Solo Oil has taken a stake in Norwegian gas explorer Helium One with a view to capitilising on a “potentially world-scale” resource.
The independent investment firm acquired the 10% interest in the company for £2.55million.
It will give the business access to Helium One’s Rukwa Project in Tanzania.
The gas field gas an estimated recoverable helium volume close to 100 billion cubic feet (“bcf”).
Neil Ritson, Solo’s chairman said: “Solo has successfully invested in bringing several gas projects to market in Tanzania which are now reaching maturity from an investment viewpoint.
“Given the related pricing of petroleum gas and helium, which is globally in short supply, Solo has for some time been investigating opportunities in the helium sector.
“Helium One’s portfolio of prospective helium projects in Tanzania provide Solo with a unique early stage investment into a potentially world-scale helium resource.
“The company believes that Rukwa, together with Helium One’s additional project areas at Eyasi and Balangida, represent an attractive strategic investment, especially given the helium market’s weak supply dynamics and continued demand growth.”
London listed Solo has a 90 day option to increase its initial investment in Helium One by another 10% for an addition £4million.
Solo already has a presence in Tanzania with gas production from Kiliwani North and a 25% working interest in the Ntorya gas-condensate discovery.
Solo has also raised £1.2 million (gross) by means of an arranged subscription with institutional and private investors.
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