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Would also add, expect the unexpected good news perhaps

Those selling at these very base asset valuation/cash levels can only be due to desperation (lots been using leverage and wiped out due to poor recent markets)

or last few beaufort clients.

or may be Don Strang now he is free to sell his 3m shares without notification.

Noone with a rational mind would be selling. You know how it goes as soon as the newsflow starts then its going to get chased back to fairer value sharpish

Circular...K1 flow results.... licence... Vote...farmout.... 25 year licence... C-1 drill.... 3D seismic etc

and SP down.. guess itll get walked up again by mms after collecting cheap ones

I swear some people who supposedly hold this share havent bothered to research anything thats happened in the last 6 months... Kejoglo, seriously fella...

Those of us that went and spoke to directors on Thursday it was VERY clear than no more dilution for shareholders - they are now shareholders and aligned with us. JF particularly has sunk £1m of his own money in to SOLO which is now worth £500k - he is sitting on a bigger loss currently than everyone and is aligned with us. So lets just stick to the facts..

SOLO is fully funded ++ throughout 2019.

A very strong position going forward... I dont give the monkeys about past SOLO, different management, different funding mechanism, different motives... past management has 0 relevance for any new investors and its new investors that will see this one back to 5-10p in due course.

... as I was saying about that deadwood.

New management distancing themselves from the old legacy solo gravy train.

Looking forward to seeing who the new appointment will be :)

C-1 is a huge catalyst for sure... Id be expecting a MCap back in the £40-50m range here by the time that one spuds given the size of it net to solo, low risk ,high COS nature of it and also the fact if a success will be a production well.

Before then merely having the Aminex farm in complete with the licence extension would be a big catalyst in itself given currently there market isnt pricing any of Ruvuma at all here. You basically get Ruvuma in for free with SOLO. That should really bolt another £16m on to the MCap given the read across value from Aminex;s deal.
Also lets not forget once the licence extension lands the Zubairs could be knocking on SOLO's door with an offer way before C-1 spud.

Dan Mailing was clear that any offers that come our way for Ruvuma would be put to SHs to vote on. So if we think its too low ball we can vote it down.

Cracking write up CP! thanks for sharing.

I can only see upside from these levels(!)

Bring on next week.

C-1 spudding due likely Q1E 2019 which will unlock another TCF of gas. Aminex also retain 25% interest in Ruvuma as their flagship are valued £60m. There is a such a wide value disconnect on any metric you like. Aminex due to release their circular to vote through this coming week so hopefully then market will start pricing in some Ruvuma here in SOLO (currently market isn’t pricing anything – nuts!)

Kiliwani North – Solo hold 8% stake. Good chat with the JV manager here. Sounds extremely encouraging that the deeper perforations should yield exciting results and we will find out by YE. Essentially the deeper zone was never perforated before and was always the main prize. Quite how they missed it first time I dont know but they shot in to the upper layers which still gushed gas so I guess never needed to go deeper. Success here in line with previous production would yield 100boepd net to SOLOs 8% which would more than cover all overheads – food for thought, perhaps?

Helium One – SOLO hold a circa 13% stake here, have sunk £2.5m of cash which is now valued at £2.8m from the last pre IPO funding round. From chatting to their director on Thursday it looks like they are looking to list in London next year. This investment sounds extremely exciting in its own right and im sure we will hear more here shortly. 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.

New acquisitions – Well it sounds like they very much have an acquisition on the target here. Not much they would divulge obviously but sounds like they are looking for cashflow generation and at no dilution to SHs through leveraging off existing assets as a possibility (im thinking Ruvuma deal - purely speculation on my part).

Optionality – Aminex farmed out 50% of Ruvuma for $40m cash carry to the Zubairs (Billionaire Omani family organisation). They could well be putting a bid in for SOLOs 25% stake pending licence extension. Even in line with the same conditions we here would be looking at instant 100% upside from current SP. Solo Would then have £24m warchest to go shopping with…

Downside from these levels I don’t see any more than 10% now at absolute base cash/asset value. Obvious huge upside and its just a matter of when not if. Buy and lock them up tight.. ignore the "white noise"

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. Lots just chase shareprice and end up being the ones chasing a spike and it’s the same ones bid chasing at the bottom of the cycle.

My investment here is now the largest in my portfolio for the reasons below. Im extremely confident itll come good and even more so since speaking to the directors on Thursday. It may dip some more, it may not.. to be frank, It matters not. Its all white noise as nothing moves in straight lines. The only two prices that matter are your buy price and sell price.

Why am I so confident here?

Well… bearing in mind £11.5m current MCap…

For any new investors SOLO has probablye one of the strongest cash balances vs Mcap in AIM minnow arena. £7million (Est break down £5m + £2m remaining ukog to be sold before YE).

So £7m 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 on Thursday 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 are new, since August and have already made great changes at foundation level paying off and closing down the death spiral debt finance and also leveraging more cash from the HH deal whilst minimising cash commitments – another board change incoming shortly quite possibly to further strengthen.

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 frankly where the real value lies here. 25% stake in Ruvuma which equates to currently 30mmboe 2C 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! Theyre still “what if” prospective.

lol yes that photo not showing many investors.. the shot is pointed more at the directors who were giving a speech at the time, investors all on the right out of shot listening.

