Solo Oil said the Mtwara licence which is part of the Ruvuma Production Sharing Agreement (PSA) has been granted a further one year extension.
The move was give the green light after ministerial approval in Tanzania.
The Mtwara Licence includes the Ntorya Appraisal Area where the company has an existing discovery well, Ntorya-1.
It has been tested at a rate of 20 million standard cubic feet per day of gas with 139 barrels of associated condensate per day.
Neil Ritson, Solo’s chairman,said: “Solo is delighted with progress being made towards appraising the discovery made at Ntorya-1 which is estimated to have the potential for over 1 tcf of gas in place.
“The company is currently reviewing its options for funding its share of the planned well costs and is in early discussions with potential farm-in partners.”