Member Info for Early_Bird

*NT1 & NT2

Nice to have a little recap here. Lets not lose sight of the fundamentals/facts that underpin the company.

Ruvuma:

760bcf 2C Contingent Gross (130mmboe) discovered resource through two successful exploration & appraisal wells NT1 & NT1.

Ntorya-1 drilled in 2012, Ntorya-2 drilled in 2017 both successfully tested gas with flow rates of 20 MMscf/d (3400boepd) and 17 MMscf/d (2900boepd) respectively.
NT2 flow tests: "78% of the flow was coming from two metres on the upper part of the perforations...attributes this to the ineffectiveness of the clean-up of the well. The Operator expects a higher deliverability during development"

The next step is to drill Chikumbi-1 which is targeted for Q1/Q2 2019. Drill pad already constructed and rig tendering complete. All now awaiting final Licence and Aminex farm in then should move quickly as the rainy reason ends.

The primary target of Chikumbi-1 is a deeper Jurassic prospect but the well will appraise the Ntorya gas discovery and will be used as a producer. This well is targeting 1.3TCF P50 Prospective Gross (200mmboe).

SOLO hold a 25% stake in this project which equates to 30mmbol net 2C Contingent that flows 3000beopd and a further 50mmbol net prospective upside that C-1 is targeting and will be put in to production if a success.

The net cost of the C-1 drill to SOLO is £3.2m.

…………………………………………………………………………………………………………..

In addition….

SOLO are fully funded throughout all of 2019, have very low overheads (less than £500k pa)

Current Cash position is £5m with a further £2m in UKOG shares @current SP.

SOLO also have a £2.8m (13%) stake in Helium-one which is due to drill Q1 2019 and targeting to list in London around a similar time. Estimated production revenues from Helium-1 are between $150 to $600 million per year once in production with an estimated production target of 2020

Kiliwani North K1 remediation also in progress and currently flow testing. Based on previous flows could mean between $121,000 to $243,000 per month to SOLOs 8.3% stake.

Directors recently put in £260k at 2.25p and hold 10% of the company.

MCap £9m…..

Huge warchest of cash near 100% of the mcap now! Everything else in for free...

Next steps should be interesting

Giveaway.. LOL. For an asset that has nothing happening on it for over 14 months and was given 0 value by the market... its a cracking move...

You forget we hold UKOG shares and therefore can use an liquidity from this to benefit us!
V clever

So thats anothet £350k in the coffers taking cash eq to £7m now

PEDL 331 wasnt even mentioned in interims, wasnt going anywhere for well over 12months and SOLO have crystalized a 225% return on the original investment.

Soon going to have more cash than Mcap...!

SOLO have Jon Fitzpatrick as a director on the board and 4.5% shareholder. Jon being the MD and founder of gneiss energy, a company which source / review O&G deals. He advised RRE (Rockrose) on their latest Dyas deal. He has contacts. He invested £1m here (that is now worth £400k). Ill be interested to see if he has an influence here in due course...

People also forgetting C-1 net drill cost to SOLO is £3m.

There is still a £3.5m potential warchest there for acquisitions should directors decide Ruvuma isnt going anywhere soon whilst still protecting the option to self fund the C-1 drill.

They also have the option of farming out all of there Ruvuma for cash and then they could have a very large warchest of cash well in excess of the current MCap for other acquisitions.

Again these prices will not here here forever :) SOLO have options unlike Aminex - again another reason why I see this as a much much better safer investment.

I think everyone is scratching their heads at this current share price but equally sometimes a flush is good to speed up the process of getting “rid of the rot” so to speak. As soon as the rot has gone people then scramble to buy in… you either buy value and wait or you buy share price movement and live on a prayer.
The only two prices that matter are your buy price and sell price.

Why am I so confident here?

Well… bearing in mind £9.5m current MCap…

For any new investors SOLO has probable one of the strongest cash balances vs Mcap in AIM minnow arena.

£6.5million (Est break down £5m + £1.5m remaining ukog to be sold before YE).

So £6.5m warchest combined with Zero Debt and very lean running cost/overheads of circa £500k pa means SOLO placed to weather Brexit wobbles or indeed any wobble for the foreseeable future.

Management confirmed to investors at the SH gathering that they are fully funded throughout all of 2019 including all work commitments with their existing cash balance. So this includes being able to fund their share of C-1, the post drill seismic etc.. and they reiterated NO PLACINGS.

Management have big skin in the game here, over 10% of the company, they are aligned and all underwater like the rest of us now (they want traction in SP and its coming!).

The asset base is where the real value lies here. 25% stake in Ruvuma which equates to currently 30mmboe 2C Contingent resources (gas) net to SOLO. To put that in to context that’s more than all of Wick or Colter put together and these aren’t even contingent until a discovery!

C-1 spudding due likely Q2 2019 which is unlocking another 1.3TCF of gas and if a success will be put in to production.

Kiliwani North – Solo hold 8.3% stake. Currently undergoing remediation where we should find out by YE. Success here in line with previous production would yield 100boepd net to SOLOs 8% which would more than cover all overheads – food for thought.

Helium One – SOLO hold a 13% stake here, have sunk £2.5m of cash which is now valued at £2.8m from the last pre IPO funding round. Looking to list in London Q1 next year, they are due to be drilling Q1 2019.

