Solo Oil PLC (LON:SOLO) shares rose today as the firm received a significant boost for its flagship Tanzania gas project, where partner Aminex PLC (LON:AEX) almost tripled its estimate of gas resources.
Aminex, in a stock market statement, told investors that its new estimate sees some 1.3 trillion cubic feet of gas initially in place at the Ntorya project, up from prior estimates of 466 billion cubic feet.
Solo Oil owns a 25% interest in the gas discovery, while Aminex is driving the project with a 75% stake in the asset.
WATCH: Solo Oil boss delighted with estimated Ntorya gas resources boost
WATCH: Aminex announces major upgrade to Ntorya gas resources estimate
This major upgrade comes amid ongoing analysis of the results from Aminex’s recent and successful Ntorya-2 appraisal well, in addition to findings of a re-evaluation of existing 3D seismic data.
Perhaps significantly, Aminex highlighted that the upgraded 1.3 TCF estimate still only covers the Ntorya appraisal area and does not account for any of the resource potential in the surrounding exploration acreage.
READ: Aminex hires new chief operating officer and head of legal
Exploration aside, Aminex is presently working with consultant Baker Hughes to put together a commercialisation plan for the Ntorya resource.
The plan, along with an associated development plan for the Tanzania authorities, is expected to be ready in the near future – the company said ‘early September’.
"The updated modelling, mapping and corresponding resource numbers continue to confirm that the Ruvuma Basin is of significant importance to Tanzania and the company,” said Jay Bhattacherjee, Aminex chief executive.
“We continue to work directly with the Tanzania Petroleum Development Corporation to create an optimal development plan so as to begin gas production from the licence as quickly as possible."
In late morning trading, Solo Oil shares were up 4.9%, or 0.25p at 5.28p.
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