How it's doing
Solo added it has enough cash to meet its commitments in Tanzania but has now set up a data room for anyone interested in acquiring its 25% stake in the Ruvuma PSC.
A formal sales process started in March, with Solo, in the meantime, looking for another portfolio of European gas assets to acquire.
Kiliwani North - Solo has an 8.4% stake in the Kiliwani North field which, in 2016, gave the company its first production generated revenue.
After around 2 years of operation, Kiliwani’s single well has just gone through an upgrade programme and is yet to come back onstream.
Ruvuma - Solo also owns 25% of Ruvuma, an expansive and high potential area in Tanzania that already hosts the Ntorya gas field development project.
Here, the asset development is set to be driven by The Zubair Corporation which is acquiring a 50% stake in Ruvuma via a farm-out transaction with current operator Aminex.
It will leave Aminex with 25% of the asset, the same as Solo.
Zubair plans to conduct a minimum work programme targeting a minimum gross rate of 40mln cubic feet of gas per day (MMcf/d) which amounts to 6,700 barrels equivalent.
It will also drill, complete and test a new well, Chikumbi-1 which will be a follow-up to the successful wells of at Ntorya.
The well will be located up-dip from both the Ntorya-1 and Ntorya-2 wells.
Pre-drilling operations for the Chikumbi-1 well are ongoing, as the Tanzanian government is actively working to complete the farm-out.
What the boss says: Chief executive Tom Reynolds
"It is clearly disappointing for management and shareholders that we could not complete the proposed transaction, however, the value of the asset package changed significantly after the signing of the SPA and it is the board's responsibility to ensure the company does not overpay for acquisitions."
- Solo aims at establishing itself as a mid-cap E&P
- The Chikumbi-1 well is scheduled to start after the completion of the Aminex farm-out
- A data room has been set up to sell Ruvuma stake
- Looking at other European gas portfolios