“The board would like to sincerely thank Mr. Morzaria for his valuable contribution to the company over the past few years,” Solo said in a brief statement this morning.
In its latest operational update released three weeks ago, Solo said good progress was being made with the critical elements of the Ausable enhanced oil recovery project in Ontario and added that lifting production depended on a number of technical modifications at the field.
These modifications are currently being carried out by Solo’s partner Reef Resources, and its work has run into a couple of delays. However, Reef remains upbeat about the project.
Reef said it will be able to start gas injection operations once the gas flow is reversed and it has made a number of modifications to facilities.
Elsewhere, drilling continues on another gas well, this time at the North Airport site. It is currently at a depth of 280 metres and it will be drilled down to a total depth of 608 metres.
Solo has a 38.1 per cent stake in the Ausable Reef venture, as a result of a loan it made to Reef in April 2010.
The well was deepened after it initially missed its primary pre-drill target. However, it did encounter gas deeper in the well.
Old Park Lane analyst Barney Gray said this month that Solo is significantly undervalued, while placing a ‘buy’ recommendation on the stock with a target price of 1.5 pence.
He said Solo has the potential for continued positive news flow over the next three months.
“Solo Oil possesses a highly prospective exploration play in Tanzania and a significant interest in a longer term development opportunity in Ontario, Canada,” he said in a note to clients.
“The company recently participated in an exciting gas discovery in the Ruvuma Basin in Tanzania and drilling is continuing in order to probe a deeper oil target.”
Shares in Solo traded at 0.62 pence this morning, up 1.6 percent from Friday’s close.