Share Acquisition in West Africa

RNS Number : 1984F

Solo Oil Plc

21 May 2013

 



For Immediate Release

 21 May 2013

Solo Oil plc

('Solo' or 'the Company')

Share Acquisition in West Africa

Solo today confirms that it has signed a definitive Share Purchase Agreement ("SPA") with Swiss based Pan Minerals & Oil AG ("Pan Minerals") as previously announced on 9 May 2013 to acquire a 15% shareholding in Pan Minerals. 

Solo's aggregate consideration of £500,000 will be made up of £200,000 in cash and 60 million new ordinary Solo shares of 0.01p each as previously announced.

Solo retains a 90 day option for a first right of refusal ("FROR") to participate in any future equity financing of Pan Minerals for the development of its West African oil production opportunities. The FROR will allow Solo, at its sole discretion, to increase its direct equity interest in Pan Minerals from 15% to up to 49.9%.

The purpose of this investment is to assist Pan Minerals to conclude existing production agreements that it has negotiated onshore in West Africa.  Pan Minerals is a Special Purpose Vehicle company that focuses on proven reserve situations which have the potential to be brought on production at over 2,000 bopd within a twelve month period.

An application will now be made to admit the additional shares for trading on AiM which is anticipated on 28 May 2013.

Neil Ritson, Solo's CEO, commented:

"We have now successfully concluded negotiations with Pan Minerals to convert the previous MOU to a definitive Share Purchase Agreement, and we now look forward to working closely with Pan Minerals to ensure that their West African ventures can be brought quickly to fruition.  Our recent capital raising will support this further by giving us the opportunity to increase our stake in what is a very exciting opportunity to access early production revenue in a well understood oil field."

Competent Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Solo Oil Plc who has 35 years of relevant experience in the oil industry.  Mr Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.

For further information:

Solo Oil plc David Lenigas Neil Ritson	[phone]
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish	[phone]
Old Park Lane Capital Plc Joint Broker Michael Parnes Shore Capital Joint Broker Pascal Keane Jerry Keen (Corporate Broker) Pelham Bell Pottinger                            Public Relations Mark Antelme  Henry Lerwill	[phone] [phone] [phone]

 

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