Solo Oil has announced that the Tanzanian government has approved of a two-year appraisal licence for the Ntorya-1 gas discovery
The Ntorya-1 well was drilled in the Ruvuma Basin in 2012 and has successfully tested gas at a rate of 566,336 standard cubic metre per day with 139 barrels per day of 53 degree API condensate.
An independent estimate by consultant firm ISIS Petroleum on the well indicated a gross discovered volume of five billion cubic metres in place and the operator has evaluated this to be a contingent resource of 3.7bn cubic metres of recoverable gas.
ISIS Petroleum estimated that the 48bn cubic metres of gross unrisked gas in place are potentially present at Ntorya and that further appraisal would be required to confirm this volume. The mean gross unrisked gas in place in discoveries, prospects and leads within the PSA now is estimated to be in excess of 162bn cubic metres, company sources said.
Neil Ritson, executive director of Solo Oil, said, “This award represents a significant step in the commercialisation of gas in the onshore Ruvuma Basin and we look forward to the acquisition of additional seismic later this year. The conclusion of a farmout with a new partner will also assist in ensuring the work programme advances soon as there is a large gas resource yet to be developed.”
The Ruvuma Production Sharing Contract area covers 6,079 sq km on the Tanzanian border with Mozambique, where over 2.8 trillion cubic metres of gas has been discovered in recent years.
The programme will consist of 2D seismic to delineate the extent of the Ntorya discovery and the drilling of an appraisal well, sources added.
Participants in the Ruvuma PSA are Ndovu Resources Ltd (Aminex) with 75 per cent stake as operator and Solo Oil with 25 per cent interest.
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