Solo has exchanged its shareholding in Pan Minerals Oil and Gas AG for a direct holding of 15.9% in Burj Petroleum Africa Limited, a private UK registered company created with the purpose of participating in the current marginal field licensing round in Nigeria. Burj Africa has partnered with Mr. Phil Mulacek the founder of InterOil Corporation which has been credited with one of the most significant natural gas discoveries in Asia in the past 20 years.
Burj Africa, together with its partners, Global Oil and Gas and Truvent Consulting, has made application for two marginal fields in the current marginal field licensing round in Nigeria. These two adjacent fields contain a total of 10 wells that were drilled by an international major. These fields are believed by Burj Africa based on internal estimates to contain proven and possible recoverable oil reserves of 59.3 million barrels (13.5 million barrels net to Burj Africa after royalty).
Solo has also entered into an agreement to increase its investment in Burj Africa. Solo will acquire an additional 5% holding in Burj Africa at closing through a payment of US$200,000 in cash and, in due course, the equivalent of US$300,000 in 39,750,000 new Ordinary Shares at an issue price of 0.51 p per share. Upon completion, Solo will hold a total interest of 20% in Burj Africa.