Solo Oil (SOLO.LN) Massive Discovery at Ruvuma PSA Tanzania Now Conformed via Independent Consultants

Tanzania: Solo Oil announces independent evaluation of the hydrocarbon potential of the Ruvuma PSA

02 Jul 2012

Ruvuma PSA (Source: Aminex)

Solo Oil has announced the results of an independent technical evaluation of the resource potential of the Ruvuma Basin onshore in southern Tanzania. The independent evaluation indicates 5.75 TCF potential. A technical evaluation of the Ruvuma PSA (operated by Aminex) has been prepared by ISIS Petroleum Consultants (ISIS) in Perth, Australia in which ISIS have attributed a total mean unrisked gas-initially-in-place (GIIP) for identified leads, prospects and discoveries of 5.75 trillion cubic feet (tcf).

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

This is the first independent evaluation of the hydrocarbon potential of the Ruvuma PSA and the results serve to highlight the outstanding potential of this under-explored onshore and near-shore portion of the Ruvuma Basin, a basin which has recently been highly successful in the deepwater offshore in both Tanzania and Mozambique.

On 27 June 2012, Solo announced the results of flow testing of the Ntorya-1 discovery well with a final flow of 20.1 million standard cubic feet per day of gas and an estimated 140 barrels per day of condensate from good quality Lower Cretaceous sands.  Based on the reservoir data from the well combined with seismic mapping, ISIS has calculated a mean discovered GIIP of 178 bcf, with a P10 upside of 284 bcf at Ntorya.  Taking into account up-dip potential for the Ntorya Prospect defined by ISIS on seismic mapping, a further undiscovered mean GIIP of 990 bcf is estimated.  The Ntorya sands are interpreted from seismic to be part of a marine channel fill sequence.

Further up-dip to the west of Ntorya, a separate channel fill complex, the Namisange Lead, has been identified from seismic, with a potential unrisked undiscovered mean GIIP of 2.62 tcf.  A seismic infill programme is planned for later in 2012 to better image the Ntorya area together with the Namisange Lead. Appraisal drilling is expected to follow the completion of the additional 2D seismic data.

To the north of Ntorya, in the area of the Likonde-1 well drilled in 2010, the mapping has identified remaining up-dip stratigraphic potential in the excellent Lower Tertiary sandstone reservoir penetrated in that well, with a mean unrisked undiscovered GIIP of 504 bcf. 

Further north and adjacent to the coast, the previously identified Sudi Lead has been re-mapped as a large Base Tertiary channel fill system with mean unrisked undiscovered GIIP of 436 bcf.  Both the Likonde Up-dip and Sudi Leads require additional seismic in order to mature as drillable prospects.  A number of additional leads have also been mapped in the onshore Ruvuma PSA, two to the west of Sudi and two on the eastern side of the block.

Although not yet quantified due to lack of seismic control, the ISIS report also recognises additional potential in the Karoo section, especially in the north of the Ruvuma PSA.  Traps present in the Karoo have potential for oil, demonstrated by the oil-prone nature of the Karoo section in the Lukeledi-1 well drilled nearby in 1992, and the shows in Likonde-1.

In addition to the onshore discovery, prospects and leads, re-mapping of the offshore portion of the Ruvuma PSA (approx. 20% by area) has highlighted a major channel fill complex, named Kiswa, at the Base Tertiary Unconformity level to which ISIS have attributed unrisked undiscovered mean GIIP of 709 bcf. 

It is now intended to carry out a further 2D seismic acquisition programme in order to appraise the Ntorya-1 discovery and to upgrade the highest potential leads to drillable status.  A minimum of two further exploration wells are planned for the Ruvuma PSA in the current exploration phase.  Additional data will be targeted at refining the resource estimates and preparing for the next phase of drilling within the PSA.

Participants in the Ruvuma PSA are:  Ndovu Resources (Aminex) 75% (operator) and Solo Oil 25%.

Neil Ritson, Solo Executive Director, commented;

'The existence of identified discoveries, leads and prospects with mean potential of 5.75 tcf and a further significant potential for oil underlines the enormous potential of the Ruvuma PSA.  When taken together with the vast reserves discovered to date offshore and the favourable operating cost environment of the onshore this represents a very valuable resource.  Existing nearby infrastructure and the planned Mtwara to Dar es Salaam pipeline further enhance the commercial value of this acreage.

On the basis of the recent gas flow test results at Ntorya-1 and the over 1 tcf potential at Ntorya and the other prospects reported by ISIS; Solo will now be actively seeking an additional partner to participate in the next phase of exploration and development in the PSA.  This is a very exciting time for Solo and we expect to have further positive news through the summer.'

