SOLO INTERNATIONAL (OTCMKTS:SLIO) announced lease acquisition of probable oil bearing property in Clay County Tennessee and Monroe County Kentucky. The land owner and the company have agreed to a hundred percent working interest. The cash purchase price is decided at $25,000 payable within ninety days of the execution of the deal. It is exchange for an 80% net revenue interest that will be paid to the company. Solo informed about current production on adjoining assets.
The oil Production in both Tennessee and Kentucky is of relatively low cost for operation and drilling as most deposits are thinly shallow, in and around 1200 to 2000 feet. The production of oil in Kentucky in 2014 crossed over 3.3 million barrels.
The expert speaks
Michael Smith, the CEO of Solo International, said that they are of view with the drop in oil prices last year and recent surge of oil prices in the first quarter of fiscal, it appears an ideal time to buy the mentioned quality leases. These are selling for a small fraction of the price compared to six months ago. The low prices enable the company to set and partially expand a considerable land property prior to any significant rebound in oil prices.
He further added that Solo International believe diversification as the key to success. The company will continue with its existing directive on REE leases. With the recent opportunity, the company will move forward with the development of all the existing oil properties and will also consider other meaningful acquisitions. It has other oil assets located in the Tennessee and Kansas regions. It will provide with additional updates as they become available.
In last trading session, the stock price of Solo gained more than 10% to close the trading session at $0.00130. The gain came at a share volume of 85.46 million compared to average share volume of 14.53 million.