Ntorya project in Tanzania which recently had a successful appraisal project has been set up for development.
Solo has a 25% stake in the Aminex operated the project, though as the project moves towards development the AIM-quoted minority partner will be seeking some form of transaction in terms of a funding partner or a complete divestment.
Because of an upgraded resource estimate, the assets value was recently boosted by Aminex which now sees some 1.3 trillion cubic feet of gas at Ntorya.
Solo has made significant advances in its investments in Tanzania in the last reporting period, especially in the Ntorya gas-condensate discovery.
“Receipt of the requested 25-year development license for Ntorya, which is expected in late 2017, will allow the finalization of plans to commercialize Ntorya; which in Solo's case may involve the sale of the company's equity position depending on negotiating advantageous commercial terms with a third-party.”
Solo has also invested in the revenue generating Kiliwani North gas asset, which is producing at a gross rate of 15mln cubic feet per day and during the reporting period, it also invested into a 10% stake in Tanzania focussed Helium One.
“Potentially World Class” was the description of the Helium One investment by the company because it had an opportunity with compelling economics and market dynamics.
“Solo is currently reviewing the recent drilling and testing by other operators in the Weald Basin with a view to assessing future investment potential within the basin,” the company added.
While Kiliwani North contributed £451,000 of gas sales, the company reported a £306,000 loss too.