Kerman & Co advises long-standing AIM-listed client, Solo Oil PLC, on its US$3.5 million acquisition of a 6.5% interest in Kiliwani North in Tanzania
February 3, 2015
Kerman & Co advised Solo Oil Plc, the AIM listed investment company, on its Asset Purchase Agreement with Aminex Plc for the first 6.5% interest in the Kiliwani North Development Licence at a total consideration of US$3,500,000. Solo was also granted the option to purchase an additional 6.5% interest on the same terms as the first 6.5% interest in the KNDL, during a period of 30 days after the Gas Sales Agreement has been approved by the Tanzanian Authorities. Independently verified resources at Kiliwani North are estimated to be 45 billion cubic feet of gas-in-place.
Aminex and Solo are already partners in the Ruvuma Production Sharing contract in Tanzania, with respectively 75% and 25% interests, where gas was discovered in 2012.
Neil Ritson, Solo’s Chairman, commented: “Our first gas revenue from Tanzania moves a step closer with the acquisition of the initial tranche of Kiliwani North as agreed last year. The imminent signature of the gas sales agreement and the completion of the hook-up of KN-1 to the Songo Songo gas processing plant will make this a reality in the next few months.”
Kerman & Co’s Natural Resources team advised Solo Oil PLC on the transaction.