Solo Broker Points to Price Four Times Higher as Shares Rally from a low of .23
Aminex and Solo both recently published operational updates.
At Kiliwani North, in which Solo has a 7.25% interest, production
averaged 15 million cubic feet per day to May 2017.
Meanwhile at the flagship Ntorya gas project, Aminex is now working
with the Tanzanian Petroleum Development Company on an early production solution.
Aminex is also considering a third well (NT3) which has a
high chance of adding to Ntorya’s 186 BCF 2C resource.
We have updated our Solo Oil valuation to reflect the
success of Ntorya 2, the subsequent resource upgrade, and Solo’s investment into
Helium One. These changes increase our
target price to 0.91p and underpin our Speculative Buy recommendation.
Note that post the upcoming share consolidation, our target price
will become 18.2p. We have also updated our financial forecasts.
Ntorya 2 appraisal well – very good result in 1Q 2017
Aminex and Solo announced successful results from the NT2
well.
The flow rate was 17mmcfd and combined with the NT1 well drilled
in 2012, Aminex and Solo now estimate gross contingent resources (2C) of 186 BCF, a
significant and commercial scale gas discovery.
Full Note: Beaufort Securities