I was very impressed by Alastair, I trust this guy to deliver. I have met a fair few directors in my time and many are just city lifestyle spinners / car salesmen types that you can see straight through (all mouth no trouser). Alastair however comes across a man of his word, honorable, direct and down to earth.

They were lets say quietly confident about KN1 , geology is fantastic and the deeper section that they will be perforating was actually always the main prize but missed the first time. Nothing ever certain but sounds like a high chance of success. Currently market isnt pricing any KN1 so hopefully positive news there will help restore some sentiment.

Really enjoyable and worthwhile investor gathering, great to meet you CPerkin! Nice to know there are genuine people that exist on these BBs not just the keyboard warriors.

All I can say is similar to Cpekin, I walked away yesterday having absolute confidence in this investment given the managements vision and how they want to conduct themselves going forward. The old SOLO and old SOLO stigma will be a thing of the past soon with what sounds like the last of the deadwood out very shortly. They want to disassociate themselves with this and in due course become a stock for genuine investors and funds (rather than the usual equity dilution city spin BS). No mean feat (given SOLOs past) but they have the right management team, tools and base assets / cash position to really leverage from.

Will reiterate from this 2p base level I dont see much downside at all. They are fully funded for all their commitments (assuming theyre retaining 25% ruvuma) throughout 2019. Obviously funded for longer than that should they farm out some of Ruvuma...

Sounds like new acquisitions are being looked at with a view to get some cashflow coming in whilst also spreading geopolitical risk.

Theyre being ruthless with selling any non core assets.

Kiliwani North sounds extremely encouraging so looking forward to news on this before YE. Again if a success cashflow from this could more than cover SOLO overheads.

Ruvuma obviously the jewel asset and with the circular being released by end of next week the market should hopefully start pricing some of this asset in for us at some point soon!

John FP has put in over £1m of his own cash in to SOLO and is sitting at the moment on a fair paper loss so is keen to see some traction in the SP shortly as we all are! These guys are very much aligned

People calling the finish line here but there is a ton of newsflow here to be released next 2-3 months.

Getting tired of the "ooohhh the price is down another 2% today, told you so" although it does make me laugh.

Zero risk of a placing

£7m 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!.

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 succesful will mean cashflow net to solo

Yet we have the same idiot going "told you so" ... told us what? I dont care what the SP is right now, only price that matters is the price I buy at and the price I sell at.

Patience is a virtue...

Likewise having to leave early to get there.

They are talking about their forward plan, for a company that uses PR firm as the middleman its a chance for some one on one time with management hopefully and to pick their brains. They are 10% shareholders here and have a solid warchest to unlock shareholder value, many different options at their fingertips that I wish to discuss with them.

until the fun finally starts.

To be honest the great thing with SOLO is the MCap is near fully backed up by cash and investments (excluding ruvuma) so we have many options from this level.

Risk v reward absolutely second to none for me. Upside on Ruvuma licence and farm in is instant 100% return from here on what should be a formality, and downside is 10-20%.

Looking forward to tomorrows investor gathering, Willowpillow, Steve58 will you be attending? (lol)

The previous guidance we have had from Aminex is C-1 will be drilled end of this year.

We await the next update pending licence extension

We find out this week prior to Thursdays Investor gathering.

The main thing of note to give confidence to existing shareholders is that the board have significant skin in the game holding 10% of the company and put in £260k at 2.25p just a few months back. That is a significant amount by anyone standards.

Good overview from new Chairman Alastair Ferguson: https://www.youtube.com/watch?v=PTtRuA3e_jI

Good questions thetank its good to have a non investor actually bring some sensible points to the table (you clearly have done some research) rather than just blindly deramp/troll.

Zubairs already hold 29% of Aminex so one thought is they largely had the company over the barrel with regards to the farm out deal. I mean they could call an EGM to oust the AEX management team if they so wished.
Aminex's farm out deal is still to be put to the SH vote but I think shareholders in Aminex now just want it done to drill C-1 and get the road to production/cashflow in motion. At the time of the farm out deal being announced I remember many Aminex shareholders werent particularly happy (and I can understand given AEX MCap at the time).

In fact its great for SOLO having Zubairs involved as operators as they hold much more firepower than Aminex both financially as well as with Tanzanian Govt.

So where does that leave SOLO? Well they are now able to fund C-1 and the next round of 3d from their current existing bank balance and so are not pressured to farm out any of it until after C-1 results and benyond. This puts them in a much stronger position at the bargaining table also adding to the fact Zubairs dont have a say here.. If we arent happy with the terms then no deal.

As you point out the direct read across value is $20m or £16m for SOLOs 25% share as a backstop. Yet MCap here is £12.5m with £7m in cash (we find out about ukog sale next week), £3m in Helium one .. etc etc. Hence why I say as a backstop fair value here is £25-30m or circa 4.5-5p for starters.

Interestingly the SOLO board also say they may look at selling their full stake in Ruvuma prior to C-1. So all options on the table, one thing for sure is that its only really upside from these levels.

worth watching to remind people about the Ruvuma gas discoveries (x2) that SOLO holds 25% stake in. Its a colossal gas discovery currently mr market isnt pricing in for #SOLO

Wheels for this asset due to get put back in to motion imminently.

https://www.youtube.com/watch?v=8BcnZMGqsds