Solo Oil is to team with one of the industry’s leading entrepreneurs in an asset swap deal.
Solo will exchange its 15% stake in Pan Minerals and Gas for a 15.9% stake in Burj Petroleum Africa and will acquire a further 5% for $500,000 in cash and shares.
Burj, which was created to take part in Nigeria’s marginal field round, is the latest investment of Phil Mulacek, the founder of York-listed InterOil, which he helped develop into the US$2.5bn giant it is today.
Mulacek is a director and has 15% of Burj, which is partnered with Global Oil and Gas and Truvent Consulting to make applications for two Nigerian marginal fields in the current round.
They contain 10 wells that were drilled by international majors and internal estimates suggest the licences contain proven and possible recoverable oil reserves of 59.3mln barrels, of which 13.5mln are net to Burj.
Solo has the right to convert the equity position in Burj Africa to a direct stake in the joint-venture with Global.
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