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.
Solo Oil draws down £750,000 from Dutchess Capital equity line
Solo Oil (LON:SOLO) has raised more funds for its plans to increase oil production in Canada and develop the Mina El Carmen block in Argentina.
This morning, the company told investors that it has drawn down a further £750,000 from its three year £10 million equity line facility with Dutchess Opportunity Cayman Fund.
This is the AIM quoted explorer’s second drawdown from the facility, which was secured in November last year, taking the total amount of funds raised via the facility to £1.1 million.
The drawdown came only a week after Solo’s joint venture partner Reef Resources (CVE:REE) reported significant progress on the companies’ Canadian operations.
Notably, Reef revealed that a new assessment of the field’s oil-in-place had been completed following detailed petrophysical analysis alongside 3D seismic data.
The field is now estimated to contain 8.9 million barrels of oil, 10 per cent more than previous estimates.
The funds draw down today will also enable Solo to meet further potential cash commitments or Tanzania depending on the results of the Ntorya-1 well, which is approaching its target interval.
Solo holds an 18.75 percent stake in the well, which was expected to reach its target depth by the end of January. It has been estimated that the well, which has a 20 percent chance of success, could make a discovery of 100 million barrels of recoverable oil resources.
It is testing an area within the Rovuma basin, which is host to several large gas discoveries offshore in deep waters.
Pursuant to the drawdown, Solo has issued 59.3 million shares at a price of 0.65 pence per share. The price of the issued shares represents a five percent discount to the current market price, which is in line with the terms of the agreement.
