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"Pay Aminex $5 million cash in two tranches, $3 million payable on closing and the remaining $2 million 180 days later •
Fully carry Aminex for its share of costs up to $35 million in respect of its remaining 25% interest (post-transaction) (the “Aminex Carry”), which implies a potential expenditure during the carry period of up to $105 million for the aggregate 75% working interest held by APT and Aminex"
http://admin.aminex-plc.com/uploadfiles/180711_%20Transformational%20Ruvuma%20Farm-Out.pdf
"ISLE OF WIGHT
Isle of Wight, UK, PEDL 331
Join Venture: Solo (30% interest)
In early 2015, Solo together with UK Oil and Gas Investments plc ("UKOG") and Angus Energy Limited (who subsequently sold their interest to Doriemus plc ("Doriemus")) applied in the UK onshore 14th Licensing Round for a 200 square kilometre licence onshore in the Isle of Wight. The partnership was subsequently awarded the area as PEDL 331 by the Oil and Gas Authority (“OGA”) in December 2015."
http://www.solooil.co.uk/our-portfolio/europe/uk/isle-of-wight.aspx
"Ntorya Development Tanzania
Following the announcement made on Wednesday 11 July 2018 by Aminex plc ("Aminex") concerning its decision to farm-out two-thirds of its 75% interest in the Ruvuma Petroleum Sharing Agreement ("Ruvuma PSA") containing the Ntorya gas and condensate field in Tanzania, Solo is currently reviewing its position and options, for example on the pre-emption rights it holds under the Joint Operating Agreement covering the Ruvuma PSA. The decision by Aminex to farm-down their interest to a well-capitalised group with existing diverse interests in Tanzania is seen as a positive move which will see the Ntorya project move towards early gas production."
Solo is in early stage discussions with a major bank on the provision of project financing for the development of the Ntorya field from completion of the planned Chikumbi-1 appraisal well until the development reaches at least 40 million standard feet per day ("mmscfd"). Solo holds a 25% interest in Ruvuma, including the Ntorya discovery.
"Future Distributions to Shareholders
The Board reiterates its existing policy on the distribution of cash or shares from the future monetisation of significant core investments, including the Ruvuma PSA, HHDL or Helium One Limited. The Board's policy is to distribute to shareholders the majority of the proceeds of any sale or farm-out, in cash or in specie, depending on the terms of any such divestment and the commercial and tax effectiveness of a distribution. Any distribution to shareholders will be considered by the Board on a case by case basis bearing in mind also the Company's Investing Policy."
“To acquire a widely distributed mix of non-operated oil and gas resource developments and production assets across the world”
http://www.solooil.co.uk/who-are-we/solo-oil-at-a-glance.aspx
"UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) announces that Horse Hill Developments Ltd has informed the Company that the final Horse Hill 1 ('HH-1') Portland test flowed at a stable dry oil rate of 323 barrels of oil per day ('bopd'), double the previously reported rate. The final total aggregate stable dry oil flow rate from two Kimmeridge limestones plus the overlying Portland sandstone stands at 1688 bopd. Over the 30-90 hour flow periods from each of the 3 zones, no clear indication of any reservoir pressure depletion was observed. Further analysis of data is ongoing and will be reported shortly."
"Further Update on Horse Hill-1 Flow Test
Horse Hill-1 Oil Discovery Flows at a rate of 900 barrels per day from second zone
UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) announces that Horse Hill Developments Limited ("HHDL") has informed the Company that 100% dry, 40-degree API, light, sweet oil has flowed freely to surface, without pumping, at an average stabilised rate in excess of 900 barrels per day from an 88-foot aggregate perforated zone within the Upper Kimmeridge limestone interval at a depth of approximately 840 metres below ground level.
Restricted flow of 100% dry oil, through a 1-inch choke, using a rod pump, commenced at around 1350 hrs GMT yesterday at an initial instantaneous rate in excess of 700 barrels per day ("bopd"). At circa 1430 hrs the well started flowing freely to surface, without pumping. The free flow rate increased to over 900 bopd at 1500 hrs. The flow of dry oil then stabilised from 1500 hrs to approximately 1800 hrs, at rates averaging in excess of 900 bopd.
