SOLO.L Regulatory News (SOLO)

For Immediate Release

30 March 2012

Solo Oil plc

("Solo" or the "Company")

Unaudited Interim Results for 6 Months Ended 31 December 2011

CHAIRMAN'S STATEMENT

I am pleased to present the interim report for the Company for the 6 months ended 31 December 2011.

Investments

The Company, within its Investment Policy approved by the shareholders in 2009, has continued to develop its interests in the Ruvuma PSA in Tanzania and through its investment in Reef Resources Limited who operate in SW Ontario, Canada.

Consistent with the Company's desire for a diverse portfolio of direct and indirect interests in exploration, development and production further areas for future investment are also under close review including within East Africa and in North and South America. The Company has increased its direct interest in the Reef Resources projects in Ontario and have also progressively increased its holdings in the Tanzania assets from 12.5% to 18.75% in the period and to 25% subsequently. In November 2011 the Company commenced evaluation of a new exploration opportunity in Argentina under a Heads of Agreement with Obtala Resources Ltd.

Ruvuma PSA

The Ruvuma Petroleum Sharing Agreement ("PSA") lies in the south-east of Tanzania and covers approximately 12,360 square kilometres with some 20% of this area offshore and the balance onshore. Within the Ruvuma PSA are two separate licence area known as Lindi in the north and Mtwara in the south, which is contiguous with the Mozambique border. Solo acquired a 12.5% working interest in the PSA through participating in 18.75% of the costs of the Likonde-1 exploration well and the payment of some back costs associated with previous seismic data acquisition.

The Likonde-1 well was drilled in the Lindi Block to a total depth of 3,647 metres and was plugged and abandoned after discovery of a 250 metre gross interval of sands with residual oil shows and reaching a gas zone at TD. Following seismic reprocessing and interpretation Tullow Oil, the operator decided to reduce its interest in the second commitment well and in September 2011 Solo increased its interest to 18.75%. Aminex also increased their interest to 56.25% and took over operatorship in order to drill the second commitment well, Ntorya-1, in the Mtwara block.

The Ntorya-1 well, 14 kilometres south of Likonde-1, was designed to test the same sand intervals encountered in Likonde-1, but closer to the interpreted stratigraphic pinch-out and structurally up dip. The well was spudded with the Caroil-6 rig on the 22nd December 2011 and at the end of the reporting period was drilling ahead at 550 metres towards the main target at approximately 2,000 metres.

Subsequent to the reporting period Ntorya-1 was drilled to 2,500 metres without encountering the expected sandstone target. Aminex plc (operator) and Solo decided to drill to a deeper objective; however, Tullow Oil elected not to participate in the well deepening. The well was subsequentlydrilled to 2,750 metres and encountered high gas readings. Electric logs showed a gross sand interval of 25 metres from 2,660 to 2,685 metres with a 3 metre net gas bearing pay zone at the top of the interval with porosities of 20%. A further 16.5 metre lower sandstone interval contains additional probable gas pay. Due to the withdrawal of Tullow Oil, Solo holds a 25 % interest in the discovery. At the time of reporting a 7" liner is being completed prior to further deepening of the well to a further potentially oil prone target at 3,000 metres. The well will be flow tested as a gas discovery at 2,600 metres once suitable equipment can be mobilised.

SW Ontario

During 2010 Solo negotiated a CDN$1.65 million participating loan agreement with Reef Resources Limited ("Reef") in order to finance the recommencement of oil and gas production at the Ausable Field in SW Ontario and to increase oil production through gas cycling and the drilling of additional wells.

During the first half of 2011 various field activities were conducted and the Ausable #5 ("A#5") well was drilled. These activities were sufficient to prove the concept of the Ausable Gas Cycling and Enhanced Oil Recovery ("EOR") project. In May 2011 Solo decided to convert its Participating Loan to a working interest in the Reef's Ontario properties, including the Ausable and Airport South Fields. A General Conveyance and Assignment Agreement was completed in July 2011 and Solo obtained a 23.8% working interest for the conversion of its existing loan and additional payments totalling CDN$850,000. Solo also obtained the option to acquire a further 14.3% for a further payment of CDN$1.5 million once Reef had raised at least that level of independent third party finance. In December 2011 Reef completed a CDN$1.96 million financing. At the time of writing Solo is completing arrangements to take up the additional percentage interest and expects to complete that transaction in the 2nd quarter 2012.

Testing of an improved oil pumping system using venturi or jet pumps was undertaken on well A#1 at the Ausable Field and based on performance it has been agreed to install similar pumps in all the Ausable well. By end 2012 a venturi had been installed in well A#5 and was being commissioned. Some design improvements were required due to waxing occurring due to low ambient and reservoir temperatures and an in-line heater was being sourced to combat this problem.

