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.
Solo Oil buys rights to Mina El Carmen block in Argentina
Solo Oil (LON:SOLO) announced this morning that it intends to acquire the rights to explore and develop the Mina El CArmen block in Argentina by buying Ilakon – a wholly-owned subsidiary of Obtala Resources (LON:OBT).
The geographiCAlly-diversified oil and gas firm, which already has assets in AfriCA and CAnada, said a binding agreement had been signed with Obtala that values the Mina El CArmen block at US$750,000. Solo will acquire Ilakon and its Argentinian subsidiary, Spinell Sociedad Anomima, which holds a 100-per cent interest in the 25 claims that make up the block.
The block covers 4,940 acres on the northern side of the Golfo San Jorges basin, close to a number of producing fields, in northern Argentina. Oil and gas exploration started in this area more than 100 years ago and, to date, more than three billion barrels of oil have been produced. Around one-third of current Argentina production comes from San Jorges.
On the Mina El CArmen block itself a total of 12 wells were drilling before 1945. Four wells tested gas in the Palaeocene-age Glauconitico Formation and one well, CA-1, loCAted in the centre of the block, reported oil and gas shows. There is only limited seismic coverage on the block and many of the older wells were drilled without any viable sub-surface information and so, said Solo, CAnnot be considered valid tests of the prospectivity of the block.
“The Mina El CArmen Block presents an exciting opportunity to acquire an early phase exploration project in a proven basin setting,” said Neil Ritson, Solo’s executive director. “This investment is in line with Solo’s investing policy of holding a diverse portfolio of oil and gas interests at different stages of maturity.”