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Solo Oil Plc - Disposal of Ausable Reef gas assets to Levant

RNS Number : 4345S
Solo Oil Plc
08 July 2020
 

8 July 2020

Solo Oil plc

("Solo" or "the Company") 

 

Disposal of Ausable Reef gas assets to Levant

Solo (AIM: SOLO), the AIM investing company targeting attractive production and development opportunities within the European energy market, provides the following update further to its announcement on 22 March 2019 regarding the disposal of its 28.56% interest in the Ausable Reef gas assets (the "Assets"), located in Ontario, Canada, to Levant Exploration and Production Corp. ("Levant"). The Assets comprise 23,500 acres of petroleum leases in southern Ontario that have been shut-in for a number of years.

 

The Company has now entered into a conditional asset purchase agreement ("Agreement") with Reef Resources Limited ("Reef") and Levant for the sale ("Sale") of interests in the Assets held by Reef (71.44% interest) and Solo (28.56% interest) to Levant. Subject to satisfaction of certain conditions set out in the Agreement, including confirmatory due diligence by Levant on the Assets, Solo expects to complete the Sale in the near future.  

 

As consideration for the Sale of Solo's interest, Levant shall issue the equivalent of a 1% Gross Overriding Royalty to the Company on any future production revenues. In addition, Levant will assume responsibility for future expenditure associated with the Assets. 

 

The Company fully impaired the value of its holding in the Assets to zero in 2017, and incurred only nominal costs related to its holding in the Assets in 2019.

 

Commenting on the disposal, Tom Reynolds, CEO, said:

 

"The disposal of the Ausable Reef interest is another milestone as we transition the Company away from legacy assets and progress along our stated strategic path.  Over the last year we have made considerable progress in rationalising the portfolio to align it with our strategic objectives and provide line of site to value realisation on behalf of our shareholders. Completion of our ongoing Tanzanian assets sales process would mark a further major milestone in achievement of this strategy." 

 

 

 

 

For further information:

 

Solo Oil plc

Tom Reynolds, CEO

Doug Rycroft, COO

 

 

+44 (0) 20 7440 0642

 

 

 

Strand Hanson Limited, Nominated Adviser & Broker

James Spinney / Ritchie Balmer / Rory Murphy

 

+44 (0) 20 7409 3494

 

 

Buchanan, Financial PR

Ben Romney / Kelsey Traynor / James Husband

 

+44 (0) 20 7466 5000

 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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Price: 1.025

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Market Cap: £6.64 m
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