Solo Oil PLC (LON:SOLO) has raised £2mln by placing shares at 0.5p a pop.
The company has issued 400mln new shares, representing around 5.7% of the issued share capital of Solo.
Funds from the placing will be used to pay for the company’s share of the well testing programme, soon to kick off, for the recently drilled Ntorya-2 appraisal in Tanzania, plus the analysis of future developments for the Ntorya discovery, which is operated by Aminex plc (LON:AEX).
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Solo holds a 25% working interest in the Ruvuma Petroleum Sharing Agreement and in the Ntorya gas and condensate discovery.
"The company is looking forward to the flow test results from the Ntorya-2 gas discovery in the coming weeks. Following the flow testing the joint venture partners will define the forward development programme for the Ntorya discovery and are expecting to apply for a 25-year development licence," said Neil Ritson, non-executive chairman of Solo.