Note that as a consequence of flow initialisation via rod pump, the initial natural flow rates stated above were further restricted by the rods within the 2 and 7/8-inch production tubing.
The well was shut in at approximately 1830 hrs yesterday. The well was opened and free 'natural' oil flow recommenced at 2234 hrs yesterday. The well was flowed to obtain a further stabilised flow period and reservoir engineering data. A further update will be provided once this new data is available.
With this stable Upper Kimmeridge limestone flow, the two Upper Kimmeridge and Lower Kimmeridge limestone intervals have now produced a combined average stable rate of over 1,360 bopd.
As previously announced, on completion of this Upper Kimmeridge test, operations will move to the shallower Portland sandstone zone at approximately 615 metres below ground level."
323
“UK Oil & Gas, Alba Mineral Resources and Solo Oil all jumped this week as the long-awaited next phase of flow testing at the ‘Gatwick Gusher’ kicked off.
The 150-day programme at Horse Hill is a follow up to the 2016 testing, which saw oil flow at an impressive 1,688 barrels per day, although that figure was extrapolated from a series of shorter tests (three 30-90 hour tests).
The plan this time is to see if the HH-1 well can continue to flow at or near the level over a longer period of time.
Some close to the project reckon there could be as much as 100bn barrels of oil underfoot, but others have questioned just how easy it will be to get the black stuff up to the surface even it is there.”
http://www.thisismoney.co.uk/money/investing/article-5901141/Low-cost-African-airline-sees-two-thirds-wiped-value-warning-bust.html
“PEDL331 Arreton oil discovery, UKOG 65%: Xodus Competent Person's Report ("CPR") (see below) confirms Arreton-1 & 2 discovery contains 10.2 million barrels ("MMbbl") UKOG Net P50 Contingent Resources. Arreton-3 appraisal and Arreton South exploration well sites chosen, lease negotiations are near finalisation, and a planning application is expected to be submitted this summer. Drilling is targeted for late 2019.”
“Horse Hill-1 ("HH-1") PEDL137 oil discovery, UKOG 32.435%: Post period end, 150-day extended well test ("EWT") operations commenced at HH-1. The EWT campaign includes three flow and pressure build-up sequences over the Portland, Kimmeridge Limestone 3 ("KL3") and KL4 oil pools, which in 2016 flowed at commercial initial rates of 323, 464 and 901 barrels of oil per day ("bopd") over short stabilised flow periods of 4, 7.5 and 8 hours, respectively. The EWT, if successful, is designed to enable a declaration of commerciality to be made, with first stable oil production targeted in 2019.”
"Once a development licence has been awarded, Solo and Aminex will carry out an approved work programme, yet to be agreed with the Tanzanian authorities, which may potentially include 3D seismic acquisition and further drilling. A well designed to further appraise the Ntorya gas field at the previously proposed Ntorya-3 location has been designated an exploration well as it will additionally test a deeper Jurassic age target to an estimated total depth of 3,400 metres. Due to the exploration target of the well it has been renamed Chikumbi-1 ("CH-1"). Rig tending was underway in April 2018 and it is hoped that the well can be spudded in 2018 once the Mtwara Licence has been extended for a further period as envisaged."
"The Horse Hill discovery made in 2016 yielded exceptionally high flow rates at all three productive levels on test and is expected to receive further longer-term testing in order to help design a commercial development. Solo has reviewed the recent encouraging drilling and testing by other operators in the Weald Basin and as a consequence seized the opportunity to increase the Company's investment in Horse Hill from 6.5% to 9.75% ahead of the longer-term testing activities."
“In summary, the near-term outlook can be defined as a period of high activity across the portfolio with a number of important operational and corporate events that will, in the success case, enable Solo to realise the value of its portfolio and monetise key assets for the benefit if its shareholders.”
“Production from the KN-1 well declined sharply in late 2017 due to pressure loss and associated water influx to the wellbore. The operator has investigated options for recovering production and further reserves from KN-1 and has proposed to recomplete the well in an additional productive zone and in due course to add wellhead compression. An update from the Operator is expected pending further work on plant specifications and appropriate government approvals.”