Solo today announces that it has exchanged its shareholding in Pan Minerals Oil and Gas AG (“Pan Minerals”) for a direct holding of 15.9% in Burj Petroleum Africa Limited (“Burj Africa”), 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 (NYSE: IOC) 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.
Solo has also obtained the right, at its election, to convert the equity position in Burj Africa for a participating interest directly in the JV with Global in Nigeria. Terms of which are to be determined based on an independent third party valuation at a later date.
Solo will participate in the technical decision process with Burj Africa and Global, being represented on all relevant committees. Global will be the designated operator of any operations carried out by Burj Africa.
The holding cost of Solo’s shares in Pan Minerals is currently equal to the acquisition cost of those shares, approximately £800,000. Following the transaction to convert those shares to a holding in Burj Africa and the acquisition of additional Burj Africa shares the total holding value in Solo’s accounts will be approximately £1.1 million.
About Burj Africa:Burj Africa was created to pursue marginal field opportunities in Nigeria. With its joint venture partners, Truvent Consulting, an indigenous Nigerian oil and gas development company, and Global Oil and Gas a company founded and controlled by Phil Mulacek, Burj Africa has completed an application for two marginal fields in the current marginal field licensing round.Source: Burj Africa
About Phil Mulacek:In 1997 Mr. Mulacek founded InterOil Corporation, a New York Stock Exchange listed oil and gas development company, which was responsible for the discovery of the Elk-Antelope gas fields onshore in Papua New Guinea (“PNG”). Mr. Mulacek’s team is credited with discovering over 2 billion barrels of oil equivalent in PNG. InterOil has subsequently partnered with TOTAL to develop Liquified Natural Gas projects in PNG. Mr. Mulacek controls 15% of Burj Africa and sits on its Board of Directors.