Solo Oil Plc - Oil Barrel Conference 13th September
Solo Oil will be presenting at the 54th Oilbarrel Conference - Thursday 13th September 2012 , among other companies presenting are Petroceltic International and Simba Energy. Details of venue and times can be found here - http://oilbarrel.com/pub/articles/article_id-38
Solo look to be entering a potentially very interesting period with major developments ongoing at both its key assets. In Canada via its investment in Tsx listed Reef Resources and in Tanzania via its Production Sharing Agreement ( PSA ) with london listed Aminex.
Solo,s last production updates holds more than a fair few clues that solid progress is being made in Canada and also at the ruvuma basin in Tanzania. For example in Canada the company and its partner have been carefully preparing the ground and are now commencing full scale production in Ontario, solo,s boss has recently said they are ontrack for 500 boepd production by end of 2012 *
From last official update via RNS: ( Ontario Canada )
28 August 2012
Solo today announces that full-scale oil production has commenced at the Ausable Field in South Western Ontario, Canada, operated by Solo's Joint Venture partner, Reef Resources Limited ("Reef"). Reef has reported that the field has been on production since the 13 July 2012.
Two of the four wells at the Ausable Oil Field (Ausable #1 and Ausable #5) have now been put on line and total liquids potential of 275 barrel oil equivalent per day (boepd) gross has been computed based on the current gas cycling rate of 236 thousand cubic feet per day (mcfd). The initial two wells production rate averaged 13 boepd although this is now being rapidly scaled up as gas cycling rates are increased.
These initial two wells and the surface facilities have now been fully configured for long-term production. Wells Ausable #2 and Ausable #4 will additionally be placed on production and will add substantially to current daily production. Reef anticipate increasing the gas cycle rate about 20-fold to 5,000 mcfd progressively over the next 4 to 6 months and project that liquids production from the four well scheme will then rise to approximately 700 boepd (gross).
Gas has been injected into the reservoir purchased from a local gas utility and will shortly be supplemented with gas from the North and South Airport wells, both drilled by Reef. The cycling of gas provides both pressure support to the reservoir and additional liquids production. Since March 2012, about 50 million standard cubic feet of dry gas have been injected into the reservoir, which represents approximately 10 per cent of the intended volume. As gas injection continues in the coming months, both oil and condensate production volumes will increase.
The recently completed facilities upgrade has successfully addressed all major issues arising from the installation of venturi pumps in the wells and has incorporated the modifications needed for sustainable long-term gas cycling.
The upgrade was a vital component in the optimisation of Reef's EOR program, which is already delivering results. Reef is currently reviewing the final phase of the facilities project, in which the addition of refrigeration will allow the capture of additional natural gas liquids from the production stream. Reef is now well placed to increase production at Ausable and start rolling out its fully configured EOR process across its portfolio of nearby oil projects.
Solo currently holds a 28.56% interest in the project and an option to increase that to 38.1% in return for further investments of CDN$ 1 million. Based on projected production rates the project is expected to generate positive cashflow to its owners by late 2012.
Neil Ritson, Solo Executive Director, commented:
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"We are delighted that, after the recent comprehensive facilities upgrade, the Ausable Field is now entering full-scale operation. As additional wells are hooked up to the new facilities and gas recycling rates are increased we remain confident that our previous estimate of a gross 500 boepd remains achievable by end 2012. The addition of refrigeration facilities and the use of equity gas from the Airport wells will further enhance the economics of the project, which now offers substantial benefits to Solo and its shareholders."
Last Tanzania update :
Highlights
· Mean unrisked GIIP within identified leads, prospects and discoveries of 5.75 tcf
· A total 1.17 tcf mean unrisked GIIP at Ntorya of which 178 billion cubic feet (bcf) is discovered
· A large lead up-dip of Ntorya is seen to have a mean 2.62 tcf unrisked GIIP potential
· ISIS also recognises significant, but so far unquantified, oil potential in the Karoo Formation
For full details Follow Link -
http://www.investegate.co.uk/article.aspx?id=201207020700115868G
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Solo Oil Plc (Solo), formerly Immersion Technologies International Plc, is a United Kingdom-based company engaged in acquiring a diverse portfolio of direct and indirect interests in oil and gas exploration, development and production assets, which are based in the United States, Europe or Africa. Both on-shore and off-shore interests will be considered. Solo, together with its subsidiaries, is organized into three operating divisions: Corporate; Product Research, Development and Design, and Product Manufacture. The Company’s subsidiaries include Immersion Technology Property Limited, Immersion Technologies (Singapore) Pte Limited, Immersion Technologies Australia Pty Limited, Whise Acoustics Limited and Whise Technologies Pty Limited. On December 21, 2009, the Company disposed Immersion Technologies (Singapore) Pte. Ltd. In April 2012, Obtala Resources Plc terminated the disposal of its Ilakon Limited to the Company. more »
Aminex PLC is engaged in the exploration for, and the development and production of oil and gas reserves. Its principal area of activities includes the United States, East Africa, North Africa and North Korea. Its segments include Producing Oil and Gas Properties, Exploration Activities and Oilfield Services and Supplies. The Company's licenses in Tanzania include Nyuni PSA, Kiliwani North and Ruvuma PSA. During the year ended December 31, 2010, it drilled three wells, one in Tanzania and two in the United States. As of December 31, 2010, the Company held leases at Shoats Creek covering approximately 2,100 acres. Aminex Oilfield Services & Supply Company (AMOSSCO), its wholly owned subsidiary, provides logistics services to oil industry and sources oilfield equipment and consumables to international oil companies. In March 2012, it announced that Aminex USA, Inc. its subsidiary, completed agreements to sell leases and other assets consisting of the Somerset Field in Texas. more »
