Solo Oil acquires 6.7% stake in Kilwani north from Aminex

14th Oct 2014 14:22

Subject to reaching a final agreement, Africa-focused oil explorer Solo Oil has announced that it will purchase 6.7% of the Kilwani north license (KNDL) in Tanzania, from a subsidiary of London-listed Aminex, for a total consideration of $3.5m in cash.From 13 October the firm has a 45-day window during which it may raise its stake to 13% if it so chooses.Upon closure the contract will give Solo its first revenues from Tanzania. Included in the development zone is the Kiliwani North 1 well (KN1), which has an estimated 45bn cubic feet of gross gas resources in place and is expected to produce at an approximate rate of 20m cubic feet per day (mmscfd).Once production starts at KN1 the gas will flow through a two kilometre pipeline to the Songo Songo gas processing plant and from there to the capital of Dar es Salaam - allowing for the immediate monetization of production.The company's executive director Neil Ritson highlighted the company's on-going working relationship with Aminex - with whom it already partners in the Ruvuma field, located in the south of the same country.As of 15:17 shares of the AIM-listed outfit were rising by 13.38% to 0.81p.