Acquisition of Canadian interests, update

RNS Number : 0519K

Solo Oil Plc

11 July 2011

 



Immediate Release, 7 am

11 July 2011

Solo Oil plc

('Solo' or 'the Company')

Acquisition of Canadian Interests, Update

Solo Oil plc is pleased to announce that it has now completed the first part of its acquisition of a 38.1% direct working interest in the Ausable Field and surrounding properties in South Western Ontario from Reef Resources Limited ("Reef").

As envisaged in the Heads of Agreement announced on the 24 May 2011 Solo has now completed the acquisition of a 23.8% working interest in the properties which contain the Ausable Field and other pinnacle reef prospects in SW Ontario.  The acquisition of the first tranche of the assets was concluded by the conversion of Solo's existing CDN$1.65 million participating loan, the payment of CDN$200,000 on signature of the Heads of Agreement and a further payment of CDN$650,000 at completion.

Solo is now working with Reef who, under the signed Heads of Agreement, are required to conclude an additional CDN$1.5 million of funding from a third-party in order to meet the required conditions for Solo providing a further CDN1.5 million against agreed work plans to acquire a further 14.3% interest. 

It is hoped that that this will be concluded shortly and Solo will increase its stake to the planned 38.1% level.  At that time Solo will have paid a total of CDN$4.0 million to acquire 38.1% interest at an aggregate rate of CDN$105,000 percent.

Reef has also reported that acid stimulation operations have commenced on the Ausable#5 well with a view to testing the production potential of the reservoir zone identified earlier in 2011.

Neil Ritson, Solo Executive Director, commented:

"The process we outlined in the Heads of Agreement in May is being completed smoothly and we hope to announce the results of the testing of the Ausable#5 well shortly."

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.

For further information:

Solo Oil plc David Lenigas Neil Ritson	[phone]
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish Felicity Geidt	[phone]
Shore Capital Joint Broker Pascal Keane Jerry Keen	[phone]
Pelham Bell Pottinger Financial Public Relations Mark Antelme Henry Lerwill	[phone]

 

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