British Oil firm Solo to widen investment in Tanzania despite half-year loss

water rigBritish based Solo Oil  said it will continue to actively assess new investment opportunities in Africa and elsewhere despite the oil market uncertainty.

The company said its pretax loss widened in the first half of 2015 and said its investments in the Kiliwani North gas field in Tanzania and the Ruvuma production sharing agreement in Tanzania represent its most significant investments and are therefore priorities.

Solo said  the prolonged period of depressed commodity prices is offering opportunities for selective and careful investment.

“Current market conditions with a prolonged period of depressed commodity prices offers increased opportunities for selective and careful investment. The Company therefore continues to actively assess additional new investment opportunities in Africa and elsewhere and will make further investments in suitable ventures as and when it is considered appropriate,” said Solo.

In Tanzania the 6.5% owned Kiliwani North project, Solo’s most advanced asset, is expected to see first gas this year, once contracts are signed-off.

It will mark the group’s first revenue, and will advance the Tanzania business which also comprises the potentially larger near Ntorya appraisal project, as well as a right to double its stake in Kiliwani.

Solo Oil highlighted that appraisal drilling at Ntorya could potentially unlock substantial value, while Kiliwani would provide ongoing revenue.

“Gas prices in Tanzania are delinked from the global oil markets and this offers the Company a stable revenue stream at a time of uncertain returns elsewhere,” it added.

The company could also see an entry to Nigeria, via a 20% interest in Burj Africa which could be awarded field development assets in the country, Pro active investors UK reported .

Credit: Pro active Investors and London South East

 

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