For Immediate Release
14 June 2016
SOLO OIL PLC
("Solo" or the "Company")
Audited Report and Accounts for the Period Ended 31 December
2015
And
Notice of Annual General Meeting
Solo Oil plc announces that the Company's Annual Report and Accounts is
being posted to Shareholders today together with a Notice of the Annual General Meeting ("AGM") to be held at 11:00 a.m. on 28
July 2016 at the offices of Kerman & Co LLP at 200 Strand, London EC2R 1DJ. Copies of both documents will shortly be
available on the Company's website www.solooil.co.uk
Set out below are extracts of the Company's audited results for the financial year ended 31
December 2015.
For further information:
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Solo Oil plc
Neil Ritson
Fergus Jenkins
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+44 (0) 20 3794 9230
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Beaumont Cornish Limited
Nominated Adviser and Joint Broker
Roland Cornish
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+44 (0) 20 7628 3396
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Shore Capital
Corporate Broker
Joint Broker
Jerry Keen
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+44 (0) 20 7408 4090
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Bell
Pottinger
Public Relations
Henry Lerwill
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+44 (0) 20 3772 2500
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Cassiopeia Services LLP
Investor Relations
Stefania Barbaglio
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+44 (0) 79 4969 0338
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Chairman's Statement incorporating the Strategic Report
I am pleased to present the report of the Company's activities during the year ended 31 December
2015.
During 2015 Solo continued to advance its investments in Tanzania and the UK where its investments
in the Kiliwani North Development Licence, the Ruvuma PSA and Horse Hill Developments Limited ("HHDL") all made substantial
progress. That progress has continued in 2016.
Of particular note was the signature of the gas sales agreement for the Kiliwani North Development
Licence in January 2016 and the start of the commissioning of the Songo Songo gas processing plant with first gas from Kiliwani
North-1 reported on 4 April 2016 which will ultimately lead to Solo's first revenue from its investments in
Tanzania.
The planned testing at the Horse Hill-1 discovery in the Weald Basin onshore UK was undertaken in
February and March 2016 with exceptionally high oil flow rates being achieved in both the Kimmeridge Limestone and the Portland
Sandstone reservoirs. These confirm that a commercial discovery has been made and plans to develop the field will now
proceed.
Against the backdrop of very volatile commodity markets Solo has continued to advance its
portfolio and recently, raised its stake in the Kiliwani North project to 7.175% and has the option to raise its participation to
up to 10% as the project milestones are achieved by the operator. The Company is also in receipt of a 30% interest in a
newly awarded exploration licence, PEDL331, on the Isle of Wight in Southern England.
Investment Strategy
The Company has continued to pursue its original investing policy, as approved by the shareholders
in 2009, which is to develop a diverse worldwide portfolio of exploration, development and production interests, with the primary
focus being in Africa. At the time of writing Solo holds investments in Tanzania, Nigeria, the United Kingdom, Morocco and
Canada.
Highlights for the period include:
Tanzania
· Solo signed a sale and purchase agreement to
acquire a 6.5% interest in the Kiliwani North Development Licence ("KNDL") in Tanzania and agreed an option to acquire up to a
10% interest overall
· Kiliwani North-1 ("KN-1") well has been
physically tied in to the Songo Songo gas processing plant which is linked to the national pipeline to Dar es Salaam
· Expected initial offtake from the KN-1 well has
been increased by potentially 50% from 20 million cubic feet per day ("mmscfd") to up to 30 mmscfd (gross), significantly
improving the project economics and anticipated revenues
· A new Competent Persons Report ("CPR") for
Aminex plc on the gross resources in Solo's assets in Tanzania increased KNDL gross contingent resources to 28 billion cubic feet
("bcf")
· The CPR has attributed the Ntorya-1 discovery
with gross contingent resources of 70 bcf and locations have been selected for two appraisal wells; Ntorya-2 and -3.
· Following the year-end a Gas Sales Agreement was
executed with TPDC for a price of US$3.00 per mmBTU and subsequently first gas was achieved on 4 April 2016.
