Solo Oil (SOLO) has been working closely with Aminex, its partner and operator at Rumuva, which is making significant progress towards meeting the conditions for operations at the project in Tanzania to close out the farm out agreement signed with Zubair Group in early July.
It has selected contractors to drill the Chikumbi-1 well, located approximately 4 km west of the successful 2017 Ntorya-2 well, and has identified and designed a 220 sq km 3d programme over the Ntorya development area.
Alastair Ferguson, Solo's Chairman, said: “We regard this deal and the quality of the farminee as a significant external validation of the project”.
In order to reduce mobilisation and demobilisation costs, a rig sharing agreement was signed with Heritage Oil. Included in the agreement was that the Chikumbi-1 will be drilled to 3,485m in depth; to delineate the Ntoya Gas Field, and to test a deeper Late Jurassic Exploration target.
This update comes as interest in Tanzania’s energy sector attracts significant investment in oil and gas projects. Last week a $30 million investment was made into Swala Oil & Gas by Dr. Reginald Mengi, the internationally recognised Tanzanian entrepreneur and philanthropist who built and owns IPP Group, one of the largest conglomerates in Tanzania.
Swala CEO noted: “Dr. Mengi has identified the Tanzania energy sector as a strategically important sector with significant opportunity for Tanzanians” Growing investment in the industry bodes well for oil and gas companies with projects in the country.
Aminex also updated progress at the Kiliwani North and Nyuni area, where it engaged Sclumberger to remediate and fully open its Kiliwani North-1 well. The company believes there is a fluid column in the well and is analysing the operational and testing data.
The company also identified areas to conduct a 3D seismic to progress low-cost drilling prospects which may be tied into the existing facilities and monetised.
Solo Oil Managing Director Dan Maling said that the company is confident it is fully funded for 2019’s planned operations in Tanzania, mentioning: “There are now detailed cost estimates with operational plans in place.”
Solo Oil has a 25% interest in the Rumuva production sharing agreement, containing the Ntoyra gas field, which, according to independent estimates, has a total combined gross 2C Resources of 763 BCF, and the Chikumbi prospect, with 936 BCF of 2U Resources. It also has a 8.39% interest in Kiliwani North which has been mapped and attributed a mean GIIP of 30.8 BCF by Aminex.
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