11th Jun 2015 14:34
LONDON (Alliance News) - Solo Oil PLC shares fell on Thursday after it said its pretax loss narrowed in 2014 and reiterated that the company's stake in the Ruvuma PSA in Tanzania is its "most significant asset" that it will continue to develop.
Solo Oil shares were down 3.7% to 0.525 pence per share on Thursday afternoon.
Solo Oil, which does not generate any revenue, reported a pretax loss of GBP1.8 million in 2014, narrowing from a GBP3.1 million loss, as impairments fell to GBP400,000 from GBP1.7 million and administration expenses were trimmed to GBP1.1 million from GBP1.5 million.
Solo Oil is involved in two projects in Tanzania, two projects in the UK including the recent oil discovery in the UK Weald Basin near Gatwick Airport, in which it holds a 10% stake, and another on the Isle of Wight, with other projects in Canada and Nigeria.
"The company's 25% stake in the Ruvuma PSA continues to represent the most significant asset in the company and its further development is being vigorously pursued. We look to realise the full potential of our investment in Ruvuma over the next few years," said Solo.
"The acquisition of a stake in the Kiliwani North Development is expected to provide ongoing revenue once gas sales commence in 2015," it added. The Kiliwani North Development is a joint venture with fellow listed Aminex PLC.
"The Horse Hill-1 well has had a significant impact on the portfolio, containing both a potentially commercial conventional Portland Sandstone discovery and a major entry into a new unconventional play in the Jurassic. The ongoing UK 14th Landward Licensing Round may also lead to additional opportunities in the UK," said the company.
The Horse Hill project is owned by Horse Hill Developments Ltd with a 65% stake and Magellan Petroleum Corp with 35%.
UK Oil and Gas Investments holds a 30% stake in Horse Hill Developments, whilst Doriemus PLC, Stellar Resources PLC and Alba Mineral Resources PLC holds a 10% stake in Horse Hill Developments, with Evocutis PLC holding a 2% stake and the balance is owned by Angus Energy, in which UK Oil & Gas has a 6% stake.
By Joshua Warner; [email protected]; @JoshAlliance
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