Solo will use acquisitions to boost production to 5,000 barrels per day.
Stake in Ruvuma project in Tanzania up for sale
Company also holds a 13.8% interest in Helium One
Solo wants greater hands-on control in future and to be operator
How is it doing
Solo has already screened fifteen potential acquisitions across a number of geographies.
European gas assets and certain territories in North Africa or those with “benign jurisdictions and attractive pricing dynamics” are the targets.
Solo wants to put together the 5,000 barrels of oil equivalent per day portfolio within three years.
Kiliwani North - Solo has an 8.4% stake in the Kiliwani North field which, in 2016, gave the company its first production generated revenue.
After around 2 years of operation, Kiliwani’s single well has just gone through an upgrade programme and is yet to come back onstream.
In 2017, Kiliwani North yielded some 15 mmscfd of production and generated £600,000.
Ruvuma - Solo also owns 25% of Ruvuma, an expansive and high potential area in Tanzania that already hosts the Ntorya gas field development project.
Here, the asset development is set to be driven by The Zubair Corporation which is acquiring a 50% stake in stake Ruvuma via a farm-out transaction with current operator Aminex.
It will leave Aminex with 25% of the asset, the same as Solo.
Zubair plans to conduct a minimum work programme targeting a minimum gross rate of 40mln cubic feet of gas per day (MMcf/d) which amounts to 6,700 barrels equivalent.
It will also drill, complete and test a new well, Chikumbi-1 which will be a follow-up to the successful wells of at Ntorya.
The well will be located up-dip from both the Ntorya-1 and Ntorya-2 wells.
What the boss says: Alastair Ferguson, executive chairman
“The [Zubair/Aminex] transaction has galvanised Solo's confidence in its ability to divest its interest at a significant premium to the value currently assigned by the market, and the company's efforts to realise value from this core investment have intensified.
“Our interest in Ruvuma remains the jewel in our current crown, however the strategy to diversify the business in line with our strategic vision will ensure the company is not reliant on a binary divestment outcome, the timelines and value of which remain uncertain"
- Farm-out of Ruvuma is completed followed by exploration well at Chikumbi.
- New managing director, Ian Stalker, just appointed to Helium One
- Kiliwani North comes back onstream
- New team appointed from Gneiss Energy to lead acquisition strategy
- Board and management own 7.6% of Solo
Share Capital commented: “We maintain considerable confidence in Solo’s very ambitious strategy and (with our last published Risked NAV estimate standing at 3.5p/share) look forward to future newsflow, as the company pursues its objectives to build scale and provide important event-driven catalysts under its reinvigorated board.”