Solo oil provides update on Kiliwani North

Solo has been advised by operator Aminex PLC that the Kiliwani North-1 well is currently undergoing final well integrity testing prior to first production. This follows the signing of a Gas Sales Agreement (GSA) in January. The gas price agreed in the GSA of US$3.00 per million BTU is indexed-linked to the US consumer price index and therefore not reliant on global oil prices. The company will be paid in US Dollars for all produced gas including commissioning and testing gas.

Production for the Kiliwani North-1 well for is expected to begin in mid-February. Initial production rates will be managed to allow for testing and commissioning of the recently completed Songo Songo gas processing plant and related pipelines, while also recording critically important pressure and flow rate measurements to determine the optimal flow rate to maximise the life of the reservoir.

Solo currently holds a 6.175% interest in the Kiliwani North Development Licence where the Kiliwani North-1 well is located and also an option to acquire a further 6.175% interest in the Kiliwani North Development Licence.

LR Senergy has ascribed gross 28 billion ft3 best estimate contingent resources to Kiliwani North-1, which was contingent on completion of the GSA. It is therefore Solo's expectation that reserves at Kiliwani North will be booked later this year.

Neil Ritson, Solo's Chairman, commented: "Solo is delighted that the momentum of the Kiliwani North project is being maintained after the signing of the GSA and we anticipate being able to report first gas and receipt of first revenue in the comings months."

Edited from press release by Angharad Lock

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