Petroceltic International plc (Petroceltic) is an international oil and gas exploration, development and production company. The Company focuses to discover and acquire assets with material hydrocarbon resource and to exploit these assets. The geographical focus is Middle East-North Africa (MENA), the Mediterranean basin and the Black Sea. As of November 7, 2012, the Company had operations in Algeria, Bulgaria, Egypt, Italy, Kurdistan Region of Iraq and Romania. Oil and gas exploration is focused in Algeria, Kurdistan Region of Iraq, Romania, and Italy. The Company's development and production operations are located in Bulgaria and Egypt. The Company also has a royalty from certain Kinsale Gas Fields in Ireland. more »
.JPG)
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http://oilbarrel.com/news/conference-report-1-solo-oil-looks-to-leverage-its-capital-in-tanzania-and-canada-while-a-slimmed-down-roxi-petroleum-reports-rising-production-and-exciting-new-drilling-plans
Conference Report 1 - By Amy McLellan
Monday September 17th 2012
Soon it was back to business, with Neil Ritson, executive director of Solo Oil, taking to the stage. It is not the first time Ritson has appeared at oilbarrel.com; he has previously had outings as the boss of Regal Petroleum and more recently of Leni Gas & Oil. Solo is something of a part-time job but it’s certainly one that provides Ritson with a nice contrast to the oilfield rehabilitation projects that take up his time at Leni. AIM-quoted Solo’s flagship project is frontier wildcatting in Tanzania, where it recently participated in the Ntorya-1 gas strike.Solo has a 25 per cent stake in this Aminex-operated project, an equity level that suits Solo’s comfort zone. “We invest in oil and gas projects and deliberately choose not to operate,” explained Ritson. “We exploit the knowledge and skills of the current operator. We’re definitely table top, not on the ground.”The aim, said Ritson, was to leverage the company’s capital to crystallise value for shareholders. He believes the Ruvuma Basin project neatly exemplifies this strategy. The company farmed in for a 12.5 per cent stake in 2010, paying a 50 per cent premium to participate in the Likonde-1 well. This wildcat wasn’t a commercial discovery but it did deliver evidence of a working – and highly pressured – hydrocarbon regime (it was abandoned for safety reasons). “We increased our equity to 18.75 per cent and then 25 per cent through the progressive exit of Tullow [the former operator] at virtually no cost,” said Ritson. Tullow exited before the Ntorya-1 well was deepened to find gas, leaving Solo with 25 per cent of a well that flowed 20 million cubic feet per day plus 139 barrels per day of condensate from just a 3.5 metre perforation. Solo believes the well was drilled on the edge of a much larger accumulation, with the current reserve estimate of 178 BCF possibly just a fraction of the possible 990 BCF sitting updip. This is, of course, dwarfed by the massive volumes of gas being found in the deep offshore but Ritson pointed out that the Solo/Aminex project has a distinct advantage over the 50 TCF gas clusters being found by the likes of Anadarko, ENI and BG. “We are onshore, these wells cost about US$10 million and we are close to infrastructure,” said Ritson. “Our cost structure makes these volumes very attractive and we will have early mover advantage to put this into a pipeline.”This is key; the acreage sits at the mouth of a proposed new pipeline being built by Chinese money that will connect to energy-hungry customers in Dar es Salaam. Solo reckons there’s unfilled demand for at least 500 million cf/d in the Dar es Salaam region – and the timeline for the construction and commissioning of the new pipeline mirrors that for any likely development of Ntorya. And Ntorya could be just the beginning, with independent consultants suggesting the PSC could host 5.75 TCF of gas (1.5 TCF net to Solo). The partners are keen to acquire further seismic before drilling in these frontier lands. The plan is to acquire 890 km of 2D later this year ahead of drilling two exploration wells in the second half of 2013 and an appraisal well at Ntorya. To fund this, Solo and Aminex are opening a joint data room to find a farm-in partner. They are offering 40-50 per cent of the equity and operatorship to attract a partner prepared to fund an active work programme.
Solo isn’t just about frontier exploration, however. The AIM-quoted small cap is also seeking to build early cash flows through an enhanced oil recovery project in Ontario, Canada – although the cash hasn’t been as early as first hoped, admitted Ritson. Solo holds a 28.56 per cent interest – with an option to increase to 38.1 per cent - in a project targeting Ordovician-aged shallow reefs. These have the advantage of being easily identifiable on seismic but are shallow and low porosity so recovery rates are in the single digits. The plan therefore is to repressurise these low energy reservoirs by pumping in gas, either from other wells on the concession or buying it in from the local utility (gas prices are depressed in Canada). Ritson said progress has been slower than hoped as the operator, Reef Resources, sought the right engineering solution but they were now at a point where the first reef, Ausable, could be pumping significant amounts of oil, around 500 bpd come early 2013. “Once we have the engineering template we can roll this out to a number of other Ordovician reefs,” said Ritson. “There’s no exploration risk, we are just taking the engineering solution and repeating it.”
The company is keen to add further projects to the portfolio – again taking on non-operator roles where it can leverage its capital – but this is unlikely to be for at “least another three months” when a successful farm-out in Tanzania could trigger a rethink on the current low share price.