Gas from the KN-1 well at Kiliwani is sold at the well head in $US at a fixed price
Companies: Aminex Plc, Solo Oil Plc
Aminex (LSE:AEX) and Solo Oil (LSE:SOLO) have released updates from the Kiliwani North-1 well in Tanzania this morning, welcoming Aminex's first payment in relation to gas produced at the site.
The project is a joint effort between several companies, with Aminex (the operator) owning 55% and Solo owning 6%. This is the first payment for gas from Kiliwani North-1 and will be supplied to the Tanzania Petroleum Development Corporation.
Gas from the KN-1 well at Kiliwani is sold at the well head in $US at a fixed price. It is then supplied to Songo gas processing plant where it becomes commingled with gas from the Songo Songo gas field, before being fed directly into the Tanzania's new pipeline infrastructure to Dar es Salaam.
Kiliwani North Field
The Kiliwani North Field is located off the coast of Tanzania and has an independently ascribed 28 BCF gross contingent (2C) resource, testing at 40 mmcfd.
Neil Ritson, Solo's Chairman commented:
"Solo is delighted that the first payment for gas from the Kiliwani North field has been made with minimal delay. Whilst the first payment is quite small, reflecting initial commissioning rates, we are pleased that an income stream has now commenced. Future payments will be larger and create an underlying cash flow from operations that will support Solo's ongoing investments. At a production rate of 25 million cubic feet per day and Solo's current interest these payments equate to approximately US$150,000 per month."