(Alliance News) - Solo Oil PLC on Tuesday said it has agreed to forego some of the deposit put down for its cancelled acquisition of assets in the North Sea.
Solo last week said it had been unable to agree revised terms for the purchase of natural gas fields from ONE-Dyas BV. It had envisaged paying EUR30.1 million upfront plus EUR2.0 million deferred, but in December decided to renegotiate terms.
This was due to issues such as a fall in European gas prices, increased expenditure forecasts at the assets, and weak equity markets.
Solo put down a EUR1 million deposit as part of the acquisition. It has now agreed to contribute EUR230,000 to ONE-Dyas's costs related to the cancelled deal. Solo has already received back half of the deposit, with the remaining EUR270,000 due by the end of this week.
"The board is confident that the company has sufficient cash resources to meet current firm budgeted commitments within its existing portfolio of assets in Tanzania, and to cover general working capital needs for the remainder of 2020," said Solo.
Shares were 9.3% higher on Tuesday afternoon in London at 0.82 pence each. They slumped following the cancellation of the acquisition, having been nearly 2.50p last October. They have been suspended since then as the acquisition was deemed a reverse takeover.
By George Collard; georgecollard@alliancenews.com
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