# Solo Oil signs agreements with THREE60 and NRG

- Link: https://www.directorstalkinterviews.com/solo-oil-signs-agreements-with-three60-and-nrg/412792557
- Published: 2019-09-11T07:07:10+01:00
- Author: Giles Arbor

**Solo Oil** (LON: SOLO), a natural resources investment company focused on acquiring
a balanced portfolio of production, development and exploration assets, has today
announced that it has signed agreements with THREE60 Energy ltd and NRG Well Management
Ltd to provide the Company with an operational capability as it implements its strategy.

**Agreement with THREE60**

Solo has entered into a Service Collaboration and Risk Sharing Model Agreement with
THREE60 Energy (https://www.three60energy.com/), a fast growing energy services 
group, to provide a range of specialist support services throughout the full asset
life-cycle. The agreement provides subsurface, engineering and facilities management
services in a flexible and cost-effective manner that ensure the Company is prepared
to deliver on its strategic production growth plan to over 5kboepd. The agreement
defines a model of risk sharing, that will minimise capital expenditure through 
incentive schemes linked to asset and production performance.

THREE60 has the broad industry capability and leadership experience to support Solo
as it transitions from an investment company to an operating company as per the 
Company’s new strategy announced in March 2019. The signing of the agreement is 
a significant step by Solo to create a cost-effective partnering model with industry
leading services companies allowing for flexible access to a full range of specialist
skills necessary to grow the organisation with zero exposure to fixed overhead. 
The risk sharing model under the Agreement provides alignment of the companies in
the outcome of asset performance and has been a proven operating model delivering
significant returns from mid to late life assets.

THREE60’s aim is to deliver value adding services for owners, developers and operators
of energy assets. Offering lean, fit for purpose technology driven solutions, in
subsurface, wells and facilities from exploration through to decommissioning. They
have demonstrable track record and extensive senior leadership experience on both
transition and transformation management supporting E&P companies grow and improve
their asset and production performance.

**Agreement with NRG**

In addition, Solo has also signed a Framework Agreement with NRG (https://nrgwellmanagement.
com/), which provides engineering and project management solutions to the global
upstream Oil and Gas Industry, and delivers a complete managerial and technical 
support package covering exploration, appraisal, development and P&A well life cycle.
This agreement will provide Solo access to NRG’s vast experience in executing top-
quartile drilling performance and global knowledge of well integrity.

There is no cost to the Company associated with putting in place either agreement;
costs are only incurred by the Company as and when agreed activities are performed
by either THREE60 and/or NRG.

**Commenting on the announcement, Alastair Ferguson, Solo Oil Executive Chairman
said: **

> “I am pleased to announce the completion of these agreements with both THREE60
> and NRG to provide Solo with the technical services to support the execution of
> our strategy and look forward to updating shareholders as progress is made. The
> structure of these agreements minimises the Company’s exposure to fixed operational
> costs and allow for the continued management of G&A exposure. We look forward 
> to working closely with these top-quartile service partners as we further progress
> towards the completion of our strategic production goals.”

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