Solo Oil has announced that it will now not exercise the call option with Helium One and has terminated plans to raise funds to complete that transaction.
As a result the oil explorer adds it has decided to withdraw the Notice of General Meeting contained in the Circular to seek Shareholder approval for the authority to allot shares to make the second stage investment into Helium One Limited.
Solo Oil according to the Board will continue to focus on the Company’s existing investments, including the Ntorya gas condensate discovery in Tanzania, the Horse Hill oil discovery and the initial 10% stake in Helium One.
“The Board considers the initial stake in Helium One to be a core investment of the Company with significant potential upside. Solo will therefore continue to play an important role in supporting Helium One as it progresses its strategic helium assets in Tanzania,” the company said in a statement.
Following the decision to withdraw the Notice of General Meeting the company says it will outline its future investment plans and strategy during the Annual General Meeting slated for later in the year.
Solo Oil has a 10% interest in Helium One Limited for a total consideration of £2.55 million and had an option to increase its investment in the company by a further 10%, for an additional investment of £4 million, which would have increase its stake to 20%.