United Kingdom
· Horse Hill-1 ("HH-1") Portland Sandstone
discovery, is now estimated to contain 21 million barrels of oil ("mmbbls") initially in place
· The discovery made in the Jurassic Kimmeridgian,
Oxfordian and Liassic limestones and mudstones has been extensively studied and attributed with very significant resource
potential in separate studies by both Nutech and Schlumberger
· Following the year-end the HH-1 well was
tested. The Kimmeridge Limestones produced at natural flow rates of over 460 and 900 barrels of oil per day ("bopd") from
naturally fractured intervals in the Lower and Upper Kimmeridge respectively
· Pumped production, constrained by pump size, of
up to 320 bopd was obtained from the Portland Sandstone reservoir
· The Company was awarded a 30% working interest
in PEDL 331 on the Isle of Wight and announced its intention, with operator UK Oil and Gas Investments ("UKOG"), to pursue the
previously discovered Arreton-2 field as part of an initial work program.
Corporate
· During the year the Company raised a total of
£2.7 million before financing costs through the allotment of 504 million shares in private placements at a weighted average price
of 0.54p.
Tanzania, Ruvuma Basin
Solo holds a 25% interest in the Ruvuma Petroleum Sharing Agreement ("Ruvuma PSA") in the
south-east of Tanzania covering an area of approximately 3,447 square kilometres of which approximately 90% lies onshore and the
balance offshore. The Ruvuma PSA is in a region of southern Tanzania where very substantial gas discoveries have been made
offshore in recent years and where gas has also been discovered onshore and along the coastal islands at Ntorya, Mnazi Bay and
Songo Songo Island.
Solo's key asset in the Ruvuma PSA is the Ntorya gas-condensate discovery, made in 2012 and
operated by Aminex plc ("Aminex"). The Ntorya-1 well reached a final total depth of 3,150 metres and a gas zone between
2,663 and 2,688 metres was tested in June 2012. Flow testing on a 3.5 metres zone at the top of the gross 25 metre gas
bearing interval produced at a maximum flow rate of 20.1 million cubic feet per day ("mmscfd") and 139 barrels per day ("bpd") of
53 degree API condensate through a 1-inch choke. Following the completion of the test sequence the well was suspended as a
discovery for subsequent additional testing or production.
An infill 2D seismic programme around Ntorya-1 totalling 181 kilometres was acquired in 2014. The
bulk of the relevant legacy seismic data in the area was also reprocessed. This new and reprocessed seismic data quality was
markedly improved and a comprehensive remapping exercise has been undertaken.
Interpretation of the new 2D seismic lead to a re-estimation of the discovered and prospective
resources in the Likonde-Ntorya area and was subsequently audited by Senergy (GB) Limited ("LR Senergy") who issued a Competent
Person's Report ("CPR") in May 2015. LR Senergy estimated that Ntorya contains a gross 158 bcf of proven gas in place, of
which they attribute a gross 70 bcf as best estimate contingent resources. Overall in the Ruvuma PSA, LR Senergy estimate
gross 4.17 trillion cubic feet ("tcf") of discovered and undiscovered gas in place. Contingent resources are expected
to be converted to reserves once a commercial development and export scheme is approved.
The partners in the Ruvuma PSA are planning the drilling of at least one appraisal well in order
to firm up these resource volumes and to commence gas sales negotiations. Two appraisal well locations have been selected
and final rig selection and associated contract discussions have been finalised. It is anticipated that the first of these
wells could be spudded before end 2016. The selected drilling rig is now located at the Ntorya-1 well site and is available
for immediate use.
In order to fund the drilling of the appraisal wells Aminex and Solo have jointly agreed to look
for a potential farm-inee. Aminex announced in November 2015 that they had reached outline agreement with Bowleven plc to
farm-in to the Ruvuma PSA. Solo agreed to make a back to back arrangement with Aminex on the same terms, however, after
further discussions it was not possible to finalise mutually acceptable terms between the parties and the agreement was not
pursued. The Company remains open minded as to farmout arrangements, but will consider any offers on their
merits.
The recently commissioned, Chinese financed, 36-inch gas national pipeline that runs through the
Ruvuma PSA area from Mtwara to the Tanzanian capital, Dar es Salaam, was completed in early 2015 and is now in use transporting
gas from Mnazi Bay to Dar es Salaam. Solo estimated that there is significant demand in the Dar es Salaam area and
significant uncontracted ullage is available in the pipeline to receive likely gas production from the Ntorya
discovery.
