Tanzanian oil explorer, Aminex (LON:AEX) says that Solo Oil is to exercies its option to take up a 12.5% interest in the Ruvuma Production Sharing Agreement and in the Joint Operating Agreement between Ndovu and Tullow Oil (operator).
Formerly Immersion Technology International plc, Solo Oil (LON:SOLO) plans to acquire a diverse portfolio of direct and indirect interests in exploration, development and production oil and gas assets which are based in the Americas, Europe or Africa. As announced on the 1st April 2010, the Likonde-1 well, onshore Tanzania, encountered thick sands with hydrocarbon shows. Likonde-1 is located in the Lindi Block in the Ruvuma Basin of Southern Tanzania. The well was drilled to a total depth of 3,647 metres and results of drilling, wireline logs and side-wall coring showed that the well intersected two sandstone intervals of over 250 metres (820 feet) combined thickness with evidence of residual oil and gas. According to the company, drilling had to be terminated in the deepest objectives due to high gas influx. The well, which was plugged and abandoned, is the first of a two-well programme within the prospective Ruvuma delta region.
Under the terms of the farm-out agreement Solo is reimbursing Aminex for 12.5% of pre-drilling costs and paying 18.75% of the drilling cost of Likonde-1 well. After drilling Likonde-1, Solo has earned the right to participate in any further drilling on the licences covered by the Ruvuma PSA through contributing 12.5% of ongoing costs. Solo will become a full party to the Ruvuma joint operating agreement with interests in the PSA held as follows: Tullow (operator) 50%, Ndovu (Aminex) 37.5% and Solo 12.5%.
Solo's Chairman David Lenigas said:
"Solo is excited about exercising its option with Aminex on the Ruvuma Licences. The result from Likonde-1 represents a major step forward in establishing the potential of the Ruvuma Basin. Solo has sufficient funds in treasury to be an active partner in the next phase of work and drilling in Tanzania."
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