Solo Oil has paid Reef Resources Ltd (Reef) the Stage 1 loan payment of C$750,000 as per the agreement announced on the 29th April 2010, pending the completion of the technical and legal due diligence which is expected to be by the 19th May.

The Reef team are currently executing on the Stage 1 work program to commence oil and gas production. Solo understands from Reef that the anticipated production re-start date is on or before June 1, 2010.

About Reef Reef is an incorporated oil and gas exploration and production company with existing assets in Ontario and ongoing negotiations and options for the acquisition of other assets in Canada. Reef's strategy is to build shareholder value through internally generated exploration and development drilling through selective acquisitions, joint ventures and farm-ins. Reef's primary asset in Ontario has estimated proved and probable reserves of 35,533 boe and 159,370 boe respectively as assessed by a qualified reserves evaluator in July 2009. The Ontario production asset is currently shut-in awaiting development financing.

Tags: Solo Oil