Solo Oil has announced that it has been informed by Aminex PLC, operator of the Kiliwani North Field, that payment has now been received for its first invoice in relation to gas produced from the Kiliwani North-1 well in Tanzania during April and May and supplied to the Tanzania Petroleum Development Corporation (TPDC).
Payment was made in US$ and in accordance with the company's Gas Sales Agreement (GSA) with TPDC. The company continues to work with TPDC during the current testing period to achieve an optimal rate and during this phase is being paid for all gas produced.
Neil Ritson, Solo's Chairman commented:
"Solo is delighted that the first payment for gas from the Kiliwani North field has been made with minimal delay. Whilst the first payment is quite small, reflecting initial commissioning rates, we are pleased that an income stream has now commenced. Future payments will be larger and create an underlying cash flow from operations that will support Solo's ongoing investments. At a production rate of 25 million ft3/d. and Solo's current interest these payments equate to approximately US$150 000 per month."
Adapted from a press release by Louise Mulhall