Tanzania, Kiliwani North
In October 2014 Solo announced that it had agreed with Aminex to acquire up to a 13% working
interest in the Kiliwani North Development Licence ("KNDL") on Songo Songo Island. The Kiliwani North-1 ("KN-1") well was
drilled by Aminex and its partners in 2008 and discovered gas in a 60 metre column in the Lower Cretaceous. Based on well
test results Kiliwani North-1 is expected to be flowed at a rate of up to 30 mmscfd once on stream through a short tie-in
pipeline to the Songo Songo Island gas processing facility, and from there to the newly constructed 36-inch pipeline to Dar es
Salaam.
Solo acquired an initial 6.5% interest in the KNDL project for US$3.5 million in February 2015 and
subsequently announced its intention to increase its stake to 10% through the acquisition of three additional tranches of project
equity linked to project milestones at the Company's option. Solo's original stake of 6.5% was subsequently reduced by way
TPDC's back-in to the project for a 5% interest which reduced Solo's holding to 6.175%. Back-in by the State Company is
viewed as a positive move since it aligns the KNDL partnership with national objectives.
The condition precedent for further acquisition of project equity by Solo was the signature of a
gas sales agreement ("GSA") which was achieved in January 2016. The subsequently agreed tranche milestones were the
commencement of gas production which was achieved in April 2016, the receipt of first cash revenue and the declaration of
commercial (post-commissioning) gas production under the take-or-pay arrangements of the GSA. The first of these milestones has
been reached and Solo has increased its direct participation to 7.175%.
The GSA signed with TPDC for KN-1 gas contains payment guarantees in US Dollars ("US$") and is
linked to a price escalation formula commencing at US$3.00 per million BTU ("mmBTU") and rising from January 2016. The main
contract phase is a depletion contract with take-or-pay provisions for 85% of the daily minimum quantity of gas to be supplied,
initially set at 20 mmscfd. Payment for gas during the commissioning phase is based on the agreed tariff on an "as
supplied" basis and no minimum quantity is guaranteed under the contract. Commissioning of the Songo Songo Island gas
processing plant commenced in early April 2016 and is expected to be completed in the early third quarter 2016.
Independently verified gross gas in place was confirmed by LR Senergy in a CPR in May 2015.
LR Senergy computed gross mean gas in place of 44 bcf of which 28 bcf have been attributed as best estimate contingent resources.
These contingent resources will be converted to reserves once the GSA comes into full force on commercial gas production, which
anticipated to be in the third quarter of 2016.
UK, Weald Basin
In 2014 the Company acquired a 10% interest in a special purpose company, Horse Hill Developments
Limited ("HHDL"), which held the option to become operator and 65% interest holder in two Petroleum Exploration and Development
Licences, PEDL 137 and 246, in the northern Weald Basin between Gatwick Airport and London. HHDL subsequently completed the
farm-in to the two PEDLs to obtain the planned 65% working interest in September 2014.
The Horse Hill-1 ("HH-1") well commenced drilling operations in September 2014 and reached total
depth at 8,870 feet MD in November 2014. Evaluation of electric logs and other data collected from the well resulted in the
announcement on 24 October 2014 of a conventional Upper Portlandian Sandstone oil discovery. Subsequent analysis of the
Kimmeridge, Oxfordian and Liassic sections in the well indicated that there was also substantial in place oil in the naturally
fractured Kimmeridge Limestones and associated mudstones.
The PEDL 137 licence covers 99.29 square kilometres (24,525 acres) to the north of Gatwick Airport
in Surrey and contains the Horse Hill discovery and several other exploration leads. PEDL 246 covers an area of 43.58
square kilometres (10,769 acres) and lies immediately adjacent and to the east of PEDL 137.
In May 2015 the Xodus Group Ltd ("Xodus") produced an independent estimate of the gross discovered
oil in place ("STOIIP") of the Portland Sandstone discovery; increasing the previous operators internal view of 8.2 million
barrels of oil ("mmbbls") to 21.0 mmbbls. On the basis of this it was agreed to conduct a flow test of the HH-1 well to
establish the feasibility of a commercial development of the oil estimated to be in place in the reservoir.
During drilling it was also observed that the Kimmeridge limestones and surrounding mudstones
contained oil and following the completion of the drilling of the well, extensive geochemical and electric log analysis was
conducted which showed the Kimmeridge formation was mature for oil generation. Solo and its partner in the license, UK Oil
and Gas Investments plc ("UKOG"), contracted NUTECH Inc. ("Nutech"), an industry specialist in tight reservoir analysis, to
conduct further detailed petrophysical evaluation of the electric logs. This work resulted in the announcement in April
2015 of a potentially significant play with estimated oil in place of over 150 million barrels per square mile.
