Solo Oil Share Discussion Threads

[whoppy] 15/10/2018 12:31

simon8 - totally agree. Might sell my Solo and buy UKOG.

[edgein] 15/10/2018 12:30

Whoppy,

You'll find that that is likely to be Ntorya that will be SOLO's first material revenues. Hopefully they won't be holding UKOG by their next RNS. Its gonna be long term before HH is developed, well beyond the LPT. Who knows with AEX's new partner and their carry perhaps it'll be Ntorya that gets into production first. The Tanzanians have had enough time already to get the development licence sorted and they need the gas. SOLO may sell the 25% before production for multiples of the current cap, we'll just have to wait and see. But first turning a large % of the cap into cash at present is a very good move.

Regards,
Ed.

[simon8] 15/10/2018 12:20

I can’t believe we are selling UkOG now when it could possibly head rapidly north on good results. Having taken part in last share issue I feel seriously let down by BOD - NR type management still with us. Below reportable 3% now so we will not know if we hold and shares or not until next official statements. If UKOG go through roof now our BOD will have a massive amount of explaining to do.

[whoppy] 15/10/2018 12:16

Oooh yes I see. About 50 million sold, 162m left. David Lenigas twitted they had less than 100 million. I don't want them to sell anymore. I want them to hold for the KL4 results and production. Will be our first asset that produces any meaningful revenue.

[edgein] 15/10/2018 12:07

Come on,

They're banking a very healthy profit you mean of 45%+ on any shares sold above 1.92p, which means around 1% so far. I hope they get as much as that for the remaining 2.91%.

"Transaction Summary

For a total consideration of GBP4.5 million UKOG has agreed to acquire Solo's 15% shareholding and loan in HHDL. With an effective date of 28 August 2018, the total consideration will be satisfied through the issue of 234,042,221 new ordinary shares in UKOG ("Consideration Shares"). The Consideration Shares are calculated based on the 10-day volume weighted average price to 24 August 2018 of 1.92 pence.

Based on the GBP4.5 million consideration Solo has made an investment return of 50% on the additional 5% it acquired in February 2018, and 45% on its total investment in HHDL since February 2014."

So breakeven on the sale of the asset would be around 1.3p per UKOG share, hopefully they'll be all out before that happens. Around 1/4 of the shares have been sold at above this. There might be another UKOG spike to sell more into we'll just have to wait and see.

Regards,
Ed.

[edgein] 15/10/2018 12:01

Excellent news, can just sell under stealth now. Hopefully the ensuing cash mountain can and will be focused where the main action ahead lies, CH-1.

Regards,
Ed.

[come on] 15/10/2018 11:52

Well there's the rns, less than 3% now, seems silly in my opinion to have sold, as they only appear to have sold just above what they got them for

[edgein] 15/10/2018 11:09

Cperkin,

Absolutely, and if CH-1 comes in updip to those other wells you can double that and most likely start thinking about 2P.

Whoppy, hopefully soon fella, hopefully soon.

Regards,
Ed.

[whoppy] 15/10/2018 08:37

Still no RNS to say Solo have been selling UKOG. Didn't think they were myself.

[cperkin] 13/10/2018 09:48

UKOG and SOLO, business is business and solo have a much larger project to fund. The current connected volume of oil @ UKOG is 7 to 11 million barrels with a recover rate top end expected at 10% so 1.1 million Barrels of oil.

Solo own 25% of 126 million barrels of oil equivalent in Ruvuma 2C recoverable not gross in place.

They are simply concentrating on a much bigger project and turning a profit in the process. UKOG and SOLO still have their wedding rings on in the IOW licence.

Best of luck to both!

[bobdown2] 11/10/2018 19:23

Just an observation...and correct me if this has already been covered. Why did solo not issue an rns about the successful test results when ukog and alba did. Along the lines of we are pleased to announce...successful test etc and mention of the holding... hopefully it will all come out in the wash for the best.

[barnetpeter] 11/10/2018 19:03

Solo going to 1 penny I think. Another big fall today. The trouble is no one wants these investment companies. They don’t pay out anything to shareholders; all the cash is paid in salaries. Solo now have plenty of cash but to whose benefit? The stake in ukog was a big plus...

[stonefold] 11/10/2018 17:16

whoppy,
Yes they are in good financial health and are even owed approx. $300,000 from gas sales from Kiliwani.
For the latest estimates of SOLO's future spending divide ARA's spend figure by three in the following presentation.

