{"id":4539,"date":"2016-04-04T08:03:10","date_gmt":"2016-04-04T08:03:10","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=4539"},"modified":"2017-01-25T10:39:26","modified_gmt":"2017-01-25T10:39:26","slug":"solo-oil-signs-spa-to-increase-interest-at-kiliwani-north-license","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/solo-oil-signs-spa-to-increase-interest-at-kiliwani-north-license\/","title":{"rendered":"Solo Oil Signs SPA to Increase Interest at Kiliwani North License"},"content":{"rendered":"<p>Solo Oil has announced that further to the agreements previously announced with Aminex plc to acquire a further interest in the Kiliwani North Development Licence (KNDL) the company has now\u00a0executed a Sale and Purchase Agreement (SPA) for the acquisition of a 3.825% interest for a total cash consideration of\u00a0US$2.16 million.<\/p>\n<p>Under the terms of the SPA Solo&#8217;s interest will increase through three payment tranches to Aminex, linked to project milestone, for the total agreed cash consideration:<\/p>\n<ul>\n<li>Initial investment of\u00a0US$566,802\u00a0for an additional 1% interest on signature of the SPA, increasing Solo&#8217;s total interest from 6.175% to 7.175%<\/li>\n<li>A second investment of\u00a0US$708,502\u00a0for a further 1.25% interest within 15 days of the first\u00a0US dollar\u00a0payment being received for gas from Kiliwani North-1 (&#8220;KN-1&#8221;). Solo&#8217;s total interest will increase to 8.425%<\/li>\n<li>A third investment for the balance of\u00a0US$892,712\u00a0for an additional and final 1.575% interest within 15 days of the commercial operations date being declared, taking Solo&#8217;s total and final interest to 10%.<\/li>\n<\/ul>\n<p>If any payment is missed then that payment option, and only that option, will be automatically cancelled. Payment of the second and third investments will require further funding from cash flow or otherwise to be arranged by Solo.<\/p>\n<p>Following full payment of the consideration, Solo&#8217;s interest will increase from its current 6.175% to a 10% interest in KNDL.<\/p>\n<p>The transaction represents the part exercise of its pre-existing <a href=\"http:\/\/ow.ly\/10fvZn\">option<\/a> to acquire a further 6.175% interest. The remaining entitlement under the option agreement has now expired.<\/p>\n<p>&#8220;Solo is delighted to increase its exposure to the\u00a0KNDL\u00a0project with commencement of production imminent. The project offers a revenue stream that will increase through the commissioning process and into commercial production under the GSA which has take-or-pay provisions and is paid in US Dollars guaranteed by a consortium of banks.\u00a0 By linking the acquisition of our additional interest to project milestones we have been able to further de-risk the investment,\u201d says Solo Chairman Neil Ritson.<\/p>\n<p>The KN-1 well, which is now ready to begin production, has been ascribed gross contingent resources (2C) of gross 28 billion cubic feet by LR Senergy and the Company expects to book reserves from this well by the year-end.<\/p>\n<p>Gas from KN-1 will be sold to the Tanzania Petroleum Development Corporation (TPDC) under a gas sales <a href=\"http:\/\/ow.ly\/10fwRa\">agreement<\/a> (GSA) at the wellhead for an agreed price of\u00a0US$3.00\u00a0mmBTU (approximately\u00a0US$3.07\u00a0per mscf), payable in US dollars. The gas price is not linked to any commodity price so is unaffected by current commodity market conditions.<\/p>\n<p>Gas will be processed at the new Songo Songo Island gas plant and will ultimately be transported by pipeline to Dar es Salaam, where it will be sold into the local Tanzanian market.<\/p>\n<p>The Tanzania Petroleum Development Corporation (TPDC) last month provided a revised work schedule in the \u00a0Kiliwani North license and informed the operator Aminex that the <a href=\"http:\/\/ow.ly\/10fwIj\">commissioning<\/a> of the Songo Songo Island gas plant is expected to commence in early April.<\/p>\n<p>Current participants in the Kiliwani North Development Licence, following TPDC <a href=\"http:\/\/ow.ly\/10fwnM\">back in<\/a>, are: Ndovu Resources Ltd (Aminex) 55.575% (operator), RAK Gas LLC 23.75%, Solo Oil plc 6.175%, Bounty Oil &amp; Gas NL 9.5% and TPDC 5%.\u00a0 On completion of the payments envisaged by the SPA Aminex will hold 51.75% and Solo will hold 10%.