Having interviewed, and hence had to cling onto every word spoken by Neil Ritson, Chairman of Solo Oil (SOLO) for UK Investor Magazine, this Bull Call Of The Day has more than just the technicals behind it,
Knock me down with a feather. Following the hype the placings by the merry band of AIM listed Horse Hill participants is now underway. There has been no announcement yet but as I write...
David Lenigas is tweeting his upset with James Parter for having suggested that Solo Oil (SOLO) is a sell and has suggested that Mr Parter is likely to be sacked. Let me make this 100% clear to my friend Mr Lenigas and to other CEOs out there who think that I sack anyone for having an opinion. I will NEVER do that.
Solo Oil (SOLO) is one of a few AIM listed oil companies where there is activity on most fronts. The hot front to the south sees Solo progress gas exploration in Tanzania. The cold front in England sees Solo progress its oil exploration at Horse Hill. All eyes are on these two beasts after resource upgrades and the share price has rocketed to 0.6p making Solo worth £30 million. But there are great reasons to think this will at least halve by 2016.
Just over two months ago, Gary Newman (a little ambivalently) picked Solo Oil (SOLO) as his runner in the Horse Hill race. His reasoning had less to do with Horse Hill and more to do with the appraisal of the Ntorya gas condensate discovery in Tanzania, in which Solo retains 25%. As it turned out, this was another good call by Gary, albeit a reluctant one! At the start of the month, Solo announced a sizeable upgrade to the reserves at Ntorya-1 and the company’s share price hasn’t looked back. From an end of day close of 0.38p on September 3rd, this stock hit an intraday peak of 1.2p and now trades at 0.98p, last seen. This values Solo at £46.56million. Now that the company has secured a c.$8.6million funding package, the question is can Solo build on its recent fantastic gains?
I’ve been watching all the excitement surrounding the drilling of the Horse Hill 1 well in the UK, but personally am not convinced! I find myself wondering why NASDAQ-listed company Magellan Petroleum relinquished a 65% share of the PEDL137 license (which contains the Horse Hill prospect) simply in return for the farminee drilling it prior to its expiry date on September 30 2014.
Infill seismic survey at the Ruvuma natural gas acreage, onshore Tanzania, is set to finalise locations for new exploration drilling and accelerate commercial development.
While it may be argued successfully that the daily share price chart of Solo Oil is not one which at first glance may rev people up to pile in on the long side, it may be the case that the Tanzania focused resources group is enough of a slow burn technical contender to offer adventurous traders a punt which could double over the next 3-4 months.
