{"id":4343,"date":"2016-02-11T20:02:23","date_gmt":"2016-02-11T20:02:23","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=4343"},"modified":"2017-01-26T09:17:13","modified_gmt":"2017-01-26T09:17:13","slug":"solo-oil-invests-additional-equity-in-kiliwani-north-tanzania","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/solo-oil-invests-additional-equity-in-kiliwani-north-tanzania\/","title":{"rendered":"Solo Oil Invests Additional Equity in Kiliwani North, Tanzania"},"content":{"rendered":"

Solo Oil has announced that it has acquired a further interest in the Kiliwani North Development Licence from concession operator Aminex to reach 10% from the current 6.175% interest in the KNDL where the Kiliwani North-1 well is located and will pay Aminex US$2.16 million.<\/p>\n

The increase in ownership follows the signing of the Gas Sales Agreement (GSA) with the Tanzanian Petroleum development Corporation (TDPC) which was signed in early January and commissioning of the Kiliwani North-1 well.<\/p>\n

Kiliwani North-1 well (KN-1) has been underway over the last few weeks with gas production expected to commence shortly.\u00a0 KN-1 gas will initially be used to commission the new Songo Songo gas treatment plant before being transported by pipeline to Dar es Salaam where it will be sold into the local Tanzanian market at an agreed price of approximately US$3.07 per mscf.<\/p>\n

According to Solo Oil chairman Neil Ritson the decision to invest in Kiliwani North was to further in order to balance various opportunities.<\/p>\n

“In order to balance various opportunities to deploy cash in the Solo business we have elected to increase<\/a> our interest in Kiliwani North by just under 4 percent, slightly less than the maximum of 6 percent available to us under the option agreement signed last year.\u00a0 Solo will receive 10% of the KNDL revenue once the purchase is completed.\u00a0 Gas production at KN-1 is expected to commence shortly, ” says Ritson.<\/p>\n

The key terms of the proposed KNDL acquisition are set out below:<\/strong><\/p>\n

    \n
  1. Solo has agreed to reduce its option to acquire a further 6.175% in the KNDL in the Second Tranche Acquisition as originally announced 14 October 2014 and modified by TPDC Back-in announced on 5 October 2015.<\/li>\n
  2. The Second Tranche Acquisition will now consist of Solo acquiring a further 3.825% of the KNDL from Aminex for a consideration of US$2,168,000.<\/li>\n
  3. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The parties have agreed to enter into a formal sale and purchase agreement (“SPA”) within 30 days.<\/li>\n
  4. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Solo will pay US$500,000 on signature of the SPA and the balance on or before 30 April 2016, unless otherwise agreed between the parties.<\/li>\n<\/ol>\n

    Current participants in the Kiliwani North Development Licence, following TPDC back in, are: Ndovu Resources Ltd (Aminex) 55.575% (operator), RAK Gas LLC 23.75%, Solo Oil plc 6.175%, Bounty Oil & Gas NL 9.05% and TPDC 5%.\u00a0 On completion of the SPA Aminex will hold 51.75% and Solo will hold 10%.<\/p>\n

    Aminex obtained approvals, including those from the Tanzanian authorities, for a disposal of up to 13% in KNDL to Solo in early 2015.\u00a0 No further approvals are expected in relation to this transaction.<\/p>\n

    In 2015 LR Senergy ascribed gross 28 billion cubic feet best estimate contingent resources to Kiliwani North-1, which was contingent on completion of the GSA, which has now occurred.\u00a0 It is therefore Solo’s expectation that reserves at Kiliwani North will be booked later this year.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Solo Oil has announced that it has acquired a further interest in the Kiliwani North Development Licence from concession operator Aminex to reach 10% from the current 6.175% interest in … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":1819,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[137,3675,1321,2856,1709,3674,2343,2481,2543],"class_list":["post-4343","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-aminex","tag-bounty-oil-gas-nl","tag-kiliwani-north","tag-kiliwani-north-1-well","tag-ndovu-resources-ltd","tag-rak-gas-llc","tag-solo-oil-plc","tag-tanzanian-petroleum-development-corporation","tag-tpdc","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/09\/solo-oil.jpg?fit=320%2C320&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-183","jetpack-related-posts":[{"id":2577,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzania-draws-closer-gas-production-kiliwani-north-1-well\/","url_meta":{"origin":4343,"position":0},"title":"Tanzania draws closer to gas production from the Kiliwani North 1 well","author":"","date":"February 19, 2015","format":false,"excerpt":"Aminex has notified shareholders that the Tanzanian Petroleum Development Corporation (TPDC), through its contractors, has now begun constructing the Skid Metering Unit within the boundaries of the Kiliwani North Development Licence (KNDL) and have completed laying pipe to the KNDL boundary. Once construction is complete the Kiliwani North 1 well\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/kiliwani-north.jpg?fit=498%2C565&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4496,"url":"https:\/\/www.oilnewskenya.com\/index.php\/commissioning-of-tanzanias-songo-songo-island-gas-set-for-april-2016\/","url_meta":{"origin":4343,"position":1},"title":"Commissioning of Tanzania\u2019s Songo Songo Island gas plant Set for April 2016","author":"","date":"March 15, 2016","format":false,"excerpt":"The Tanzania Petroleum Development Corporation (TPDC) has provided a revised work schedule in the \u00a0Kiliwani North license and informed the operator Aminex that the commissioning of the Songo Songo Island gas plant is expected to commence in early April. Aminex which concluded the final well integrity testing of the Kiliwani\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/11\/kiliwani-north-1-well.png?fit=493%2C556&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4551,"url":"https:\/\/www.oilnewskenya.com\/index.php\/gas-production-commences-at-tanzanias-kiliwani-north-gas-field\/","url_meta":{"origin":4343,"position":2},"title":"Gas Production Commences at Tanzania’s Kiliwani North Gas Field","author":"","date":"April 6, 2016","format":false,"excerpt":"Operator at the the Kiliwani North Development Licence\u00a0 Aminex has announced gas production from its\u00a0Kiliwani North gas field\u2019s Kiliwani North-1 well ('KN-1') \u00a0in Tanzania has commenced on schedule as had earlier been announced. According to Aminex production is expected to build up to an anticipated production rate of 25-30 mmcfd\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/kiliwani-north.jpg?fit=498%2C565&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3271,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzanias-kiliwani-north-gas-agreement-signed-q3-2015\/","url_meta":{"origin":4343,"position":3},"title":"Tanzania\u2019s Kiliwani North Gas Agreement to be Signed in Q3 2015","author":"","date":"August 26, 2015","format":false,"excerpt":"Production from the Kiliwani North Field could start in 2015 with the Tanzanian authorities having advised that production should start within Q3 2015 now that the main pipeline has been pressure tested and with the Gas Agreement expected to be signed this quarter. The completion of a Gas Sales Agreement\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/10\/kiliwani-north.jpg?fit=498%2C565&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":6492,"url":"https:\/\/www.oilnewskenya.com\/index.php\/aminex-seeks-remedies-kiliwani-north-1-well-pressure-dips\/","url_meta":{"origin":4343,"position":4},"title":"Aminex Seeks Remedies as Kiliwani North-1 well Pressure Dips","author":"","date":"November 6, 2017","format":false,"excerpt":"Aminex\u00a0reports that production from the\u00a0Kiliwani North-1\u00a0well (KN-1) is currently fluctuating below 1 million standard cubic feet per day due to low reservoir pressure and inlet pressure restrictions of the gas processing plant. 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