Solo Oil Plc Disposal of Ausable Reef gas assets to Levant (4345S)
July 08 2020 - 8:18AM
UK Regulatory
TIDMSOLO
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
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END
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