Primorus offloads 5% Horse Hill holding to Solo Oil

Primorus Investments confirmed on Friday that it has completed the disposal of a 5% interest in well appraisal and development company Horse Hill Developments Limited (HHDL) to Solo Oil PLC.

AIM-traded company Primorus Investments will now receive £650,000 in cash and 9,973,011 ordinary Solo Oil shares of 0.2p, with the shares expected to be admitted to trading on or around 15 March.

Alastair Clayton, executive director of Primorus Investments, said: "We are pleased to have concluded this transaction as part of our on-going portfolio management strategy. We now have realised significant funds for further investment in our portfolio and look forward to updating shareholders soon on the progress, especially as several of our investments move rapidly towards IPO's."

HHDL’s Horse Hill-1 well is expected to commence in Q2 and is expected to lead to a declaration of commerciality after showing a potentially commercial rate of 320 barrels of oil per day.

Neil Ritson, executive chairman of Solo Oil, said: "With testing due to commence shortly at Horse Hill we are pleased to have increased our interest in this exciting opportunity and look forward to more news as operations get underway later this month."

According to a statement from the company, Solo Oil will now hold "a 15% interest in HHDL equivalent to a 9.75% interest in the Horse Hill licences, PEDL137 and PEDL246, and the Horse Hill oil discovery."

Primorus, meanwhile, will hold a 5% interest in HHDL equivalent to a 3.25% interest in the licenses and oil discovery.

As of 1339 GMT, Primorus Investments’ shares were up 3.33% at 0.16p, while Solo Oil PLC’s shares were unchanged at 3.25p.