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Solo Oil continues negotiations over Dutch deal terms

Solo revealed its plans to relaunch as Scirocco Energy alongside a reverse takeover back in October, talks presently continue over the deal terms

Solo Oil PLC - Solo Oil continues negotiations over Dutch deal terms

Solo Oil PLC (LON:SOLO) has told investors that talks with ONE Dyas over a possible acquisition are continuing with a view to renegotiating terms to enable the deal to proceed. 

In a statement, the junior oiler said that in support of the potential acquisition it continues to assess all debt and equity funding options available to the company.

Solo also said it continues to progress a number of complementary business development opportunities, in line with its European gas strategy.

READ: Solo Oil rings changes with Dutch deal

With cursory caution, the company added: “The board reiterates that there can be no guarantees that the proposed transaction will proceed and intends to provide a further update to market as soon as possible.”

In October, Solo unveiled a series of major changes including a €32.1mln asset acquisition, constituting a reverse takeover, new management and a rebrand.

The company, soon to be called Scirocco Energy Plc, has agreed a deal to acquire natural gas fields in the Dutch section of the North Sea from ONE-DYAS.

It will pay the Netherlands firm €30.1mln upfront, plus €2mln deferred, with the deal funded by a new €18mln loan financing provided by Mercuria Energy Group and a planned £20mln equity raise to be run by brokers Peel Hunt and Canaccord Genuity.

Solo’s shares have been suspended to facilitate the transactions, though for context the market value of the company prior to the deal was £15.29mln.

Quick facts: Solo Oil PLC

Price: 1.025 GBX

Market: AIM
Market Cap: £6.64 m

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