<\/p>\n<p>Catch an audio interview with the SPA signing <a href=\"http:\/\/brrmedia.co.uk\/event\/141673\/neil-ritson\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Solo Oil has announced that further to the agreements previously announced with Aminex plc to acquire a further interest in the Kiliwani North Development Licence (KNDL) the company has now\u00a0executed &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/solo-oil-signs-spa-to-increase-interest-at-kiliwani-north-license\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":3881,"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":[137,3917,1322,1709,2119,4270,2342,4269,4271,2466,2472,2543],"class_list":["post-4539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-aminex","tag-bounty-oil-gas","tag-kiliwani-north-development-licence","tag-ndovu-resources-ltd","tag-rak-gas","tag-sale-and-purchase-agreement","tag-solo-oil","tag-songo-songo-island-gas-plant","tag-spa","tag-tanzania","tag-tanzania-petroleum-development-corporation","tag-tpdc","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/10\/Kiliwani-North-2.png?fit=313%2C402&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-1bd","jetpack-related-posts":[{"id":4343,"url":"https:\/\/www.oilnewskenya.com\/index.php\/solo-oil-invests-additional-equity-in-kiliwani-north-tanzania\/","url_meta":{"origin":4539,"position":0},"title":"Solo Oil Invests Additional Equity in Kiliwani North, Tanzania","author":"","date":"February 11, 2016","format":false,"excerpt":"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. The increase in ownership follows\u2026","rel":"","context":"In &quot;Top News&quot;","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\/09\/solo-oil.jpg?fit=320%2C320&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4553,"url":"https:\/\/www.oilnewskenya.com\/index.php\/solo-oil-raises-1-1m-to-fund-kiliwani-north-development-licence-interest-increase\/","url_meta":{"origin":4539,"position":1},"title":"Solo Oil Raises $1.1M to Fund Kiliwani North Development Licence Interest Increase","author":"","date":"April 7, 2016","format":false,"excerpt":"Solo Oil has announced that it has raised\u00a0\u00a3800,000\u00a0(approx. $1.13M) gross proceeds in a Company sponsored placement to be deployed in the Company's active investments in\u00a0Tanzania. The proceeds according to Solo Oil will allow the Company to accelerate its ownership of the additional interest in the now producing Kiliwani North Field,\u2026","rel":"","context":"In &quot;Top News&quot;","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\/09\/solo-oil.jpg?fit=320%2C320&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":4539,"position":2},"title":"Gas Production Commences at Tanzania&#8217;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 &quot;Top News&quot;","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":2194,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzanian-government-gives-go-ahead-to-aminex-for-sale-of-kiliwani-north-development-licence\/","url_meta":{"origin":4539,"position":3},"title":"Tanzanian Government gives go ahead to Aminex for sale of Kiliwani North Development Licence","author":"Samuel Kamau Mbote","date":"December 17, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] Aminex has notified shareholders that it has received confirmation from the Tanzanian Ministry of Energy and Minerals that the Minister has no objection to the proposed transfer of assignment for the sale to Solo of up to 13% of in the Kiliwani North Development Licence (\u2018KNDL\u2019) in Tanzania\u2026","rel":"","context":"In &quot;Top News&quot;","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":2393,"url":"https:\/\/www.oilnewskenya.com\/index.php\/solo-acquires-kiliwani-north-development-licence-in-tanzania\/","url_meta":{"origin":4539,"position":4},"title":"Solo acquires Kiliwani North Development Licence in Tanzania","author":"Samuel Kamau Mbote","date":"February 3, 2015","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] Solo has announced it has now signed the Asset Purchase Agreement with Aminex plc for the first 6.5% interest in the Kiliwani North Development Licence (KNDL) at a total consideration of US$3,500,000. The announcement \u00a0follows prior statements in October and December last year where the company said it\u2026","rel":"","context":"In &quot;Top News&quot;","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":1912,"url":"https:\/\/www.oilnewskenya.com\/index.php\/solo-oil-acquires-interest-in-kiliwani-north-gas-field-tanzania\/","url_meta":{"origin":4539,"position":5},"title":"Solo Oil acquires interest in Kiliwani North Gas Field, Tanzania","author":"Samuel Kamau Mbote","date":"October 15, 2014","format":false,"excerpt":"Solo Oil plc has announced that it has signed binding heads of agreement to acquire an initial 6.5%\u00a0 interest in the soon to be producing Kiliwani North Development License in Tanzania from Ndovu Resources Ltd. for a total consideration of US$3.5 million (\"Initial Acquisition\"). Solo also has a 45 day\u2026","rel":"","context":"In &quot;Top News&quot;","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":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4539","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=4539"}],"version-history":[{"count":3,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4539\/revisions"}],"predecessor-version":[{"id":4543,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4539\/revisions\/4543"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/3881"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=4539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=4539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=4539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}