Completion of Horse Hill Acquisition and TVR

RNS Number : 1981H

Solo Oil Plc

09 March 2018

 

FOR IMMEDIATE RELEASE            ; Embargoed until 7 am                                          9 March 2018

SOLO OIL PLC

("Solo" or the "Company")

Completion of Horse Hill Acquisition

and TVR

Solo (AIM: SOLO), the natural resources investment company focused on acquiring and developing a diverse global non-operated portfolio of strategic oil and gas assets, today confirms the completion of the acquisition of an additional 5% interest in Horse Hill Developments Limited ("HHDL") as previously announced on 27 February 2018.

The conditions precedent to the Sale and Purchase Agreement ("SPA") have now been fulfilled, including the consent of other shareholders and the payment by Solo of the cash consideration of £650,000. The Company will now issue 9,973,011 ordinary shares of 0.2p in fulfilment of the share consideration to Primorus Investments plc ("Primorus") based on the 10-day VWAP as provided for in the SPA.  The shares will be admitted for trading on or around the 15 March and under the terms of the SPA Primorus will not trade in Solo shares for a period of at least 45-days from completion.

Testing at the Horse Hill-1 oil discovery is expected to commence in early second quarter and is anticipated to lead to a declaration of commerciality at the Portland Sandstone reservoir level where initial testing in 2016 showed a potentially commercial rate of 320 barrels oil per day ("bopd") on pump.  Additional testing of the Kimmeridge Limestone reservoirs will be undertaken in a test program expected to last approximately 150 days in total.

Solo will now hold a 15% interest in HHDL equivalent to a 9.75% interest in the Horse Hill licences, PEDL137 and PEDL246, and the Horse Hill oil discovery.

Neil Ritson, Solo's Executive Chairman, commented;

"With testing due to commence shortly at Horse Hill we are pleased to have increased our interest in this exciting opportunity and look forward to more news as operations get underway later this month."

Total Voting Rights

Following Admission, the Company will have 459,453,669 Ordinary Shares in issue with voting rights. The Company does not hold any Ordinary Shares in treasury and accordingly there are no voting rights in respect of any treasury shares.  The aforementioned figure of 459,453,669 Ordinary Shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company, under the disclosure requirements applicable to the Company.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Qualified Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chairman and Director of Solo Oil plc who has over 40 years of relevant experience in the energy sector. Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and a Fellow of the Geological Society of London.

For further information:

Solo Oil plc Neil Ritson / Dan Maling	[phone]
Beaumont Cornish Limited Nominated Adviser Roland Cornish	[phone]
Shore Capital Broker Jerry Keen Buchanan (PR) Ben Romney / Chris Judd / Henry Wilson	[phone] [phone]

Notes to Editors:

Solo Oil plc (Solo), is a natural resources investment company with a diverse portfolio of onshore assets, principally in Europe and Africa. The company seeks to deliver returns through early stage investment in promising projects and uses management's own sector expertise to assist in strategic asset development. Solo's portfolio currently includes extensive interests in the prolific Ruvuma Basin in Tanzania, the Horse Hill oil discovery in the Weald Basin, Helium One Limited, the Tanzanian helium exploration company, and Kiliwani North, a natural gas producing project in Tanzania.   

Glossary:

bopd	barrels of oil per day
discovery	a petroleum accumulation for which one or several exploratory wells have established through testing, sampling and/or logging the existence of a significant quantity of potentially moveable hydrocarbons
limestone	a sedimentary rock predominantly composed of calcite (a crystalline mineral form of calcium carbonate) of organic, chemical or detrital origin. Minor amounts of dolomite, chert and clay are common in limestones. Chalk is a form of fine-grained limestone
PEDL	UK Petroleum Exploration and Development License
reservoir	a subsurface rock formation containing an individual natural accumulation of moveable petroleum
sandstone	a clastic sedimentary rock whose grains are predominantly sand-sized. The term is commonly used to describe consolidated sand or a rock made of predominantly quartz sand
VWAP	volume weighted average price

 

END

 

 

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