The results of the work by Nutech have subsequently been independently verified for UKOG in May
2015 by Schlumberger. Schlumberger's estimate of oil in place in the Kimmeridge, Oxford and Lias mudstones and limestones
is approximately 255 million barrels per square mile. This significant oil play in the Kimmeridge opens up large areas of
the Weald Basin that may have potential for oil production, not limited to the PEDL 137 licence area where the Horse Hill
discovery is located.
Based on the observations from Nutech and Schlumberger it was agreed to test the Upper and Lower
Kimmeridge Limestones during the testing of the Portland Sandstone discovery. Approval for the test was granted in late
2015 and the tests commenced in early February 2016. Tests lead to naturally flowing oil rates of the Kimmeridge Limestones
which are summarised in Table 1 below. The Portland Sandstone was placed on pump to stimulate flow and achieved a maximum
stable rate in excess of 300 bopd. These flow rates substantially exceeded the expectations for the well and rank alongside
some of the highest rates ever achieved on test for any UK onshore well.
Table 1: Summary of HH-1 Test Results
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Zone
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Maximum
instantaneous oil rate
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Stabilised dry oil rate ***
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Perforated interval
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Depth below surface
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bopd
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bopd
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feet
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metres
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U. Portland*
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360
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323
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103
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615
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U. Kimmeridge **
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1008
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901
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88
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840
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L Kimmeridge **
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700
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464
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80
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900
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Total
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2068
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1688
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271
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Notes:
* flow rate limited by pump stroke rate capacity
** natural flow
*** average over 20 hours aggregate
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The Company is awaiting proposals from HHDL on the next phase of operations at Horse Hill, but the
Company sees significant potential for commercial development of both the Portland and Kimmeridge intervals.
UK, Isle of Wight
In October 2014 Solo teamed up with two of its Horse Hill partners, UK Oil and Gas Investments plc
("UKOG") and Angus Energy Limited to make an application in the UK 14th Landward Licensing Round. The
application was made for a 200 square kilometre onshore block in the south and central portion of the Isle of Wight, adjacent to
UKOG's existing offshore licence which contains an undrilled prospect that is considered to lie both on and offshore the south
coast of the island and additional potential onshore in the north-east of the block around the previously drilled Arreton
wells.
The UK Oil and Gas Authority ("OGA") advised in December 2015 that it intended to award the
licence to the UKOG-Solo-Angus partnership as PEDL 331. The licence was subsequently confirmed in 2016 and Solo holds a
non-operated 30% interest. UKOG, as operator, commissioned analysis of the existing data in the new licence area from Xodus
who conducted new independent volumetric analyses on the historic Arreton-2 and other adjacent wells. Based on that work
Arreton-2, originally drilled in 1974 but not tested, is now considered to be a discovery well on the Arreton Main Field.
When taken together with the adjacent prospects Xodus has calculated a P50 gross oil in place estimate of 219 mmbbls in
conventional reservoirs within the Purbeck, Portland and Inferior Oolite limestone reservoirs at Arreton. Arreton Main is
considered by Xodus to contain most likely (P50) contingent resource net to Solo's interest in PEDL 331 of 4.7 mmbbls.
UKOG has commenced discussions with the local planning authorities and expects to seek regulatory
consents to appraise the Arreton Main oil discovery in the coming years.
West Africa, Nigeria
In 2013 Solo made an investment into a Swiss private company, Pan Minerals Oil and Gas AG ("Pan
Minerals"), in order to assist Pan Minerals in progressing various opportunities in West Africa where Solo hopes eventually to
take an equity stake in a West African oil producer with onshore oil assets. At the beginning of 2015 Solo held a 19.9%
interest in Pan Minerals.
Through its activities, funded by Solo's 2014 investment, Pan Minerals gained an opportunity to
invest in Burj Petroleum Africa Limited ("Burj Africa") a company which had applied for various undeveloped fields in the 2014
Nigerian Marginal Fields Bid Round ("Marginal Fields Round") along with joint venture partners Global Oil and Gas ("Global") and
Truvent Consulting. Solo subsequently announced in April that it planned to exchange its 19.9% shareholding in Pan
Minerals for a direct 15.9% in Burj Africa and make a further investment of US$500,000 in cash and shares to increase its
shareholding in Burj Africa to 20%. That transaction was completed in May 2015. Solo also gained the right, at its
sole election, to convert the equity position in Burj Africa to a direct participation in the joint venture with Global in
Nigeria.
