The Mtwara Exploration License which sits within the Ruvuma PSA and contains the Ntorya gas field has been officially extended by the Ministry of Energy Tanzania.

This confirmation was received by Solo Oil from Ndovu Resources Limited. Ndovu is the owner of Aminex PLC and this extension was one of the last things remaining for the company to finalise a farm-out agreement with ARA Petroleum Tanzania Limited (ARA).

Once the deal has been completely concluded, ARA would be installed as an operator under the Joint Operating Agreement (JOA) and Solo hopes for ARA to actively lead the Ntorya Gas Field development soon.

The continuous increase in demand for gas in Tanzania will be met with adequate supply as the commercialisation and the continuous development of the Ntorya Field continues to take place.

The CEO of Aminex, Tom Reynolds, commenting on the update said “We want to reassure shareholders that we are working hard to deliver our strategy, whilst running the company as cost-efficiently and effectively as possible.

“Our ongoing sales process is progressing and we are encouraged by the interest in the company’s natural gas assets in Tanzania. The Board will base any decision on what is in the best interests of Solo’s shareholders, updating the market when we can with any developments. In parallel, we continue to screen opportunities in line with our augmented growth strategy and believe that the recalibration of the European gas market in light of the current turmoil will present the company with an increased pipeline of compelling opportunities a broader range of revenue-generating gas and power opportunities.

These are undoubtedly challenging times for the industry, and indeed the world, however, we are navigating the challenges accordingly as we seek to realise value from the existing portfolio and set the company on its stated strategic path.”

The Ntorya gas field is located in south-east Tanzania and is part of the Ruvuma Petroleum Sharing Agreement (PSA). It is jointly owned by its operator Aminex PLC who holds a 75% stake and United Kingdom-based Solo Oil with a 25% stake.