Solo Oil boosted by developments in farm-out discussions

Solo Oil shares moved higher on Tuesday morning after the company clarified that FirstEnergy Capital, which is acting for both Solo and Aminex, continue to actively discuss a farm-out of the Ruvuma production sharing agreement (PSA) and said that currently there are on-going discussions with over five interested parties.

Solo said that the farm-in discussions are expected to be concluded once the revised PSA terms associated with a variation of the current term of the licence are received.

The company is now awaiting formal approval from the Tanzanian government.

Neil Ritson; Solo Executive Director, said: "We at Solo remain of the view that a mutually attractive farm-out can still be concluded. The revised PSA terms, when approved, will allow the necessary additional seismic to be completed before drilling obligations become due and that will significantly increase the chance of further discoveries."

The share price rose 2.99% to 0.34p by 09:10.

NR