Solo Oil has raised £2,000,000 gross proceeds through the issue of 363,636,364 new ordinary shares funds of which will be deployed as working capital in the Company’s active investments in both Tanzania and the UK.
According to Solo Oil chairman Neil Ritson the funds will be used to develop discoveries at both the Ntorya and Horse Hill fields.
“Access to additional working capital at this time will permit us to actively participate in the development of the discoveries we and our partners have made at Ntorya in the Ruvuma Basin and at Horse Hill in the Weald Basin, where a far more major discovery has recently been announced,” said Ritson
Dealings in the Placing Shares on AIM are expected to commence on 21 April 2015.
Solo Oil is a partner at the Ruvuma Production Sharing contract in Tanzania with 25 percent interest alongside Aminex which operates the block through its Ndovu Limited subsidiary with 75 percent interest.
Solo also has a 6.5 percent interest in the Kiliwani North Development Licence (KNDL) following the signing of the Asset Purchase Agreement with Aminex plc at a total consideration of US$3,500,000.
Solo and Aminex have also agreed to amend the terms of the original heads of agreement to allow Solo the option to purchase the additional 6.5% interest, on the same terms as the first 6.5% interest in the KNDL, during a period of 30 days after the Gas Sales Agreement (GSA) which has been approved by the Tanzanian Authorities.
Ndovu Limited is also the operator at the Kiliwani North Development Licence (KNDL).