Isle of Wight – SOLO hold 30% WI. A previous discovery which UKOG 65% WI (as operator) look to drill now in Q1 2020.

Downside from these levels I don’t see any. Obvious huge upside and its just a matter of when not if. Buy and lock them up tight.

Ive taken a small punt on aaaog but its chalk and cheese in terms of investment opportunity.

SOLO stake in Ruvuma is larger than if aaog were to hit all the layers including the Djeno. Solo is already 2 steps ahead with two very succesful apparaisal yet is a lot cheaper. Irrational but thats the opportunity.

Solo is fully funded also.

Due to list in London and drill H1 2019

6.5m in cash + UKOG shares

25% ruvuma in for free aminex that sized stake is valued at $20m

8.3% Kiliwani north which is being worked on currently and if successful will be producing net cash to solo.

30% IoW

£6.5m in cash.... £500k pa cash burn

I met directors a few weeks back and they will not be doing any placings in 2019

Amount of s*** being posted on this board by trolls is quite a spectacle.

People selling here are selling under cash + H1

Easy money

this just from fixing a valve.. still to perforate the larger deeper layer. So news on this to come..

This asset alone potential to cover all SOLO overheads.

Kiliwani gas flowing to surface. This is potential cashflow net to solo. An asset currently given 0 value by the market.

Fully funding through all 2019 including huge C1 drill catalyst, 3d, K1 remidation...

£6.5m in cash post ukog share sale vs £500k pa cash burn - very lean running costs

25% in Ruvuma which on licence ext and farm in is worth a few multiples of the current MCap alone given its 30mmboe 2C net to SOLO - thats huge! AEX farming out 50% for $40m... do the math

Helium one - £3m in equity here, will they liquidate it for cash prior to it listing? Would mean £10m in cash if so...

Kiliwnai North - re perforation due this Q and if successful will mean cashflow net to solo

To the Directors - Lets see some delivery now on the realisation for shareholders - you have the tools, cash balance, assets and team so lets start seeing you shout about this company. After all you keep saying your aim is to deliver value to shareholders - so far you have delivered -40% on the SP. !

Patience is a virtue...

new director is a replacement for Strang, so no more wages at all.

http://www.lse.co.uk/share-regulatory-news.asp?shareprice=SOLO&ArticleCode=53eteyt8&ArticleHeadline=Director_Appointment

Thanks traveller

Much like people thought bitcoin was going to keep rising and rising (I along with many were calling a bubble), people on the flip side on the other end of the extreme will believe the SP will keep falling and falling... Remember Oil price at $20-30? Bears were predicting $10 and then it bounced to $80..

Underlying opportunity on any market is the current valuation given by the market at a precise snap shot in time vs the real tangible value. These market value disconnects are where opportunity arises for people to make money.
Huge opportunity in shorting the bubble stocks that defy gravity, as well as huge opportunity in investing in hugely oversold companies with sentiment in tatters but are actually in a very sound position.

I have been watching SOLO for a few years and havent invested until now. The reason being that previous management was uninvestable given the funding mechanism they had in place plus also being second fiddle to Lenigas.

Once I saw the board changes being made in August It pricked my ears up. Once I saw them leverage the HH deal I got a little more interested and then finally was paying off and closing down the death spiral debt financing mechanism.

I knew their asset in Ruvuma was extremely valuable but still didnt invest until I saw the management get to the position we are now in.

Lets see we are end of Q1 2019.

Anyone heard of Rockrose Energy (RRE)? Theyve just done a cracking few deals and one of the few companies in this market to have made big gains.

Interesting perhaps that SOLO director Jon Fitzpatrick who has nearly 5% of SOLO and sunk £1m of his own money in to investing in to SOLO is the person that advised RRE on their recent Dyas deal...he acts as advisor to RRE.

Jon Fitzpatrick is the Managing director and founder of Gneiss Energy:

https://www.gneissenergy.com/gneiss-energy-advised-rockrose-energy-plc-on-their-acquisition-of-dyas-bv-for-eur-e107m/

He is probably one of the best out there in this small cap arena for sourcing deals, well connected in the industry and obviously has keen eye for cashflow positive assets that have potential for huge shareholder returns.

I got the impression from speaking with Jon last Thursday that he was incredibly keen to start seeing some shareholder returns here, he is the director most aligned with us. I also noted the confidence he had to execute and get SOLO in the league of the big boys in due course.

Like I say, maybe expect the unexpected good news also. When you have a company like SOLO which is in such a strong cash/asset position with this sort of management you can expect fireworks at some point.

Buy low, sell high. keep saying this... I consider my average here of 2.18p (averaged down from 2.3p) to be very low. Incredibly jealous I am of those making initial entry at 1.8-1.9p. I see this as the absolute floor as we are now sitting right on the very bare bones cash/asset value excluding any of Ruvuma at all really. Ludicrous when Ruvuma is our flagship asset if you read across to AEX, SOLO should be a minimum of £25-30m MCap currently.

The tide absolutely will turn here, the laws of the markets cannot defy logic forever, works both ways when you have huge bubble valuations, you also get huge market overselling and undervaluation. That is why I love the markets and that what provides the opportunity to make money.

Patience and research... our time is coming.