LONDON (Alliance News) - Solo Oil PLC Tuesday said its pretax loss widened in the first half of 2015 and said its investments in the Kiliwani North gas field in Tanzania and the Ruvuma production sharing agreement in Tanzania represent its most significant investments and are therefore priorities.
Solo Oil also said the much anticipated flowtest on the Horse Hill-1 well near Gatwick Airport in the UK will be flow tested before the end of 2015, which would add further value to its investments.
The oil and gas investment company reported a GBP1.1 million pretax loss in the first six months of 2015, widening from the GBP407,000 loss a year earlier.
Solo does not currently generate any revenue and the wider loss was caused by the GBP679,000 charge related to the provision for potential losses on its equity swap agreement with YA Global Master SPV Ltd signed back in 2014. A year earlier, Solo did not make any provision as the agreement had not be signed.
Solo has continued to advance its investments in Tanzania, the UK and Nigeria, whilst also reviewing other potential opportunities for investment elsewhere.
Commercialisation of the Kiliwani North gas field in Tanzania, in which it holds a 6.5% stake, remains a short-term focus with the gas sales agreement pending signature and physical gas now available to flow into the national pipeline network. Solo also has the option to acquire another 6.5% stake in the project.
Plans are in place for the appraisal of the Ntorya gas condensate discovery in the Ruvuma production sharing agreement, in which it holds a 25% stake.
Solo said the investment in Kiliwani and the Ruvuma production sharing agreement "represent the most significant investments" by the company and are therefore priorities.
In the UK, at the Horse Hill project, plans are being made for the flow test of the Horse Hill-1 oil discovery in the Weald Basin before the end of 2015. That is with a number of other London-listed companies.
Solo said the ongoing UK 14th Landward Licensing Round may also lead to additional opportunities in the UK.
"Current market conditions with a prolonged period of depressed commodity prices offers increased opportunities for selective and careful investment. The Company therefore continues to actively assess additional new investment opportunities in Africa and elsewhere and will make further investments in suitable ventures as and when it is considered appropriate," said Solo.
Solo also has other investments in West Africa, the Isle of Wight and Canada.
Solo shares were trading flat on Tuesday at 0.400 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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