1 Aug 2011 15:11
Immediate Release
1 August 2011
Solo Oil plc
('Solo' or the 'Company')
Ausable Field Update
Solo Oil plc today announces further updates of operations at the Ausable Field in South Western Ontario operated by its Joint Venture partner Reef Resources Limited ("Reef").
Further to the announcement of 12 July 2011, Reef has informed the Company that the Ausable#5 well has been tied-in to the Ausable central production facilities and has been producing oil at variable rates since 22 July 2011 by means of a beam pump. Reef has indicated that the produced oil continues to foam with the completion fluids and that as a result it has so far not been possible to establish a representative production rate. The fluids used to acidize and stimulate the well have yet to be fully recovered. Reef is exploring alternative pumping strategies and has indicated that they will report further on progress shortly.
Work on recovering the frac tool left in Ausable#2 during work in 2010 has been started and fishing tools are being run in hole to make the first of several planned cuts in the tubing in order to retrieve the equipment resting across the production zone. These operations are expected to take one to two weeks to conclude.
Neil Ritson, Solo's Executive Director, commented:
"The presence of moveable oil is very encouraging and we are pleased with the progress being made to bring both wells on to sustained production. We will further update shareholders as soon as additional information becomes available. "
Solo currently holds a 23.8% working interest in the Reef Ausable properties and an option to increase its interest to 38.1% through co-investing a further CDN$1.5 million, with Reef, in the development of the Ausable and adjacent assets.
Competent Person's Statement:
The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Solo Oil Plc who has 35 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.
For further information:
Solo Oil plc David Lenigas Neil Ritson
| +44 (0) 20 7440 0642 |
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish Felicity Geidt
| +44 (0) 20 7628 3396 |
Shore Capital Joint Broker Pascal Keane Jerry Keen
| +44 (0) 20 7408 4090 |
Pelham Bell Pottinger Financial Public Relations Mark Antelme Henry Lerwill | +44 (0) 20 7861 3232
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