Petroleum Africa
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Thursday, December 18, 2014
Solo Oil and Aminex plc have both reported that confirmation has been received from the Tanzanian Ministry of Energy and Minerals that the Minister has no objection to the proposed assignment in the sale of up to a 13% interest in the Kiliwani North development Lease (KNDL) to Solo for a total consideration of $7 million. Completion of the initial 6.5% interest now remains subject only to a formal Deed of Assignment being signed by all participating parties.
The two firms have agreed to extend the deadline on the purchase of the initial and an additional 6.5% to January 30 as a result of the longer than expected time taken to obtain the no objection notification.
The KNDL contains the Kiliwani North-1 well, (KN-1) well, which is expected to start production at approximately 20 Mmcf/d in early 2015. Once the Deed of Assignment is complete and if Solo elects to take up its full 13% entitlement, the KNDL JV partners will be Aminex’s subsidiary Ndovu Resources with 52% (operator), Rak Gas with 25%, Bounty Oil 10%, and Solo with 13%.
Once producing, KNDL will represent a major milestone for Solo by providing first revenues to the company from its Tanzanian assets. Independently verified resources at KNDL are estimated to be 45 Bcf of gas in place. Construction of a 2-km pipeline from the KN1 wellhead to the new Songo Songo processing plant has now commenced and is expected to be completed by the end of 2014.
Aminex has also reported that a Gas Sales Agreement for KNDL is largely complete and is expected to be signed prior to the commissioning of the 2-km pipeline and the Songo Songo processing plant in early 2015.
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