Solo Oil Ups Stake in Tanzania Ruvuma Basin

- Solo Oil Ups Stake in Tanzania Ruvuma Basin

Thursday, September 08, 2011
Solo Oil plc

Solo Oil announced an update on its plans for the drilling of an exploration well, Ntorya-1, in the Mtwara Block of the Ruvuma Basin PSA in Tanzania with its partners Tullow Oil and Aminex.

Further to the announcement on June 7, 2011, plans for the Ntorya-1 well have now been finalized with the all major services tendered and the Caroil-6 rig mobilization agreed to follow the current Aminex well Nyuni-2. The well will most likely be spudded in early November and is programmed to take 25 days to drill to a planned TD of 2026 meters.

Solo also announce that it has increased its stake in the Ruvuma Basin PSA from 12.5% to 18.75% in an agreement with Tullow in which Solo will assume the future obligations on the additional interest. Both Solo and Aminex have acquired additional interests in the PSA and Aminex will take over as operator from Tullow with immediate effect. Tullow will retain a 25% interest and will continue to support the joint venture with regional expertise and logistics.

The assignment is subject to final Tanzanian Government approval, which is expected to be granted shortly.

Solo Executive Director Neil Ritson commented, "The Ntorya-1 well, which is a follow up to the Likonde-1 well drilled in 2010, is an important further test of the largely unexplored onshore Ruvuma Basin. Both Solo and Aminex have a strong focus on Tanzania and by gaining a greater participation in the PSA will jointly be able to advance the work program more quickly. The long term potential is significant and we are very keen to continue the work started at Likonde as soon as possible."

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Solo Oil Updates Ausable Field Operations

- Solo Oil Updates Ausable Field Operations

Monday, August 01, 2011
Solo Oil plc

Solo Oil announced further updates of operations at the Ausable Field in South Western Ontario operated by its Joint Venture partner Reef Resources Limited.

Further to the announcement of July 12, 2011, Reef has informed the Company that the Ausable#5 well has been tied-in to the Ausable central production facilities and has been producing oil at variable rates since July 22, 2011 by means of a beam pump. Reef has indicated that the produced oil continues to foam with the completion fluids and that as a result it has so far not been possible to establish a representative production rate. The fluids used to acidize and stimulate the well have yet to be fully recovered. Reef is exploring alternative pumping strategies and has indicated that they will report further on progress shortly.

Work on recovering the frack tool left in Ausable#2 during work in 2010 has been started and fishing tools are being run in hole to make the first of several planned cuts in the tubing in order to retrieve the equipment resting across the production zone. These operations are expected to take one to two weeks to conclude.

Neil Ritson, Solo's Executive Director, commented, "The presence of moveable oil is very encouraging and we are pleased with the progress being made to bring both wells on to sustained production. We will further update shareholders as soon as additional information becomes available."

Solo currently holds a 23.8% working interest in the Reef Ausable properties and an option to increase its interest to 38.1% through co-investing a further CDN$1.5 million, with Reef, in the development of the Ausable and adjacent assets.

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Solo Oil to Take Stake in Ausable Field

- Solo Oil to Take Stake in Ausable Field

Tuesday, May 24, 2011
Solo Oil plc

Solo Oil has entered into a binding Heads of Agreement with Reef to earn a 38.1% direct working interest in the Ausable Field and surrounding properties in South Western Ontario.

Highlights:

• Production testing will soon commence on Ausable #5
• Ausable #5 contains 72 meters of net hydrocarbon bearing pay
• Further wells are planned along with expansion of the production facility during 2011
• To gain a 38.1% working interest Solo will:
  • Convert its existing Participating Loan of CDN $1.65 million into a direct working interest in the Properties, and
  • Invest up to an additional CDN $2.35 million in the Properties

Neil Ritson, Solo Executive Director, commented, "The initial facilities upgrade and drilling of Ausable #5 has provided proof of concept at Ausable in the last 6 months and Solo now has sufficient confidence to convert its existing loan to a direct participation in the Reef properties and to commit to co-invest with Reef in the further development of the field and the surrounding opportunities. This is an important watershed in the project and we look forward to reporting on it further as the year progresses."

Terms of the Working Interest Acquisition

• Solo will convert its existing Participating Loan to a direct working interest in the Properties at a rate of 1% interest per CDN $105,000.
• Solo will advance a further CDN $200,000 following execution of the Heads of Agreement on the same terms.
• These additional funds will be used for the testing and completion of the Ausable #5 well, the tie-in of the South Airport gas well to the Ausable Field production facilities and the return to production of the Ausable #2 well.
• Solo and Reef will, within 30 days, agree and sign a First General Conveyance Agreement totaling 23.8% direct working interest in the Properties. On signature of this agreement Solo will advance a further CDN $650,000 to the project.
• Upon execution of the conversion of the Participating Loan as envisaged in the Heads of Agreement, Solo has additionally agreed to pay CDN $2.5 million to purchase an additional 14.3% direct working interest in the Properties.
• This additional payment will be released against agreed work programs and budgets following execution of a Second General Conveyance Agreement and Joint Operating Agreement, and when Reef raises equivalent equity funding of CDN $1.5 million.

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