[whoppy] 11/10/2018 16:34

Agree with that StoneFold but Solo already have a strong balance sheet of £3m in cash and no debt.

[stonefold] 11/10/2018 16:09

People with a genuine interest in SOLO (as opposed to sulky UKOG investors who are talking down other shares), will know:

What SOLO's primary investment is.

Approx. amounts of cash that SOLO will need (if SOLO maintains its level in that investment).

That the timetable for developments and payments are in the hands of third parties, and there may not be much public or private forewarning of when "soon" becomes "now". So it would be prudent to prepare finances earlier rather than later, by either setting up a loan facility with the shares as security or to sell shares into peaks of high demand.

The importance of being prepared for cash-calls was noted in SOLO's RNS 06-08-2018.


Then from SOLO's RNS 30-08-2018

"... Importantly, we will retain the option to monetise our shares in UKOG at the appropriate time. ..."

"... The Consideration Shares will be held available for sale. ..."


If UKOG investors don't like PRIM, GUN and SOLO selling UKOG shares then perhaps they should moan to the UKOG board for buying additional stakes in HHDL and paying for that with shares.

Both the Weald Oil plays and the Tanzania Gas plays are potentially rewarding short-medium term near production investments.

[whoppy] 11/10/2018 15:29

No mention here of selling out it's stake in UKOG. Dan says he will demonstrate more returns through UKOG. Seeing as the shares in UKOG were converted to Solo at 1.93p and the share price is still at 1.9p there isn't a return worthwhile selling. Makes no sense.

[edgein] 11/10/2018 15:06

Probably because they're not going to sell them all straight away. They'll likely sell into those updates. But it'll be interesting to see how long they remain shareholders. Fingers crossed not very.

Regards,
Ed.

[whoppy] 11/10/2018 15:03

So why did Dan Maling say this on the 23rd September?

Solo's Managing Director, Dan Maling, commented:

"We are pleased to announce the close of this transaction ahead of the key Kimmeridge testing phase at Horse Hill. Solo remains a supporter of the project as we continue our exposure through our 4.2% stake in UKOG. We look forward to more updates from UKOG as the well testing continues."

[edgein] 11/10/2018 14:45

Stephen,

When you start to research SOLO you'll find that after the placing and open offer they're significantly in the money after dealing with the small debt. They now have over £4.5m of UKOG shares to sell. Hopefully before that bubble bursts. You can work out the current market value of HH by using the price they paid for it and yes its substantially below their market cap. Because of the lack of 2P. I'm hoping that bubble doesn't burst until SOLO are well clear and gonna use their money where they can multiply it, at Ntorya of course. SOLO is an investment company and at last they're making money on their investments, about time too thanks to the new management and change of direction. They'll probably sell or jv Ntorya after NT-3/CH-1. I made lots of money on UKOG from 0.8p when there were only a few on us on the thread, but now alas its just over-bought.

Regards,
Ed.

[stephen2010] 11/10/2018 14:35

100% solo are dumping. TR1 The other day showed them well below the original 4.2% UKOG stake. Next TR1 will show them below the 3% threshold or out altogether. PI's have been shafted as the new board has totally changed their portfolio strategy. And what a terrible time to do it as UKOG is about to re-rate.

[whoppy] 11/10/2018 13:54

Nope, See RNS dated 3rd September where Solo paid off the loan facility to Rivorfort of £624,221 and became debt free before they sold their stake in Horsehill for shares in UKOG. They took UKOG share specifically for the Kimmeridge oil. Unless a chimpanzee is now running Solo and is dumping our UKOG investment before it's even got going, then Dan Maling has either misled shareholders, or the dumping is untrue.

Commenting on the convertible loan repayment, Managing Director, Dan Maling, said:

"As was indicated in our open offer document and announcement of 6 August 2018, the Company has now repaid all monies due under the Riverfort arranged convertible loan facility. The Company is now debt free and equipped with a strong balance sheet. Solo is well placed to continue with its monetisation strategy under the guidance of the new board."

[stephen2010] 11/10/2018 12:57

Only by dumping their UKOG holdings that your MD promised to hold on tight to, to keep exposure to UKOG's huge growth potential.

[whoppy] 11/10/2018 12:34

Solo are debt free though ?

[stephen2010] 11/10/2018 12:31

Feel sorry for all PI's here. Totally missled and shafted by the MD. Hope some of you's smelt a rat knowing that SOLO are in a dire financial position. Shame on you Dan the man