Solo Oil PLC (LON:SOLO) has had its share price target tweaked upwards by Shore Capital following the appraisal drill result at the Ntorya prospect in Tanzania.
It follows a similarly bullish assessment of Solo’s partner Aminex (LON:AEX) last week from the broker.
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The Ntorya-2 result has increased discovery size and de-risked additional prospectivity, said Shore.
Meanwhile, the 10% stake (possibly rising to 20%) stake in Tanzania-based Helium One interest represents a highly accretive and complementary acquisition.
Issues over the flow rate are not materially detrimental according to the broker and the current valuer offers an attractive entry point in anticipation of further drilling, development licence award and finalisation of early production plans at the successfully de-risked Ntorya discovery.
Including Helium One’s Rukwa project; the risked NAV (net asset value) estimate is upgraded to 0.9p/share (from 0.8p/share previously) or nearly three time the current market price of 0.35, up 5% today.