Diversified Gas & Oil

DGO has completed the recently announced Gas Gathering System acquisition in Pennsylvania and West Virginia for $7.7m. This moves integration of these assets into the company’s Midstream portfolio which increases market optionality and net cash margins and proves another value enhancing acquisition for the company. I am confident that the high quality management will continue to do deals that will add value to the company and confirm its ability to be a premium, dividend paying company in the sector and thus the shares are very attractive at these levels.

Solo Oil

Solo Oil interims and yet another RNS for shareholders to get their teeth into and also makes me think that the company is preparing for a deal as promised at the get go. A combination of non-core asset disposals, significant work at Kiliwani North-1, important progress made at Helium One including a Pre-IPO funding round and partnerships entered into with ‘top quartile’ service providers are all key moves.

If you add to that several management changes including Alastair Ferguson becoming Exec Chairman and later appointing both a new CFO and COO you can tell that the company means business. ‘ The company has made further significant steps in H1 2019 towards its strategic goals…and to prepare the company for a period of strong growth and value creation’. He continues by commenting on sales of non-core assets, providing a strong balance sheet to enable the board to execute its strategic vision focused on returning value to shareholders’.

I would be very happy to be in the position of a Solo shareholder and those who remember the initial mantra of the new board as they aimed to establish this company as a mid-cap E&P company underpinned by high quality assets and solid cash flow should realise quite how far they have come, but this is just the start…