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Market: AIM
Sector: Oil & Gas Exploration & Production
EPIC: SOLO
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Solo Oil
www.solooil.co.uk

Solo Oil plans to acquire a diverse portfolio of direct and indirect interests in exploration, development and production oil and gas assets which are based in the Americas, Europe or Africa. Both on-shore and off-shore interests will be considered. The intention is to acquire a widely distributed mix of oil and gas development and production assets.

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Solo Oil secures up to £10 million through equity line facility

10th Nov 2011, 10:31 am by Giles Gwinnett

Explorer Solo Oil (LON:SOLO) has secured up to £10 million through an equity line facility with investment manager Dutchess Capital, the firm revealed today.

The facility with Dutchess Opportunity Cayman Fund Ltd offers Solo ongoing access to capital at any time during the next three years.

It was arranged by First Columbus LLP - Dutchess' joint venture partner in the UK.

The funds will be obtained by way of subscription for new shares in Solo Oil priced at a 5 per cent discount to the market price.

They may be drawn down in tranches and Solo is able to specify a minimum acceptable price for each tranche to prevent shares being sold in the market at an unacceptable discount.

So far, the company has not drawn down on the facility.

Dutchess Capital was founded in 2000 and has transacted over $2 billion in equity line facility (ELF) commitments globally. It sources worldwide investment opportunities, with offices in Boston, New York, London, Seoul and Beijing.

Last month, Solo announced that its partner Reef Resources (CVE:REE) has achieved more than 100 barrels of oil per day from a single well at both companies Ausable Field joint venture in south western Ontario, Canada.

Solo reported Reef’s announcement that it had completed production testing at Ausable Well #1 using hydraulic venture downhole pump technology, and the computed average daily production rate during the test period was 103 barrels of oil per day.

Reef is now in the process of installing the permanent venture pumping equipment at the well, and it estimates that the stabilised long-term production rate for the well will be between 50 and 70 barrels of oil per day.

Meanwhile, the firm said it is confident that the production rates for three additional production wells will also achieve similar production levels upon installation of venture pumps.

It also reported that the Tanzanian government had given its approval for the assignment of an additional interest in the Ruvuma Basin production sharing agreement from Tullow Tanzania.

Solo now has an 18.75 per cent interest in the Lindi and Mtwara licences that jointly make up the Ruvuma PSA, which is located onshore Tanzania.

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