Issue of Equity

RNS Number : 4273U

Solo Oil Plc

07 April 2016

 

For Immediate Release, Embargoed until 7 am

7 April 2016

Solo Oil plc

('Solo' or 'the Company')

Placement of Equity and TVR

Solo Oil plc today announces that it has raised £800,000 gross proceeds through the issue of 320,000,000 new ordinary shares of 0.01 pence each in the Company ("Placing Shares") at a price of 0.25 pence per share (the "Placing") in a Company sponsored placement.

The proceeds from the Placing will be deployed in the Company's active investments in Tanzania and will allow the Company to accelerate its ownership of the additional interest in the now producing Kiliwani North Field, in particular the acquisition of the Second Tranche payment as announced on 4 April 2016. This will take Solo's working interest in the Kiliwani North Development Licence to 8.425%.

Neil Ritson, Solo's Chairman, commented:

"With the Kiliwani North-1 well now flowing gas into the Songo Songo gas processing plant this is an ideal time for Solo to accelerate its ownership of the project and participate in the growth of revenues from gas sales. This is a very exciting time for the Company as we reach first material production and revenue."

The final payment of the intended acquisition at Kiliwani North, taking the Company's ownership to 10%, will be completed when the commissioning phase ends and gas production is managed under the long-term take-or-pay provisions of the Gas Sales Agreement with the Tanzanian Petroleum Development Corporation.  Net revenue from the Kiliwani North Development Licence, which commenced gas production earlier this week, is expected to ramp up to US$2 - 2.5 million per annum net to Solo's interests following the commissioning phase which is anticipated to last from 90 to 100 days.

Application will be made for the Placing Shares, which will rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM. Dealings in the Placing Shares on AIM are expected to commence on or before 16 April 2016.

Following Admission, the Company's issued share capital will consist of 5,836,830,571 Ordinary Shares with a nominal value of 0.01 pence each, with voting rights ("Ordinary Shares"), and 265,324,634 deferred shares of 0.69 pence each. The deferred shares are non-voting, are not admitted to trading on AIM and are not entitled to any participation in the profits or the assets of the Company. The Company does not hold any Ordinary Shares in Treasury. Therefore the total number of Ordinary Shares in the Company with voting rights is 5,836,830,571.

The above figure of 5,836,830,571 Ordinary Shares may be used by shareholders in the Company 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 share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

For further information:

Solo Oil plc Neil Ritson Fergus Jenkins	[phone]
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish	[phone]
Shore Capital Joint Broker Jerry Keen (Corporate Broker) Bell Pottinger                            Public Relations Henry Lerwill Cassiopeia Services LLP Investor Relations Stefania Barbaglio	[phone] [phone] [phone]

 

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