Solo Oil plc (LON:SOLO), the AIM investing company targeting attractive production and development opportunities within the European gas market, announced that in light of the unprecedented practical challenges presented by COVID-19, which have constrained outsourced finance functions and auditors, the Board has taken the decision to apply for a delay in release of its 2019 Audited Financial Statements. This request was made to both AIM Regulation (further to the guidance provided by it in Inside AIM on 26 March 2020) and Companies House with approval subsequently granted allowing the Company to extend the deadline to produce its 2019 Audited Financial Statements and Annual Report to before 30 September 2020. We will notify shareholders when these will be announced in due course.
As a result of the delay to issuing the 2019 Audited Financial Results, the Company also intends to delay the AGM, in line with new emergency legislation being proposed by the Department for Business, Energy and Industrial Strategy.
Proposed change of name
The Company announced on 9 October 2019 its intention to rebrand and change the Company name to Scirocco Energy plc to align with the new strategy to pursue low-cost producing and development gas opportunities in Europe. The Company has been through a comprehensive restructuring over the last 18 months, including a complete change in Board and Executive Management, and the exiting of a number of legacy investments, as it made progress towards delivering its new strategy.
Shareholders will be asked to approve the proposed name change at the Company’s 2020 AGM.
Funding and liquidity
Solo Oil plc is in a position of relative strength compared to certain peers in these unprecedented times. The Company has low fixed overhead costs and its projects are primarily focused on the development of large-scale onshore gas developments in Tanzania, with no direct exposure to the oil price and strong localised pricing for gas in the region.
The Company has sufficient cash to support its operations in its current state to the end of Q1 2021 and remains funded for its share of the firm budget for its Tanzanian operations, capital programme and strategy. The Company can report unaudited 2019 year-end cash of £1,063,872, nil debt and an outstanding receivable position of £1,259,768. Further, after prudent management of payables over the last six months, the Company currently has no outstanding major creditors outside of the normal course of running the business.