Solo Oil has announced that it has raised £2,000,000 gross proceeds through the issue of 1,111,111,111 new ordinary shares in a Company sponsored placement to a single institutional investor, being Epsilon Pty to fund the Company’s share of the Ntorya-2 well in Tanzania and settle all outstanding amounts due to YA Global Master SPV, Ltd under an Equity Swap Agreement which has now been terminated.
According to Solo Oil Chairman Neil Ritson the Company is now funded for its share of the well ahead of the spud date in the fiurth quarter.
“The Company is now funded for its share of the estimated dry-hole costs for the upcoming high impact Ntorya-2 appraisal well in Tanzania Petroleum Development Corporation, Tanzania. We look forward to further updates from the operator Aminex as we near the expected spud date during the fourth quarter of this time.”
Appraisal drilling in the Ruvuma PSA following the Ntorya 1 discovery which was ealier expected to commence last summer according to Block operator Aminex is one of two wells which will be drilled in the Block in 2016 including Ntorya-2 to offset and appraise the Ntorya-1 discovery as well as the Ntorya-3, also being planned to test the main channel system.
Ntorya-2 is expected to be drilled 1500m to southwest of discovery well and is estimated to have a 60 percent Chance of Success based on Ntorya-1 well while Ntorya-3 well is expected to be drilled 5.65km west of Ntorya-1.
Already the company has completed a new seismic programme in the vicinity of its Ntorya-1 discovery on the Ruvuma PSA acreage in 2015.
Aminex currently has an obligation to drill a minimum of four exploration wells by the end of 2016 but is in discussions with the Tanzania Petroleum Development Corporation (TPDC) to focus resources on the development of Ntorya with a view to accelerating the supply of gas into the new regional pipeline system.
Should the Company have success in its appraisal and development drilling programme in the Ruvuma Basin, any further gas discovered can be commercialized through the new pipeline serving the Kiliwani North well.