Update Pan Minerals Acquisition

RNS Number : 0757M

Solo Oil Plc

20 August 2013

 

For Immediate Release

 20 August 2013

Solo Oil plc

('Solo' or 'the Company')

Update Pan Minerals Acquisition, West Africa

Solo today announces that it has agreed a 30 day extension to the first right of refusal ("FROR") to participate in any future equity financing of Pan Minerals in the development of its West African oil production opportunities. 

A Share Purchase Agreement ("SPA") with Swiss based Pan Minerals & Oil AG ("Pan Minerals") was announced on 9 May 2013 and 21 May 2013 in which Solo acquired a 15% shareholding in Pan Minerals.  The FROR which was a part of the SPA allows Solo, at its sole discretion, to increase its direct equity interest in Pan Minerals from 15% to up to 49.9%. The FROR has now been extended from 90 to 120 days.

The purpose of the 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.

The current term of the FROR will expire on 18 September 2013.

Neil Ritson, Solo's CEO, commented:

"We have been regularly updated on the Pan Minerals financing process and in view of the progress being made Solo's first right has been extended by mutual agreement.  We hope to get access to definitive terms shortly and will update the market accordingly. The underlying reason for the investment in Pan Minerals is an exciting oilfield development in West Africa and we continue to look for ways to enhance Solo's exposure to that opportunity."

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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