Solo Oil Secures $5 Million to Fund Tanzania, Horsehill Operations

Solo Oil has entered into a Convertible Loan Agreement with institutional investors arranged by RiverFort Global Capital for a total maximum commitment of US$5 million.  The Company has also drawn a first tranche of US$1.5 million, with subsequent drawings against the facility to be at the Company’s sole election.

The First Tranche will be used to fund the Company’s share of forecasted activities within the Company’s investment portfolio, specifically:

• the final reconciled expenses for the Ntorya-2 well and flow testing in Tanzania, in which Solo holds a 25% working interest,
• screening engineering studies for the planned Ntorya early production scheme and full field development,
• a Competent Persons Report for the estimated gross 1.34 trillion cubic feet (“tcf”) gas in place Ntorya accumulation,
• additional studies at the Kiliwani North producing gas field, where Solo holds a 7.55% interest,
• upcoming long term well testing at the Horse Hill-1 oil discovery in the UK, in which Solo has a 10% participating interest in Horse Hill Development Limited,
• pre-drill technical work within the Helium One Limited investment in which Solo holds a 10% interest by means of shares, and; general investment working capital needs over the next 6 months.

According to Solo Oil chairman Niel Ritson the company is approaching a period of considerable activity which will require expenditure across all of the mature investments within its diverse portfolio.  This expenditure he says will enhance the core underlying value of our portfolio through a range of exciting operational milestones.

“Having undertaken a thorough review of the funding options available to Solo we have determined that this convertible loan facility is by far the most effective and least dilutive option for the Company and its shareholders.  The facility conversion price is set at a 45% premium to the closing share price and the First Tranche provides us with the ability to cover our share of anticipated costs associated with the multiple activities that we forecast in the near future.    As previously indicated, should we seek to raise significant operational funds, for example to drill additional wells in Ruvuma, we will open that funding round to existing shareholders to participate,” he said.