Solo Oil Raise Funds for Tanzania Gas Project Development

Solo Oil on Wednesday said it has drawn down the first $1 million of a $5 million 3-year debt facility and the funds would be used to accelerate development of company’s Tanzania gas assets.

The Aim listed company also said that it has closed a placing of £760,000 at 0.95 pence per share and a conditional placing of £1.5 million at 0.95 pence per share which relates to a placing and an equity swap agreement with YA Global Master SPV, Ltd.

"Solo now has one of the strongest balance sheets in the company's recent history and this funding will be used potentially to accelerate our efforts in Tanzania in light of the recent upgrades at our Ruvuma gas and condensate project and will also be used towards further potential farm-ins and investments in the oil and gas sector, including applications in the UK 14th onshore licensing round, in accordance with the company’s stated investing policy," David Lenigas, the Company's Chairman, commented.

Earlier this month Solo Oil and Aminex (operator) announced that interpretation of seismic data has extended the potential of the Ntorya appraisal area and further increased resource estimate to 2.3 TCF by combining the Ntorya discovery with the adjacent Likonde prospect in its Ruvuma PSC in south-eastern Tanzania.