Solo Oil JV making winter progress in Canada

published 24 January 2012

Reef Resources, the operator of the Ausable field in Canada in which AIM-listed Solo Oil has a stake, said significant progress has been made on the project, but warned that bad weather could slow things in the first two months of 2012.

In an update on its activities in South Western Ontario, Canada, Solo Oil's joint-venture partner Reed said things are ticking along on a number of field activities associated with the ongoing development of the Ausable Field Gas Recycling and Enhanced Oil Recovery project.

Specifically, the recently drilled North Airport number one (#1) exploration well is expected to reach its target point by early March.

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Meanwhile, a pump has been successfully installed in the Ausable #5 well. The flow stabilisation phase is expected to take a further 10 to 14 days, after which an update will be given.

The Ausable #1 well continues to produce at rates of up to 30 barrels of oil per day, but production rates have been choked back until the gas injection phase of the enhanced oil recovery is underway.

Arnie Hansen, Reef President said: "We have been making very substantial progress so far this year, however, January and February are typically the worst weather months and although current forecasts are moderate some delays may occur."

The share price of Solo Oil fell by 0.08p to 0.73p on the morning of the update. Solo Oil has a 38.1% stake in the Ausable asset.