To initiate the gas cycling and EOR scheme additional gas is required to re-pressurise the Ausable Field and maintain pressure above the bubble point. Two sources of gas have been identified; firstly gas in the Airport South field owned by Reef and Solo, and secondly utility gas purchased from Union Gas at a nearby tie-in point to their pipeline network. The tying in of Airport South requires the laying of a 5 kilometre pipeline to Ausable and that work was underway at the end of the reporting period. Flow at the metering station on the Union gas line requires reversing and that work was planned for late 1st quarter 2012. At the time of writing both activities were near completion, with the Airport South pipeline slightly delayed through weather during the winter period.

Finally, in early 2012 Reef spudded a new exploration well, Airport North #1, to look for additional gas to supply to Ausable. That well is presently drilling ahead at 576 metres after the setting of intermediate casing and drilling to a total depth of 610 metres is expected to be completed in early April.

Board Composition

There have been no changes to the Board of Directors in the period under review, however, following the end of the reporting period Mr. Kiran Morzaria indicated to the Board his wish to retire from the Board. His resignation became effective on the 26th March 2012.

CONTACTS:

NOTES TO THE INTERIM REPORT FOR THE PERIOD ENDED 31 DECEMBER 2011

1 BASIS OF PREPARATION

The financial information has been prepared under the historical cost convention and on a going concern basis and in accordance with International Financial Reporting Standards and IFRIC interpretations adopted for use in the European Union ("IFRS") and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The financial information for the period ended 31 December 2011 has not been audited or reviewed in accordance with the International Standard on Review Engagements 2410 issued by the Auditing Practices Board. The figures were prepared using applicable accounting policies and practices consistent with those adopted in the statutory accounts for the period ended 30 June 2011. The figures for the period ended 30 June 2011 have been extracted from these accounts, which have been delivered to the Registrar of Companies, and contained an unqualified audit report.

The financial information contained in this document does not constitute statutory accounts. In the opinion of the directors the financial information for this period fairly presents the financial position, result of operations and cash flows for this period.

This Interim Financial Report was approved by the Board of Directors on 29 March 2012.

Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ('IAS') 34 - Interim Financial Reporting as adopted by the European Union. Accordingly the interim financial statements do not include all of the information or disclosures required in the annual financial statements and should be read in conjunction with the Group's 2011 annual financial statements.

Basis of consolidation

The consolidated financial statements comprise the financial statements of Solo Oil Plc and its controlled entities. The financial statements of controlled entities are included in the consolidated financial statements from the date control commences until the date control ceases.

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

All inter-company balances and transactions have been eliminated in full.

Foreign currencies

The functional currency of each entity is determined after consideration of the primary economic environment of the entity. The group's presentational currency is Sterling (£).

2 SEGMENT REPORTING

Segment information is presented in respect of the Group's management and internal reporting structure. As currently the Group is not in producing or exploring directly, there is no revenue being generated, and the main business segment is that of a corporate administrative entity.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

Operating and Geographical segments

The Group comprises the following operating segments:

Corporate - Parent company administrative costs, and investments, in United Kingdom.

Exploration and development - costs in relation to the Group's investment in oil exploration.

2 SEGMENT REPORTING CONTINUED

2 SEGMENT REPORTING CONTINUED

2 SEGMENT REPORTING CONTINUED

3 LOSS PER ORDINARY SHARE

The calculation of earnings per share is based on the loss after taxation divided by the weighted average number of share in issue during the period:

As the inclusion of the potential ordinary shares would result in a decrease in the loss per share they are considered to be anti-dilutive and, as such, a diluted loss per share is not included.

4 SHARE CAPITAL

During the period 13.8 million shares were issued for non cash consideration valued at £100,000 to settle the fee for the £10 million three year equity facility.

No options lapsed or were cancelled or exercised during the period ended 31 December 2011 (2010: nil).

No warrants lapsed or were cancelled or exercised during six months ended 31 December 2011 (2010: nil).

5 INVESTMENT IN GROUP COMPANIES

6 INTANGIBLE ASSETS

At 31 December 2011, the Directors have carried out an impairment review and are of the opinion that carrying value is now stated at fair value.

7 EVENTS AFTER THE REPORTING DATE.

The Company announced that it had issued and allotted the following equity in relation to its three year £10 million Equity Line Facility with Dutchess Opportunity Cayman Fund Ltd:

 6 January 2012: 59,322,034 new Ordinary Shares of 0.01p at a price of 0.59p each share pursuant to a drawdown of £350,000;

1 February 2012: 115,384,615 new Ordinary Shares of 0.01p at a price of 0.65p each share pursuant to a drawdown of £750,000; and

28 February 2012: 38,461,538 new Ordinary Shares of 0.01p each at a price of 0.65p each share pursuant to a drawdown of £250,000.

8 The financial information set out above does not constitute the Group's statutory accounts for the period ended 30 June 2011, but is derived from those accounts.

9 A copy of this interim statement is available on the Company's website www.solooil.co.uk