Source - SMW
Solo Oil said an exploration licence at the Ruvuma joint venture had been formally extended by Tanzanian authorities, though a further extension was likely needed.

During the year commencing 17 April, the JV would acquire 3D seismic and drill the Chikumbi-1 exploration well, among other key terms of the approval.

Solo Oil owns 25% of the venture, which is operated by Ndovu Resources.

'It is acknowledged by all parties that the full work programme is unlikely to be completed during this extension period and Solo understands that the operator will therefore apply for an additional extension(s) as necessary,' Solo Oil said.

'In the meantime, the company, with its JV partners, will continue to prepare for this work programme.'

'The operator has previously announced an estimate of $40m for the work programme, which would imply an expenditure amount $10m for Solo's 25% interest over the work programme period, which will extend into 2021.'

'The JV partners are evaluating the cost of the work programme in light of current market conditions and expect the near-term programme to be delivered at significant savings to previous estimates.'

'The company further notes that the operator has already performed many pre-drilling and pre-seismic technical planning and contractual acquisition activities.'

At 9:20am: (LON:SOLO) Solo Oil PLC share price was +0.23p at 1p

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