Solo is pleased to announce that it has signed a Sale Purchase Agreement ("SPA") to acquire an additional 4.9% shareholding in Swiss based Pan Minerals & Oil AG ("Pan Minerals") for a cash consideration of US$500,000. This brings the total investment into Pan Minerals to approximately £800,000 and increases Solo's direct equity interest in Pan Minerals from 15% to 19.9%.
As previously announced in May 2013, the purpose of Solo's investment in Pan Minerals is to assist in the financing agreements in order to progress Pan Mineral's operations onshore in West Africa. Pan Minerals is a Special Purpose Vehicle company focused on acquiring (subject to financing) a farm-in interest in an onshore oil field which was most recently tested at over 2,000 bopd of sweet 20 degree API oil from its discovery well.
Pan Minerals has invested nearly US$3.5 million to date in the pursuit of farm-ins on proven oil fields in West Africa and the Solo's additional investment will assist in the completion of these arrangements. Once financing is in place Pan Minerals expects to conclude the farm-in arrangements and commence the recompletion of the discovery well and its tie-in to local oil export infrastructure. Subsequent activities will include additional development wells and may potentially see the drilling for deeper exploration targets.
Neil Ritson, Solo's CEO, commented:
"As we noted previously Solo's Board is familiar with the onshore oil field being sought by Pan Minerals. Given the progress made towards concluding finance for field development Solo has elected to increase its participation. For commercial reasons, the details of the opportunities must remain confidential at this stage."
