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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...Read more
Solo Oil expects latest Ausable Reef well completion early AprilMarch 30 2012, 8:54am
Solo Oil (LON:SOLO) said the latest well being drilled on the Ausable project in Ontario is expected to be completed in early April, and at the Ntorya-1 well in Tanzania is currently having liner installed prior to further deepening.
The operational details were included in Solo’s interim results report for the period to December 31 2011, which showed a pretax loss of £486,000 compared with a loss of £219,000 a year earlier.
On the Ausable enhanced oil recovery project, Solo partner Reef Resources began drilling a new exploration well earlier this year, Airport North-1, to look for additional gas to supply to Ausable.
That well is presently drilling ahead at 576 metres after the setting of intermediate casing and drilling to a total depth of 610 metres is expected to be completed in early April.
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 Ntorya-1 lies in the onshore portion of the Ruvuma Petroleum Sharing Agreement (PSA) in south-east Tanzania, and Solo has a 25 per cent interest in the discovery. Operator Aminex (LON:AEX) holds the remainder.
At the time of reporting a liner is being completed prior to further deepening of the well to a further potentially oil prone target at 3,000 metres. The well will be flow tested as a gas discovery at 2,600 metres once suitable equipment can be mobilised, Solo said.
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.”