Two adjacent marginal fields have been applied for containing 10 wells previously drilled by an
international major oil and gas company. These fields are believed by Burj Africa and its partners to contain gross proven,
probable and possible recoverable oil reserves of 59.3 mmbbls, approximately 13.5 mmbbls net to Burj Africa after payment of
royalties.
Global is the designated operator of the Burj Africa joint venture in Nigeria and Truvent
Consulting is an indigenous Nigerian oil and gas development company. Award of these blocks and any subsequent operations
continues to be subject to Nigerian government approval. Recent developments in the world oil markets and specific to Nigeria
have significantly delayed the issue of new licences under the envisaged Marginal Fields Round. The Company continues to
monitor developments in Nigeria and looks forward to further news in due course.
Canada, Ontario
Solo holds a 28.56% interest in 23,500 acres of petroleum leases in southern Ontario which contain
a number of Ordovician reefal structures which contain variously oil, gas and condensate. The operator, Reef Resources
Inc., has been unable to raise the necessary funds to continue the development of the Ausable gas condensate field and no
alternative has so far been found to unlock the potential. Solo's management continues to seek ways to advance or monetise
the investment made in the Ausable and adjacent Airport fields, and hopes to report progress in due course.
Morocco
In 2015 Solo acquired a small interest in the shares Canadian listed oil and gas company, Maxim
Resources, with a view to acquiring an interest in a possible onshore gas production asset in Morocco. This is a very early stage
seed investment and will be reported on more fully as the project takes shape.
Corporate Results
During the full year ending 31 December 2015 there have been no Board changes. In order to fund
its ongoing investments the Company raised gross proceeds of £2.7 million in new equity by way of the placing of approximately
504 million new shares at a weighted average price of 0.54p per share.
The Company's operating loss for the period was £906,000 (31 December 2014: £1,130,000 loss). In
addition, further charges of £606,000 (31 December 2014: £261,000) relates to the provision for potential losses on the financial
instrument (the Equity Swap Agreement) with YA Global Master SPV Ltd as announced on 24 September 2014.
With the downturn in the oil price the Board determined it prudent to impair 50% of its
investments in Nigeria and Canada. As a result a write down of £875,000 has been incurred.
Immediate Outlook
The Company's holdings in the Kiliwani North Development Licence and its 25% stake in the Ruvuma
PSA continue to represent the most significant investments the Company has made and their further development is being actively
pursued. Appraisal drilling of the Ntorya gas condensate discovery will potentially unlock substantial additional value, whilst
the KNDL gas production will lead to revenues in the coming months.
The Horse Hill-1 well has added significant additional value to the Company, containing both a
commercial conventional Portland Sandstone discovery and a major new play in the Kimmeridge Limestones that has very significant
potential. The Isle of Wight licence awarded recently provides a further asset with proven oil potential and will be more
fully assessed and permitting for future activities progressed through the balance of 2016.
Current market conditions, with a prolonged period of depressed commodity prices, offers increased
opportunities for selective and careful investment. The Company therefore continues to actively assess additional new
investment opportunities in Africa and elsewhere and will make further investments in suitable ventures as and when it is
considered appropriate.
The Company has a diverse and exciting spread of assets from seed investments in Morocco and
Nigeria through to a producing gas field in Tanzania and includes two major discoveries, Ntorya in Tanzania and Horse Hill in the
UK. Over its investment period since 2009 the Company has established an excellent track record on drilling, investing in
five wells leading to four commercial discoveries. This platform for future growth will be broadened and deepened in 2016
and 2017 as the Company receives revenue from Kiliwani North and looks to further enhance its position in new plays and increased
the diversity of the portfolio.
Neil Ritson
Chairman
13 June 2016
Competent Person's statement:
The information contained in this document has been reviewed and approved by Neil Ritson, Chairman
for Solo Oil Plc. Mr Ritson is a member of the Society of Petroleum Engineers, a Fellow of the Geological Society, an
Active Member of the American Association of Petroleum Geologists and has over 38 years relevant experience in the oil
industry.
