Solo Oil has announced that it has raised £800,000 (approx. $1.13M) gross proceeds in a Company sponsored placement to be deployed in the Company’s active investments in Tanzania.
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, in particular the acquisition of the Second Tranche payment as announced on 4 April 2016.
“With the Kiliwani North-1 well now flowing gas into the Songo Songo gas processing plant this is an ideal time for Solo to accelerate its ownership of the project and participate in the growth of revenues from gas sales. This is a very exciting time for the Company as we reach first material production and revenue,” says Solo’s Chairman Neil Ritson.
This will take Solo’s working interest in the Kiliwani North Development Licence to 8.425%.
The final payment of the intended acquisition at Kiliwani North, taking the Company’s ownership to 10%, will be completed when the commissioning phase ends and gas production is managed under the long-term take-or-pay provisions of the Gas Sales Agreement with the Tanzanian Petroleum Development Corporation.
Net revenue from the Kiliwani North Development Licence, which commenced gas production earlier this week, is expected to ramp up to US$2 – 2.5 million per annum net to Solo’s interests following the commissioning phase which is anticipated to last from 90 to 100 days.
On completion of the payments envisaged by the SPA Aminex will hold 51.75% and Solo will hold 10%.Other participants include: RAK Gas LLC 23.75Bounty Oil & Gas NL 9.5% and TPDC 5%.