Tanzania: Solo Oil Actively Assessing New Opportunities

Posted on : Wednesday, 30th September 2015

Solo Oil has told investors that it continues to actively assess new investment opportunities in Africa and elsewhere.

The company, currently approaching key milestones in Tanzania, in its interim results statement, said the prolonged period of depressed commodity prices is offering opportunities for selective and careful investment.

And Solo says it will make investments in suitable ventures as and when it is appropriate.

In Tanzania the 6.5% owned Kiliwani North project, Solo’s most advanced asset, is expected to see first gas this year, once contracts are signed-off.

It will mark the group’s first revenue, and will advance the Tanzania business which also comprises the potentially larger near Ntorya appraisal project, as well as a right to double its stake in Kiliwani.

Solo Oil highlighted that appraisal drilling at Ntorya could potentially unlock substantial value, while Kiliwani would provide ongoing revenue.

“Gas prices in Tanzania are delinked from the global oil markets and this offers the Company a stable revenue stream at a time of uncertain returns elsewhere,” it added.

The company could also see an entry to Nigeria, via a 20% interest in Burj Africa which could be awarded field development assets in the country.

Closer to home, Solo Oil is also among the stakeholders in the high profile Horse Hill project, onshore UK, where a well test is anticipated later this year.

In terms of financial results, the pre-revenue company reported a £372,000 operating loss, though it also revealed £679,000 of charges relating to a financial instrument with YA Global Master as well as £49,000 for other finance charges.