (KNDL) worth US$3.5mn
Solo Oil and Aminex have also agreed to amend the terms of the original heads of agreement to allow the former the option to purchase the additional 6.5 per cent interest, on the same terms during a period of 30 days after the gas sales agreement (GSA) has been approved by the authorities concerned.
The KNDL holds Kiliwani North 1 (KN1) well, which is expected to produce 566,337 cu/m per day of gas in early 2015. Solo Oil said that once under production, this would represent a major milestone, providing first revenues from Tanzania.
Independently verified resources at Kiliwani North are estimated to be 1.2bn cu/m of gas-in-place. The construction of a two-km pipeline from KN1 wellhead to the new Songo Songo processing plant was underway and was expected to be completed shortly. The pressure testing of the pipeline is expected to commence during Q1 2015.
Aminex and Solo Oil are already partners in the Ruvuma production sharing contract (PSC) in Tanzania, with respectively 75 per cent and 25 per cent interests, where gas was discovered in 2012 at Ntorya-1. Ndovu is the operator of both the Ruvuma PSC and the KNDL.
READ MORE…
