Solo Oil

Thursday, 27th September 2018 09:25 - by Rajan Dhall

Solo Oil this morning released their Unaudited Interim Results for the six months ended 30 June 2018. The company continues to state the balance sheet is in good shape, they are in a transformational phase and they have taken significant strides towards its strategic goal.

Here are some of the key highlights:

·     Significant Resource Upgrade at Ntorya to gross 763 billion cubic feet ("bcf")

·     Acquisition of additional 5% interest in Horse Hill Developments Limited and equity placement of £2m

·     Commencement of flow testing operations at HH-1 with initial positive results from Portland Sandstone

·     Helium One completed $2m pre-IPO round, funded through to drilling expected in H1'19

·     Aminex farm-out provides commercial validation of Ruvuma

·     Disposal of interest in Horse Hill Developments Limited for £4.5m in UKOG shares

·     Equity placement of £2.4m in August in conjunction with an attaching Open Offer of £1.2m

·     Significantly strengthened balance sheet with zero debt - Riverfort arranged Convertible Loan fully repaid in August

You can see from the daily chart we have been stuck in a range between 2-3p for some time now. The market is clearly looking for a catalyst for a breakout and although the report is good today it may not be enough. Look out for a trendline breakout from the downward sloping trendline on the chart. If we see a break there that could indicate a move back up to 3p once again. In terms of resistance, other than the levels on the chart 2.50p looks like it could pose a problem.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.