Solo Oil and Aminex oil explorers have professed that the Kiliwani North-1 gas well in Tanzania will yield more gas than originally expected. The groups said the well, which was tested with a flow rate of 40Mmscf/d, was anticipated to deliver an initial production rate of approximately 20 Mmscf/d, nevertheless new estimates indicates that it will have a sustained daily output of 30 Mmscf.

"A gas sales agreement is near completion, but the operator awaits the finalization of payment protection clauses and guarantees prior to final signature," Aminex told Sharecast news. "The signing of the Kiliwani North Gas Sales Agreement, expected in the near future, should also assist the acceleration of the Company's other activities, particularly appraisal drilling at Ntorya," said Aminex group chief executive Jay Bhattacherjee. He further added that: "The board believes that the steps we are taking will be significant for the growth of the Company and underline its strategy to focus on key assets in Tanzania, ever seeking new production and development opportunities."

There is a possibility that Solo can boost its stake in the Kiiwani project to 13% once the gas sales agreement has been signed and Aminex said it would use the $3.5m to reduce its debt. Aminex, which owns a 58.5% stake in the project, and Solo, which has a 6.5% interest, said the well was "ready to produce" and the gas will be pumped into a newly-built pipeline,

In the meantime, the two groups are expected to drill the Ntorya-2 well at the Ruvuma project in Tanzania, in which Aminex holds a 75% stake to Solo's 25%, in the first quarter of 2016.