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Solo Oil upbeat on fresh data from Ntorya
Solo Oil announced the results of the recently-completed competent persons report conducted independently by RPS Energy Consultants on Monday, which it said had resulted in a significant resource upgrade of the Ntorya gas discovery in the Ruvuma Petroleum Sharing Agreement, where Solo holds a 25% working interest.
The AIM-traded firm said operator Aminex also confirmed that, when taken together with the Ntorya gas commercialisation study prepared by io oil & gas consulting last year, the resources indicate the commercial feasibility of a proposed development at Ntorya.
It said the Ntorya 2C contingent resource estimate increased to gross 763 billion cubic feet - an improvement of over 10-fold from the 2015 competent persons report.
Ntorya Pmean gross gas initially in place was upgraded to 1.87 trillion cubic feet, which was an increase of 44% on the previous management estimate of 1.34 tcf and an increase of approximately 12-fold from the previous competent persons report, pre-drilling of Ntorya-2, in 2015.
It added that io consulting confirmed that the Ntorya gas development project could be sanctioned with three wells producing into a raw-gas pipeline to the Madimba gas plant, approximately 33 kilometres away.
Based on the report, Solo now held net resources of approximately 467 bcf Pmean gas initially in place, resulting in excess of 190 bcf of most likely contingent resources net to its 25% interest.
"A further significant and material resource upgrade made independently by RPS supports the company's view that Ntorya is a major gas field within the regional market, thereby underpinning our development plans," said Solo Oil executive chairman Neil Ritson.
"The independent verification of our net interest equivalent to over 30 mmboe underlines the significant value of Ntorya within our portfolio."
Ritson said that, when taken with the results of the io consulting commercial feasibility study, the board was now confident that Ntorya could be economically produced with limited further major capital expenditure.
"This gives us line of sight to additional revenues and strengthens our ability to monetise our interest at the appropriate time.
"We now look forward to the confirmation that a rig has been secured for the drilling of appraisal well Ntorya-3, and to continued progress on the award of a 25-year development licence for the field."