Shares in Solo Oil and Aminex jumped on Thursday morning after the companies announced signficant results from the flow testing of the Ntorya-1 well at its discovery in the Ruvuma Basin onshore in southern Tanzania.
The firms reported that the well flowed gas at a measured rate of 20.1m cubic feet per day (equivalent to 3,350 barrels of oil per day). Original reservoir pressure was indicated at 5,424 pounds per square inch and only small quantities of formation water were produced.
Samples from testing conducted before and after pressure build up were taken to assist with designing a future development programme, the companies said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
A programme of seismic acquisition will follow later this year in order to gain a fuller understanding of the size of this discovery and to identify further drilling targets. The findings of a reserves report on the region will be made public shortly.
Neil Ritson, Solo Executive Director, said: "We are delighted with these test result which confirms our expectation that commercial rates would be obtained. The presence of liquids (condensate) greatly enhances the economics of the discovery and provides further encouragement that oil may be discovered in the onshore basin.
"The commercial potential is further supported by the Tanzanian government's recent announcement that it has signed a financing agreement to build a 36" diameter gas pipeline from Mtwara, 25 km away from the Ntorya-1 discovery, to the capital Dar es Salaam. The imminent construction of additional gas infrastructure will further add to the value of this discovery and the onshore Ruvuma as a whole."
Solo's share price leapt 23.66% to 0.57p and Aminex jumped 13.04% to 4.55p by 08:53.
December 2023 NS&I Premium Bond winners - check now to see what you’ve won
If you hold money in NS&I Premium Bonds, you can check from today (2 December) to see if you have won in the December prize draw. Here’s how to check.
By Vaishali Varu Published
OpenAI – corporate drama unleashed
OpenAI, the firm behind ChatGPT, was in uproar as its boss was booted out, briefly snapped up by Microsoft and then brought back again.
By Dr Matthew Partridge Published