Solo Oil Plc (LON:SOLO), the natural resources investment company focused on acquiring and developing a diverse global non-operated portfolio of strategic oil and gas assets, today confirmed the completion of the acquisition of an additional 5% interest in Horse Hill Developments Limited (“HHDL”) as previously announced on 27 February 2018.
The conditions precedent to the Sale and Purchase Agreement (“SPA”) have now been fulfilled, including the consent of other shareholders and the payment by Solo of the cash consideration of £650,000. The Company will now issue 9,973,011 ordinary shares of 0.2p in fulfilment of the share consideration to Primorus Investments plc (“Primorus”) based on the 10-day VWAP as provided for in the SPA. The shares will be admitted for trading on or around the 15 March and under the terms of the SPA Primorus will not trade in Solo shares for a period of at least 45-days from completion.
Testing at the Horse Hill-1 oil discovery is expected to commence in early second quarter and is anticipated to lead to a declaration of commerciality at the Portland Sandstone reservoir level where initial testing in 2016 showed a potentially commercial rate of 320 barrels oil per day (“bopd”) on pump. Additional testing of the Kimmeridge Limestone reservoirs will be undertaken in a test program expected to last approximately 150 days in total.
Solo will now hold a 15% interest in HHDL equivalent to a 9.75% interest in the Horse Hill licences, PEDL137 and PEDL246, and the Horse Hill oil discovery.
Neil Ritson, Solo Oil Plc Executive Chairman, commented: “With testing due to commence shortly at Horse Hill we are pleased to have increased our interest in this exciting opportunity and look forward to more news as operations get underway later this month.”
Total Voting Rights
Following Admission, the Company will have 459,453,669 Ordinary Shares in issue with voting rights. The Company does not hold any Ordinary Shares in treasury and accordingly there are no voting rights in respect of any treasury shares. The aforementioned figure of 459,453,669 Ordinary Shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company, under the disclosure requirements applicable to the Company.