It’s been a fantastic few weeks for Solo Investors with the recent news of the results of the petrophysical analysis of the Ausable#5 well in South Western Ontario operated by its Joint Venture partner Reef Resources Limited.Results are showing the presence of 72 metres of net hydrocarbon bearing pay in the main producing intervals. The tiddler has invested astutely. “In April 2010, the Company agreed commercial terms of a $1,650,000 CAN participating loan agreement to Reef for financing the development of a proven oil and gas production asset in Ontario. Solo receives 60% of net production revenue post tax until loan repayment and 50% net earnings thereafter from the funded developments.”
There should be little doubt that Ausable#5 will go on production as it is in close proximity to the producing Ausable#1 well and the latest company epistle announced today that Reef has indicated it plans to carry out flow testing on Ausable #5 and that the well is expected to be on production within six weeks. Reef has also announced its plan to prepare for the drilling of four additional wells in order to advance the development of the long-term Enhanced Oil Recovery and Natural Gas Liquids Program.
With a massive percentage of the shares being held by private investors in various Nominee accounts it looks and feels like that there is going to be a share consolidation. There are over 2 billion shares in issue the news or views from our sources indicate that a consolidation AND a further placement are on the cards! How will this effect the private investor? Well it should be seen as a near term negative but good news for the long-term health of Solo whose objectives are to “acquire and develop a diverse portfolio of direct and indirect interests in exploration, development and production-oil and gas assets which are based in the Americas, Europe and Africa.” Never one to miss an opportunity “David Lenigas” will surely push for further funds on the back of this success. Consolidation will happen here.
Keep your eyes on them they have performed rather well this year.