Solo Oil PLC (LON:SOLO) saw its shares rise after it updated investors on the progress of its 15% owned associate Helium One which is considering options for new funding to support exploration plans in Tanzania.
An initial public offering (IPO), on the Australian Securities Exchange, is one option being considered by Helium One and it has now appointed Aussie stockbroker PAC Pty to help it review this potential outcome.
Solo said the expectation is that the funding will be targeted for mid-2018, though the exact timing and nature of the capital raising is yet to be finalised.
Operationally, progress has been made in the reprocessing of existing seismic data, on improved resolution, with a view to further investigate direct helium indicators. Further desktop and field work is planned in preparation for new drilling.
It is planned that the new drill programme will get underway in the second half of this year.
"We are delighted to see Helium One taking considerable strides forward both corporately and operationally,” said Neil Ritson, Solo Oil chairman.
“Helium One's possible IPO represents a real catalyst in terms of their growing profile and their ability to fund an active near-term work programme in Tanzania, which is expected to see drilling later this year."
Tom Abraham-James, Helium One chief executive, meanwhile, added: “We have been reviewing our long-term funding options for some time and are beginning to focus on an IPO as most suitable for us.
“The ASX is a proven capital market and one in which our team has considerable experience.
“We would like to thank Solo for their continued support and guidance and look forward to an exciting year ahead for Helium One and all its shareholders."
In late afternoon trading, Solo Oil shares were up 2.7% at 4.75p.
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