Solo Oil soars as JV partner upgrades reserves total

Solo Oil has seen its shares rise sharply after its joint venture partner Reef Resources announced an 85 per cent increase in proven plus probable (P2) reserves to 348,700 barrels of oil, gas and liquids from 189,000 last year.

The petroleum initially in place was estimated at 7.84 barrels.

The current P2 net present value (before tax) at a 10% discount rate evaluation for the year ended July 31st is at $7.86m, a 98% increase compared to a year earlier.

Total proven and probable reserves are 324.2m stock tank barrels of light and medium oil, 106.1m cubic feet of gas, and 6.8m stock tank barrels of natural gas liquids.

Taking into account possible reserves as well the figures stand at 531.8m stock tank barrels of light and medium oil, 140.4m cubic feet of gas, and 9.6m stock tank barrels of natural gas liquids.

Stated Arnie Hansen, President and Chief Executive Officer of Reef, said: "We are very pleased to see further confirmation of the value of the Ontario oil and NGL play. We continue to focus on bringing this highly attractive asset into production and cash flowing status. We appreciate the patience that our shareholders have demonstrated in the company and intend to reward this patience in the coming months."

NR