LONDON (Alliance News) - Solo Oil PLC Monday reported a narrowed loss for the first-half of 2014, as it continues to seek further investment opportunities.
Solo reported a pretax loss of GBP407,000 for the six months ended June 30, compared with a GBP425,000 loss in the first-half of 2013. The company does not currently earn any revenue.
The loss is made up of the company's administrative expenses, which increased to GBP431,000 in the first-half of 2014, from GBP425,000 in the comparable period in 2013. However, it also booked GBP24,000 in finance revenue in the first half of this year.
"Solo continues to grow and diversify with the addition of a new area of investment in the UK and a significant advance in our investment already made in the onshore Ruvuma Basin in Tanzania," said Chairman David Lenigas.
The company has a holding in the Horse Hill development project based near Gatwick and its project in the Ruvuma Basin in Tanzania, alongside operations in Canada and West Africa.
The partners in the Ruvuma Petroleum Sharing Agreement are planning to drill two appraisal wells in 2015 in order to firm up the resource volumes and to commence gas sales negotiations to supply gas into the recently constructed 36-inch gas pipeline that runs through the Petroleum Sharing Agreement area from Mtwara to the Tanzanian capital Dar es Salaam. Commissioning of the new pipeline is expected to be completed by end 2014, said Solo.
"We look to realise the full potential of our investment in Ruvuma over the next few years as the discoveries made are commercialised," said the company.
Aminex PLC owns 75% of the Ruvuma license and is its operator, while Solo Oil PLC owns the remaining 25%.
In a separate statement, Solo said the Horse Hill-1 well, which it has a 10% interest in, has been drilled to the second casing point at a depth of 1,795 feet measured depth. It confirmed the well has encountered the expected mud gas up to C3 (propane) and mineral fluorescence just above current well depth.
Its partner in West Africa, Pan Minerals Ltd, is still seeking both financing and further opportunities in the area whilst no further developments have been made in regards to Solo's assets in Canada, it said.
"The company is also continuing to seek further investment opportunities, with several new opportunities currently being evaluated," it added.
Solo Oils shares were down 5.8% to 0.900 pence per share Monday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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