Atlantic Coal ATC.LN Heads For Record Production and Sales

Atlantic Coal plc, the AIM listed open cast coal production and processing company with activities in Pennsylvania, USA, held its Annual General Meeting earlier today, at which all of the resolutions proposed were duly passed.  At the meeting, Atlantic's Managing Director, Steve Best, made the following statement:  "We continue to make excellent progress at Stockton, where we successfully completed the diversion of the railroad to allow the working of over approximately 1.0 million tons of coal of previously unworkable reserves.  With this complete, and the introduction of new machinery (including a Komatsu PC2000 Hydraulic Excavator and a Reichdrill blasthole drill rig) our production profile, efficiencies and strip ratio have been affected positively and I am delighted to report that we are on track to produce approximately 17,000 tons of coal during June.  We anticipate that this improved production level will continue going forward and expect that this will in turn make a positive revenue contribution.  Additionally, we have experienced record daily production highs in June with up to 1,000 tons produced in a day. "At the same as looking to increase our production at Stockton, our presence in the Pennsylvanian anthracite field ideally positions us for growth and regional expansion is at the forefront of our strategy.  With this in mind, as previously announced, we have acquired options over two new sites which we believe have the potential to transform our production profile.  Due diligence at both sites continues and the Company has recently extended its lease option over the 410 acre Pott & Bannon site (announced on 3 January 2012) for a further three months.  I look forward to updating shareholders later this year. "I am confident that the current year will be a positive one for the Company during which we hope to see the benefit from our position in the US market, including through our OTC QX listing, to build Atlantic's value and prospects."

Strategic Minerals SML.LN Rail Head Joint to Cobre signals the start of large scale shipping and earnings

RNS Number : 0200G
Strategic Minerals PLC
25 June 2012



For immediate release: 0700hrs 25 June 2012

Strategic Minerals Plc
("Strategic Minerals" or the "Company")

Completion of rail upgrade at its Cobre mine in New Mexico

Strategic Minerals Plc (AIM: SML; USOTC: SMCDY) today announces that the rehabilitation and upgrade of the rail link to its magnetite deposit at the Cobre Mine in New Mexico is now complete, which will enable the commencement of rail shipments of its magnetite iron ore to begin. It is anticipated that shipment of commercial quantities of ore will start over the next 90 days. At full capacity the rail facility will be able to handle over 50,000 dry metric tonnes per month.

Paul Harrison, CEO of Strategic Minerals, said:
"We are delighted that this milestone in the development of the Cobre mine has now been completed. It will allow us to accelerate the supply of our high quality magnetite ore to commercial customers and build up our revenues significantly. To date we have only been able to truck haul a limited amount of product from the mine site to US domestic customers."

About Strategic Minerals
Strategic Minerals PLC (AIM: SML; USOTC: SMCDY) is developing a portfolio of projects that provide near term production and revenues along with exploration assets that offer significant potential in the longer term. Strategic Minerals currently holds iron ore stockpile assets in North America and exploration properties in Australia. The Company has commenced production at its first magnetite operation, the Cobre stockpile in New Mexico and intends to develop a number of other projects within the same segment.

www.strategicminerals.net

Vatukoula Gold CEO Dave Paxton Share Purchase Signals VGM Turnaround

Vatukoula Gold Mines plc notes that on 22 June 2012 David Karl Paxton, CEO acquired 50,000 at 27 pence per share. David Karl Paxton now holds 225,000 ordinary shares, 0.19% of the issued share capital

The transition into mining more ore body via footwall method should start to feed into VGM figures over the next quarter following the exogenous shock of the recent flooding which skewed VGM figures during the last quarter. The quarter preceding the flooding showed VGM making some great progress on the mining front
At 27 p VGM shares are clearly cheap!!!!

TAIA Lion Resources Dedicated to Delivering Near Term Low Cost Production

TAIA Lion Resources, Sierra Leone's leading gold exploration and development company, will work to secure fast track production and regional economic development, by processing it's gold ore body through an initial gravity feed cyclone recovery system.

Commenting CEO Ari Untracht said, "TAIA Lion Resources was set up to be in the gold business and to deliver economic returns to shareholders and stakeholders as fast as possible. Our strategy has always been to enter production as soon as possible and we are confident we can initially deploy a low cost gravity feed cyclone recovery system to help process our Gori Hills or Lake Sonfon ore bodies. This will enable TAIA to swiftly move into the the production and earning phase, albeit limited. Our company was set up to produce and if we can deliver small scale micro production of gold and begin our economic generation process early and build it up over time, I am convinced, in today's market,that is what both our shareholders and stakeholders want and importantly what the market will respect. All too often the mining industry takes an age to move from exploration to production. At TAIA we are in the mining business to generate money and we want to do that quickly and we make no excuses for that"

To enter large scale production TAIA still benefits from a low capex exposure of circa 70 million USD, a figure that is relatively easy to secure via standard project finance terms.
TAIA's plan to enter near term low cost low output production is the right approach and demonstrates that the board clearly places an emphasis on business generation, rather than market generation.
We like TAIA's approach.

Brazilian Gold Corp BGC.TSXV Share Price Heads Upwards as Production Phase is in Sight

Check out Brazilian Gold Corp BGC. TSX.V Now entering an exciting transition phase from exploration and entering into limited production and earnings
Well done the BGC Team, dedicated, hard working, focused and always working to deliver production and cash generation, you are nearly there.

Brazilian Gold Corp BGC.TXV Heads Towards Production

Fantastic interview with Brazilian Gold CEO Ian Stalker, who is doing all the right things with shareholders and investors money in Brazil, where the company can now see the production phase on the horizon
Check this out


Brazilian Gold Corp. Looking To Produce in 2013 - Got Gold Report
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