Solo Oil said it has informed the operator of the Kiliwani North development licence it does not intend to exercise its immediate option over a further stake in the project.
The additional 1.25% share was made available to Solo having received first revenue from gas sales in mid-August.
The company also continues to hold a further option over an additional 1.575% in the producing Kiliwani North field.
Solo Oil said it would determine its investment in that tranche in due course.
The company also holds a 25% interest in the Ruvuma Production Sharing Contract area in Tanzania which contains the Ntorya-1 gas condensate discovery well.
Neil Ritson, Solo’s chairman, said:”We are very pleased with the progress being made at Kiliwani North now that the Songo Songo Island gas processing plant has been fully commissioned and we expect to see further production and gas sales news in the next few weeks. Kiliwani North is an important project for us as it represents our first revenue from Tanzania, however, Solo has elected to focus its immediate investment on the larger potential at Ntorya, where appraisal drilling of will shortly be underway.”
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