Solo has announced this morning that it has signed agreements with THREE60 Energy ltd and NRG Well Management Ltd to provide the company with an operational capability as it implements its strategy. The former will provide a range of specialist support services ‘throughout the full asset life-cycle’ whilst the latter brings engineering and project management solutions pretty much across the board in the global upstream oil & gas industry. Neither of these deals involve any cost to Solo.
These are interesting deals for Solo and whilst shareholders might have been expecting asset deals these two sign-ups open the door to potentially substantial acquisitions. This ‘zero cost alignment with top quartile operators’ probably wouldn’t have been done on spec and ‘support the execution of our strategy ‘.
Solo shareholders have waited patiently for something that will indicate how the strategy going forward will unfold, today’s announcement may not yet give the answer but I would strongly suspect that it won’t be long before they know at least part of the answer.
Independent Oil & Gas
IOG have given an update on the Harvey appraisal well in the UK SNS this morning. The well has reached TD and taken two 90 ft cores from the reservoir along with a full suite of wireline logs including pressure test and fluid samples as well as Vertical Seismic Profiling. Initial analysis of the wireline data demonstrates the presence of a 49ft gas column at the top of the reservoir.
There will now be detailed analysis of the data including the VSP leading to options for a potential Harvey development which will include the gas hub strategy dependent on its size. CER now have the option to acquire 50 of the Harvey licences for three months, that decision will be of significant interest but the strategy means a ‘low commerciality threshold’ which it might need.