Solo Oil has signed a sale and purchase agreement (SPA) to exit its 20% investment in Burj Petroleum Africa Ltd., a company which had applied for various undeveloped fields in the 2014 Nigerian Marginal Fields Bid Round.
Solo will divest its interest in this non-core asset for a nominal consideration of £1 to Burj Petroleum Corp., an existing shareholder in Burj, subject to no other shareholders in Burj exercising their pre-emption rights in relation to the proposed sale by Solo. In doing Solo will so relinquish any future costs associated with Burj. Provided that no other shareholders in Burj exercise their pre-emption rights, it is anticipated that the deal will complete at the beginning of October 2019.
Commenting on the announcement, Alastair Ferguson, Executive Chairman said: “Whilst the divestment consideration is nominal, the symbolic relevance of this divestment is material. We continue to rationalise the portfolio in line with our stated strategic objectives as we seek to clean up the portfolio through divestment of all non-core assets and focus our attention on building the Company going forward around cash flow from high quality assets in low-risk jurisdictions and we look forward to updating shareholder in the near term as further progress is made.”