Solo Oil plc Completes Acquisition In West Africa
Solo is pleased to announce that it has signed a binding Memorandum of Understanding ("MOU") to acquire a 15% shareholding in Swiss based Pan Minerals & Oil AG ("Pan Minerals"). Solo will pay a cash consideration of £200,000 plus 60 million new ordinary Solo shares of 0.01p each representing a total aggregate consideration of £500,000.
The purpose of this investment is to assist Pan Minerals to consummate certain existing production agreements that it has negotiated onshore in West Africa. Pan Minerals is a Special Purpose Vehicle company that focuses on proven reserve situations which have the potential to be brought on production at over 2,000 bopd within a twelve month period.
In addition, Pan Minerals has granted Solo a 90 day option for a first right of refusal ("FROR") to participate in any future equity financing of Pan Minerals for the development of its West African oil production opportunities.
The FROR will allow Solo, at its sole discretion, to increase its direct equity interest in Pan Minerals from 15% to up to 49.9% subject always to any constraints Solo may have due to its investing policy as previously approved by shareholders.
Pan Minerals has invested nearly US$3mm to date in the pursuit of farm-ins on proven oil fields in West Africa and the Solo's investment will assist in the completion of these arrangements.
It is envisaged that the MOU will be converted to a full Sale and Purchase Agreement within a week and the Company will advise when the shares will be issued and admitted to AiM.
Neil Ritson, Solo's CEO, commented:
"The Solo Board is familiar with the proven on shore oil fields being sought by Pan Minerals and welcomes the opportunity to assist. For commercial reasons, the details of the opportunities must remain confidential at this stage".
Competent Person's Statement:
The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Solo Oil Plc who has 35 years of relevant experience in the oil industry. Mr Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.