Solo Oil Drilling Report Stirs Activity

PUBLISHED: 08 Feb 2012 @ 02:10 | Comments (0) | More info about Lou Gutheil

Solo Oil Plc (LSE:SOLO) released an updated drilling report this morning for its Ntorya-1 exploration well. The Ntorya-1 well is in the Ruvuma Basin in Tanzania.

The company announced that the well has been drilled to a depth of 2,500 metres, but without reaching sandstone reservoirs as expected. A prior drilling report released less than 2 weeks ago anticipated reaching reservoirs at a depth of 1,800 – 1,900 metres. The fact that sandstones were encountered from depths of 2,300 to 2,500 metres seemed to offer little hope of achieving the company’s target goals, as the company announced that wireline logs and seismic surveys are being recorded to determine the viability of additional drilling.

Executive Director Comments

Executive Director Neil Ritson observed that “we are clearly still establishing the accurate correlation between the seismic and well stratigraphy. Additional evaluation of these well results will I am sure be key in helping to unlock the potential (of this well).”

Market Reaction

Solo share price has fallen by over 31% on a volume of 220 million shares by mid-afternoon.

Other News

The plans for expansion are underway in Solo by investing in oil production based in Canada, along with plans to strengthen their progress on the Mina El Carmen block in Argentina. This has been accomplished by enabling to extract £750,0000 from their £10 million equity line facility held with Dutchess Opportunity Cayman Fund.

Company Spotlight

Solo Oil invests directly and indirectly in projects involved in the exploration, development, and production of gas and oil in Europe, Africa, and North & South America.

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