REG - Scirocco Energy PLC - AGM Statement

Scirocco EnergyAnnouncement

03/08/2022 07:15

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RNS Number : 7399U  Scirocco Energy PLC  03 August 2022

3 August 2022

Scirocco Energy plc

("Scirocco Energy" or "the Company")

AGM Statement

Scirocco Energy (AIM: SCIR), the AIM investing company targeting attractive
assets within the European sustainable energy and circular economy markets is
holding its Annual General Meeting ("AGM") today at 10:30 a.m. BST on 3 August
2022 at the offices of Pinsent Masons LLP, 30 Crown Place, Earl Street,
London, EC2A 4ES.

At the meeting, Alastair Ferguson, Non-Executive Chairman of Scirocco Energy,
will make an opening formal statement, the highlights of which include:

"It has been a transformative period for the Company as, following an
extensive two-year sales process, we reached an agreement with Wentworth
Resources for the sale of the Ruvuma asset in June of this year for a total
headline consideration of up to US$16m. The transaction was subsequently
approved by shareholders at a general meeting held on 29 June 2022.

 

We remain confident that it was the best deal available to the Company,
removing a major overhang while retaining exposure to the success
case, and providing the balance sheet strength that allows us to pursue a
new strategy focussed on sustainable energy and the circular economy, an
investment policy that was overwhelmingly approved by over 99% of
shareholders in this forum last year.

 

The Company made its initial investment in line with this strategy in August
last year by acquiring a 50% interest in Energy Acquisitions
Group, creating a joint venture platform capable of leveraging EAG's
strong network and industry leading expertise to gain access to a pipeline
of attractive, cash-generative opportunities within the anaerobic digestion
and biogas market.

 

In October 2021, the JV made its first acquisition of Greenan Generation
Limited and its 0.5MWe Anaerobic Digestion (AD) plant in Northern Ireland. As
demonstrated through the operational improvements implemented to date at
Greenan, which has seen revenue increase by 34.5% year over year at the end of
Q1 2022, EAG's team bring significant operational expertise in the
anaerobic digestion sector, and we expect to meaningfully progress further
similar opportunities in tandem over the coming months.

 

Our investment into EAG, and the resultant JV platform, positions the Company
within the energy transition space at an important juncture on the journey to
net-zero, and allows us to target a significant and growing pool of capital in
the low carbon sector that was previously unavailable as ESG headwinds limited
the availability of funding for small, single-asset oil and gas players in
recent years.

 

To conclude we expect a timely resolution to the outstanding situation with
regards to pre-emption rights and right of first refusal on the Ruvuma
divestment and look forward to the successful completion of the transaction
as we move forward as a well-funded, strategically focused company with a
clear vision to deliver sustainable long-term value for the Company's
shareholders."

 

For further information:

 Scirocco Energy plc                               +44 (0) 20 7466 5000

 Tom Reynolds, CEO

 Doug Rycroft, COO

 Strand Hanson Limited, Nominated Adviser          +44 (0) 20 7409 3494

 Ritchie Balmer / James Spinney / Robert Collins

 WH Ireland Limited, Broker                        +44 (0) 0207 220 1666

 Harry Ansell / Katy Mitchell

 Buchanan, Financial PR                            +44 (0) 20 7466 5000

 Ben Romney / Jon Krinks

 

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