Solo Oil updates on Ntorya appraisal well, Tanzania

Solo Oil said site preparations for the Ntorya-2 appraisal well have now been completed and that mobilisation of the Caroil#2 rig from the Ntorya-1 wellsite is underway.

The Ntorya-2 pad is located approximately 1.5 kilometres to the southwest of the Ntorya-1 well.

The rig and associated equipment are being transported to the new site, will be rigged up and tested, and will then undergo any maintenance required before being taken on under the contract reported on 23 September 2016.

The majority of other well services have also now been contracted. Solo therefore estimates that the Ntorya-2 appraisal well is likely to spud in December 2016.

Solo holds a 25% interest in the Ruvuma Petroleum Sharing Agreement ("Ruvuma PSA") which contains the Ntorya gas condensate discovery made in 2012 with the Ntorya-1 well which was tested at a rate of 20.1 million feet per day of gas ("mmscfd") and 139 barrels per day of condensate from a 3.5 metre interval at the top of a 20 metre Cretaceous sandstone pay zone at a depth of approximately 2,600 feet.

The Ntorya-1 well has been credited in an independent report by Senergy (GB) Limited with gross 153 billion cubic feet ("bcf") of gas in place, of which 70 bcf are considered gross best estimate contingent resources.

A further gross best estimate of undiscovered gas in place of over 1 trillion cubic feet is attributed to the Ntorya Prospect as a whole and is the target of the Ntorya-2 well which is being drilled updip and in a thicker part of the sand body interpreted on the 2014 seismic data acquired to facilitate appraisal.

The Ntorya discovery lies just 20 kilometres from the 36-inch Mtwara to Dar es Salaam gas pipeline which was commissioned in late 2015 and is transporting produced gas from various fields, including the Kiliwani North Field where Solo holds a 7.125% interest, to gas markets in the north of Tanzania.