17 Nov 2010 07:00
For Immediate Release
17 November, 2010
SOLO OIL PLC
("Solo" or "The Company")
New Canadian well to be drilled and election to fund Stage 2 of Canadian Operations.
Solo Oil plc, the AIM listed International Oil and Gas Exploration and Development Company, today announces an update on its Canadian Joint Venture with Reef Resources Ltd ("Reef").
HIGHLIGHTS:
·; Solo has elected to advance the 2nd and final tranche of the $1.65 million participating loan to Reef to fund the drilling of the vertical well and purchase additional on site equipment.
·; Reef has made well license application for the new Reef Ausable #5 vertical well northwest of London, Ontario. The 615 metre vertical well is expected to be spudded before mid December with results reported January 2011.
As announced on 29 April 2010, the Company agreed commercial terms of a $1,650,000 CAN participating loan agreement to Reef for financing the development of a proven oil and gas production asset in Ontario. Solo receives 60% of net production revenue post tax until loan repayment and 50% net earnings thereafter from the funded developments.
Enquiries:
Solo Oil PLC: +44 (0) 20 7016 5100
David Lenigas/Kiran Morzaria
Beaumont Cornish - Nominated Adviser +44 (0) 20 7628 3396
Roland Cornish
NOTES TO EDITORS
Solo Oil Plc is petroleum resources exploration and Development Company, with objectives to acquire and develop a diverse portfolio of direct and indirect interests in exploration, development and production oil and gas assets which are based in the Americas, Europe and Africa. More information on Solo can be found at www.solooil.co.uk.
Reef was formed to participate in the exploration, development and production of conventional crude oil and natural gas reserves in Ontario and western Canada. The Company's strategy is to build shareholder value through internally generated exploration and development drilling and through selective acquisitions. Reef received a $1.65 million CDN participating loan commitment from Solo Oil plc, an AIM listed international oil and gas exploration and development company on April 29, 2010. Reef had already received $750,000 of the loan commitment.
The Company's Ontario asset has gas storage rights, gas re-injection permit for gas recycle, NGL recovery, arbitrage and enhanced oil recovery. A key component of Reef's Ontario strategy is to identify and exploit undervalued prospects in the Ontario basin by utilizing the company's 23,500 acres of proprietary 3D seismic. In addition to its Ontario Properties, Reef has identified multiple oil and gas acquisition and development opportunities throughout Canada.
Reef resources announcement:
REEF RESOURCES LTD. plans new OIL well in S.W. ontario.
November 16, 2010 - Calgary, Alberta - Reef Resources Ltd. (REE - TSX.V) ("Reef" or the "Company") Reef Resources Ltd. has made well license application for the new Reef Ausable #5 vertical well northwest of London, Ontario. The 615 metre vertical well is expected to be spudded before mid December with results reported January 2011.
The well will be cored in order to accomplish key objectives including:
·; Define the cap rock integrity for future gas storage. This is invaluable for gas storage planning and licensing.
·; Finalize drill locations and trajectories for the proposed four horizontal wells planned for 2011. The cored data will be correlated to the Company's existing 3D seismic.
The Company plans to drill four horizontal wells in two stages during the first half of 2011.These horizontal wells are part of the Natural Gas Recycling and Enhanced Oil Recovery ("EOR") program that Reef is executing. Two horizontal wells will be used for injecting natural gas to pressurize the reef structure and the other two horizontal wells, as well as existing vertical wells, will be deployed as production wells. The production wells will produce oil and natural gas liquids and the natural gas will be recycled. An EOR pilot program, injecting natural gas, is already producing approximately 40 barrels of oil per day with only minimal gas injection at a rate of 130 mcfd.
Solo Oil Plc has elected to advance the 2nd tranche of the $1.65 million participating loan to Reef to fund the drilling of the vertical well and purchase additional on site equipment. The on-site equipment (de-ethanizer) will increase productivity of the EOR pilot program already underway.
Reef was formed to participate in the exploration, development and production of conventional crude oil and natural gas reserves in Ontario and western Canada. The Company's strategy is to build shareholder value through internally generated exploration and development drilling and through selective acquisitions.
The Company's Ontario asset has gas storage rights, gas re-injection permit for gas recycle, NGL recovery, enhanced oil recovery and arbitrage. A key component of Reef's Ontario strategy is to identify and exploit undervalued prospects in the Ontario basin by utilizing the company's 23,500 acres of proprietary 3D seismic. In addition to its Ontario Properties, Reef has identified multiple oil and gas acquisition and development opportunities throughout Canada.
For more information please contact:
Arnie Hansen Larry Olson
President & CEO Vice President, Finance
T: (403) 251-9447 T: (250) 460-2640
665 8th St. SW,
Calgary, AB
T2P 4H5
Forward Looking Statements - This news release contains certain forward-looking statements, which include assumptions with respect to the valuation of Reef's reserves, funds raised from a financing and future capital expenditures. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Not for distribution to US Newswire Services for dissemination in the United States.