TPDC to join Solo Oil at Kiliwani North

Solo Oil’s stake in the Kiliwani North Development Licence will be pared back slightly as Tanzania Petroleum Development Corporation (TPDC) buys in to the licence.

The AIM-listed company announced on Monday that its interest will drop from 6.5% to 6.175% as TPDC looks for a 5% working interest as a fully paying partner.

The deal is subject to TPDC paying the existing joint venture partnership a 5% pro-rata share of the development capital spent to date.

Solo Oil chairman Neil Ritson said: "Solo is delighted that TPDC have chosen to exercise their back-in rights which will further increase their alignment with the partnership developing Kiliwani North. We continue to anticipate reaching final agreement on the gas sales agreement shortly and gas sales revenues commencing soon after."

The company expects the Kiliwani North 1 well will produce up to 30m feet per day of gas, which will provide Solo Oil’s first revenues from its investments in Tanzania.

At 1208 BST, Solo Oil share were up 4.5% to 0.428p.