Solo Oil PLC (LON:SOLO) executive chairman Alastair Ferguson highlighted “further significant steps” taken by the company towards its strategic goals, including rationalising its asset portfolio and strengthening its management team.
The AIM-quoted oil and gas investor is now preparing for a period it hopes will be defined with “strong growth and value creation”, Ferguson added in Friday’s interim results statement.
“The work carried out to date in monetising the company's non-core assets provides us with a strong balance sheet enabling the board and management a platform to execute a strategic vision focused on returning value for shareholders,” said Ferguson.
“We aim to establish this company as a mid-cap E&P underpinned by high quality assets and solid cash flow.
“Furthermore, we feel confident that we have the right team and strategy in place to achieve these ambitious objectives within our stated timeframes."
During the period, Solo completed the disposal of its 30% interest in an exploration asset on the Isle of Wight and inked a head of terms agreement to exit its 28.56% holding in Reef Resources.
Ferguson was appointed as executive chairman, and the management team was also strengthened as Douglas Rycroft was named general manager (prior to becoming chief operating officer). The company also changed its representation on the board of part-owned associate Helium One and participated in a convertible loan note financing for that business.
Since the end of June, added to its team further with Rycroft taking the COO position and Romina Mele-Cornish joining as chief financial officer.
Operationally, the company’s resources were boosted via agreements with service providers THREE60 and NRG.
It highlighted that an asset screening process for its new business strategy is continuing. The aim is to achieve a 5,000 barrels oil equivalent production rate within three years.
In terms of financial results, Solo reported a £652,000 loss for the six months ended 30 June, and, it finished the period with £2.95mln.