GLOSSARY & NOTES
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2D seismic
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seismic data collected using the two-dimensional common depth point method
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AIM
|
London Stock Exchange Alternative Investment Market
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API
|
American Petroleum Institute
|
|
barrel or bbl
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45 US gallons
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bbls
|
barrels of oil
|
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bcf
|
billion cubic feet
|
|
best estimate or P50
|
the most likely estimate of a parameter based on all available data, also often termed the
P50 (or the value of a probability distribution of outcomes at the 50% confidence level)
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billion
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10 to the power 9
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bopd
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barrels of oil per day
|
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contingent resources
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those quantities of petroleum estimated, at a gin date, to be potentially recoverable from
known accumulations, but the associated projects are not yet considered mature enough for commercial development due to
one or more contingencies
|
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CPR
|
Competent Persons Report
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discovery
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a petroleum accumulation for which one or several exploratory wells have established
through testing, sampling and/or logging the existence of a significant quantity of potentially moveable
hydrocarbons
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|
electric logs
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tools used within the wellbore to measure the rock and fluid properties of the surrounding
formations
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GIIP
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gas initially in place
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GSA
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gas sales agreement
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HH-1
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Horse Hill-1 well
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HHDL
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Horse Hill Developments Limited
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KN-1
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Kiliwani North-1 well
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KNDL
|
Kiliwani North Development Licence
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m
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thousand (ten to the power 3)
|
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mm
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million (ten to the power 6)
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mmbbls
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million barrels of oil
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mmscf
|
million standard cubic feet of gas
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mmscfd
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million standard cubic feet of gas per day
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OGA
|
UK Oil and Gas Authority (formally the Department of Energy and Climate Change)
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oil in place or STOIIP
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stock tank oil initially in place, those quantities of oil that are estimated to be in
known reservoirs prior to production commencing
|
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pay
|
reservoir or portion of a reservoir formation that contains economically producible
hydrocarbons. The overall interval in which pay sections occur is the gross pay; the portion of the gross pay that meets
specific criteria such as minimum porosity, permeability and hydrocarbon saturation are termed net pay
|
|
PEDL
|
Petroleum Exploration and Development Licence
|
|
permeability
|
the capability of a porous rock or sediment to permit the flow of fluids through the pore
space
|
|
petrophysics
|
the study of the physical and chemical properties of rock formations and their
interactions with fluids
|
|
play
|
a set of known or postulated oil or gas accumulations sharing similar geologic
properties
|
|
porosity
|
the percentage of void space in a rock formation
|
|
prospective resources
|
those quantities of petroleum which are estimated, at a given date, to be potentially
recovered from undiscovered accumulations
|
|
proven reserves
|
those quantities of petroleum, which, by analysis of geoscience and
engineering data, can be estimated with reasonable certainty to be commercially
recoverable (1P), from a given date forward, from known reservoirs and under defined economic conditions, operating
methods, and government regulations
|
|
probable reserves
|
those additional reserves which analysis of geoscience and engineering data indicate are
less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves. It is equally
likely that actual remaining quantities recovered will be greater than or less than the sum of the estimated Proved plus
Probable Reserves (2P)
|
|
possible reserves
|
those additional reserves which analysis of geoscience and engineering data suggest are
less likely to be recoverable than Probable Reserves. The total quantities ultimately recovered from the project have a
low probability to exceed the sum of Proved plus Probable plus Possible (3P) Reserves, which is equivalent to the high
estimate scenario
|
|
PSA
|
petroleum sharing agreement
|
|
PRMS
|
Petroleum Resources Management System
|
|
reserves
|
those quantities of petroleum anticipated to be commercially recovered by application of
development projects to known accumulations from a given date forward under defined conditions
|
|
reservoir
|
a subsurface rock formation containing an individual natural accumulation of moveable
petroleum
|
|
SPE
|
Society of Petroleum Engineers
|
|
tcf
|
trillion cubic feet
|
|
trillion
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10 to the power 12
|
|
unconventional reservoir
|
widely accepted to mean those hydrocarbon reservoirs that are tight; that is have low
permeability
|
The estimates provided in this statement are based on the Petroleum Resources Management System
("PRMS") published by the ("SPE") and are reported consistent with the SPE's 2011 guidelines. All definitions used in
the announcement have the meaning given to them in the PRMS.
Unless otherwise stated all figures are net to Solo's interest.
Financial Statements
Statement of Comprehensive Income for the year ended 31 December 2015
|
|
|
Year ended
|
Year ended
|
|
|
Notes
|
31 December 2015
|
31 December 2014
|
|
|
|
£000's
|
£000's
|
|
Revenue
|
|
-
|
-
|
|
Administrative expenses
|
|
(906)
|
(1,130)
|
|
Loss from operations
|
3
|
(906)
|
(1,130)
|
|
Impairment charge
|
9, 10
|
(875)
|
(400)
|
|
Finance costs
|
6
|
(386)
|
(84)
|
|
Finance revenue
|
7
|
-
|
27
|
|
Provision for losses on financial instrument
|
13
|
(606)
|
(261)
|
|
|
|
|
|
|
Loss before taxation
|
|
(2,773)
|
(1,848)
|
|
Income tax
|
5
|
-
|
-
|
|
Loss for the period
|
|
(2,773)
|
(1,848)
|
|
|
|
|
|
|
Other comprehensive income
|
|
|
|
|
Decrease in value of Available for sale assets
|
|
(78)
|
(4)
|
|
Other comprehensive income for the year net of taxation
|
|
(78)
|
(4)
|
|
|
|
|
|
|
Total comprehensive income for the period attributable to equity holders of the
parent
|
|
(2,851)
|
(1,852)
|
|
|
|
|
|
|
Loss per share (pence)
|
|
|
|
|
Basic and diluted
|
8
|
(0.05)
|
(0.04)
|
|
|
|
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Statement of Financial Position as at 31 December 2015
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Notes
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31 December 2015
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31 December 2014
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£000's
|
£000's
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|
Assets
Non- current assets
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|
|
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Intangible asset
|
9
|
11,392
|
9,043
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|
Available for sale assets
|
10
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1,192
|
1,522
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|
Total non-current assets
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12,584
|
10,565
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Current assets
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|
|
|
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Trade and other receivables
|
12
|
523
|
974
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|
Derivative financial instrument
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13
|
-
|
489
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Cash and cash equivalents
|
|
824
|
2,021
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Total current assets
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1,347
|
3,484
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Total assets
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13,931
|
14,049
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Liabilities
Current liabilities
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|
|
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Trade and other payables
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14
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(234)
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(180)
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Derivative financial instrument
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13
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(314)
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-
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Borrowings
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15
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(112)
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(536)
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Total liabilities
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(660)
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(716)
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Net assets
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13,271
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13,333
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Equity
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Share capital
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16
|
556
|
501
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|
Deferred share capital
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16
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1,831
|
1,831
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|
Share premium
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|
25,077
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22,360
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Share-based payment reserve
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|
884
|
936
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AFS reserve
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(82)
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(4)
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Retained loss
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(14,995)
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(12,291)
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13,271
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13,333
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The financial statements were approved by the board of directors and authorised for issue
on 13 June 2016.
They were signed on its behalf by ;
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Don Strang
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Fergus Jenkins
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Director
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Director
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Statement of Cash Flows for the year ended 31 December 2015
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Year ended
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Year ended
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31 December 2015
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31 December 2014
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£000's
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£000's
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Cash outflow from operating activities
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|
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Operating loss
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(906)
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(1,130)
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Adjustments for:
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|
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Share-based payments
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-
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208
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Decrease in receivables
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451
|
317
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Increase/(Decrease) in payables
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|
54
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64
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Foreign exchange loss
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|
6
|
3
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Net cash outflow from operating activities
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(395)
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(538)
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Cash flows from investing activities
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|
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Interest received
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-
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27
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|
Payments to acquire intangible assets
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(2,649)
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(994)
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Payment to acquire derivative financial instrument
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-
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(750)
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Net payments on settlements of derivative financial instruments
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(110)
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-
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Payments to acquire Available for sale investments
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(132)
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(713)
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Net cash outflow from investing activities
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(2,891)
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(2,430)
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|
|
|
|
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Cash flows from financing activities
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|
|
|
|
Proceeds from borrowings
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|
336
|
536
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Repayments of borrowings
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(754)
|
-
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Finance costs
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|
(62)
|
(52)
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|
Proceeds on issuing of ordinary shares
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|
2,700
|
2,759
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Cost of issue of ordinary shares
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(131)
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(210)
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Net cash inflow from financing activities
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2,089
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3,033
|
|
|
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Net increase in cash and cash equivalents
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(1,197)
|
65
|
|
|
|
|
|
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Cash and cash equivalents at beginning of the period
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2,021
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1,956
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Cash and cash equivalents at end of the period
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824
|
2,021
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The above Cash Flow should be read in conjunction with the accompanying notes.