Solo has agreed a 30 day extension to the first right of refusal (FROR) to participate in any future equity financing of Pan Minerals in the development of its West African oil production opportunities.

A Share Purchase Agreement (SPA) with Swiss based Pan Minerals & Oil AG (Pan Minerals) was announced on 9 May 2013 and 21 May 2013 in which Solo acquired a 15% shareholding in Pan Minerals. The FROR which was a part of the SPA allows Solo, at its sole discretion, to increase its direct equity interest in Pan Minerals from 15% to up to 49.9%. The FROR has now been extended from 90 to 120 days.

The purpose of the investment is to assist Pan Minerals to conclude existing production agreements that it has negotiated onshore in West Africa. Pan Minerals is a Special Purpose Vehicle company that focuses on proven reserve situations which have the potential to be brought on production at over 2,000 bopd within a twelve month period.

The current term of the FROR will expire on 18 September 2013.

Tags: Solo Oil