Solo Oil has farmed out its interest in the Ruvuma petroleum sharing agreement to help it accelerate two appraisal wells in Tanzania.
The company has reached an agreement with Aminex to farmout a 12.5% net working interest in the Ruvuma petroleum sharing agreement in a deal that sees Bowleven join the Ruvuma PSA joint venture with a 50% net working interest.
Solo has agreed to participate in the farm-out of 50% of its interests in the Ruvuma PSA and receive a pro-rata share of the agreed farmout proceeds in the form of a work programme carry of US$2.5 million and various production bonuses associated with the existing Ntorya gas condensate discovery.
Neil Ritson, Solo’s Chairman, commented: “Solo has been working for some time to support a joint farm-out with Aminex that will allow the Ruvuma PSA work programme to be accelerated, notably the drilling of two appraisal wells at the Ntorya gas-condensate discovery.
Solo will retain a 12.5% non-operated interest in the Ruvuma PSA. Aminex will retain an operated 37.5% interest and Bowleven will hold a 50% interest.