LONDON (ShareCast) - (ShareCast News) - Solo Oil was counting down to first gas and first revenue at the Kiliwani North Development Licence in Tanzania on Monday, having been advised by the project's operator that production was due to begin in mid-February.
The news from the AIM-traded company followed the signing of a gas sales agreement in January, with an agreed gas price of $3 (£2.10) per million British thermal units, which equals around $3.07 per thousand cubic feet.

Solo said the price was index-liked to the United States consumer price index, and this was not tied to the current volatile global oil price market.

It reported that Aminex had been advised by the Tanzanian Petroleum Development Corporation to prepare the Kiliwani North-1 well for production starting mid-February, with initial production rates managed to allow for testing and commissioning of the recently completed Songo Songo processing plant and related pipelines.

Solo currently held a 6.175% interest in the Kiliwani North Development Licence where the well is located, with an option to acquire a further 6.175% interest in the licence.

"Solo is delighted that the momentum of the Kiliwani North Project is being maintained after the signing of the gas sales agreement, and we anticipate being able to report first gas and receipt of first revenue in the coming months", said Solo chairman Neil Ritson.

Participants in the development licence are Ndovu Resources, which owns operator Aminex, RAK Gas, Solo Oil, Bounty Oil & Gas and TPDC.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE