Solo Oil plc (LON: SOLO), a natural resources investment company focused on acquiring and developing a diverse global non-operated portfolio of strategic oil and gas assets, today announced that the Company has agreed to enter into a conditional sale and purchase agreement to dispose of its entire 30 per cent. interest in PEDL331 on the Isle of Wight to UK Oil and Gas plc (LON: UKOG) for a total consideration of £350,000.
Oil and Gas plc has agreed to acquire Solo’s 30 per cent. interest in IOW for a total consideration of £350,000. With an effective date of 11 December 2018, the total consideration will be satisfied through the issue of 17,989,326 new ordinary shares in UKOG and cash of £90,450. The Consideration Shares are calculated based on the 5-day volume weighted average price to 10 December 2018 of 1.4428 pence.
Based on the £350,000 consideration, Solo has made an investment return of 2.25 times its historical investment in IOW.
Completion of the disposal, which will be announced in due course, is conditional upon the usual Oil and Gas Authority consent.
Solo Oil plc Managing Director, Dan Maling, commented:
“This transaction is fully in line with our stated strategy and provides further evidence of our ability to monetise assets within our portfolio and make strong returns on our investments. This asset was not core to our future strategy and this disposal provides a point of monetisation whilst also reducing the burden of future project related cash calls during the ongoing planning phase. The transaction further strengthens our balance sheet ensuring we are well funded for commitments on the core projects within our portfolio.”