LONDON (ShareCast) - (ShareCast News) - Oil and gas investor Solo Oil announced on Monday that it intends to test a second target at its Ruvuma Petroleum Sharing Contract (Ruvuma PSC) project in Tanzania with the construction of a new well.
The planned Chikumbi-1 well will be developed by site operator Aminex plc and will target the same reservoir as the Ntorya-1 and Ntorya-2 wells, as well testing a deeper target at a depth of approximately 3,400 metres.

Neil Ritson, chairman of Solo Oil, said: "We are pleased that plans to drill at Ntorya continue to advance and that a second target below the Ntorya discovery can additionally be tested with the planned well. Solo continues to make its own plans, in parallel with Aminex, to fund the eventual development of Ntorya, which we anticipate will follow the Chikumbi-1 well."

The tendering process for the rig required for the new well is due to close in the current quarter, with the spudding of the well expected later in the year dependent on rig availability.

Solo holds a 25% interest in the Ruvuma PSC and is currently engaged in discussions to progress an outstanding Ntorya development licence.

"The receipt of a 25-year development licence for the Ntorya discovery remains a key step in our plans to monetise the discovery and we look forward to further news on that in due course," said Ritson.

Furthermore, the AIM-traded company reported that the National Environment Management Council of Tanzania has approved its application for further 2D and 3D seismic data over the Ruvuma acreage, focusing on the Ntorya discovery zone.

As of 1229 BST, Solo Oil's shares were down 2.94% at 3.30p.

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