REG - Scirocco Energy PLC - Amendment and repayment of Prolific facility

Scirocco EnergyAnnouncement

11/10/2022 07:16

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RNS Number : 4115C  Scirocco Energy PLC  11 October 2022

11 October 2022

Scirocco Energy plc

("Scirocco Energy" or "the Company")

 

Amendment and repayment of Prolific facility

 

Scirocco Energy (AIM: SCIR), the AIM investing company targeting attractive
assets within the European sustainable energy and circular economy
markets, is pleased to announce an amendment to, and repayment schedule for,
the investment facility (the "Facility") with Prolific Basins LLC, a
U.S.-based investor ("Prolific").

Utilising available cash resources, strengthened by the first cash instalment
received from ARA Petroleum Tanzania Limited ("APT") under the loan agreement
associated with Ruvuma disposal agreement (details on which have been
previously announced), Scirocco has agreed to pay, in the coming days,
$200,000 to part settle the outstanding balance of the Prolific Facility, with
the remaining balance of $245,000 to be paid in five equal monthly instalments
of $49,000 each over the months of November 2022 to March 2023 inclusive.
Provided that the Company complies with this repayment schedule, Prolific has
also agreed not to request share issuances under the Facility.

Tom Reynolds, Scirocco Energy CEO commented "We are pleased to have amended
the terms of the facility to enable the full settlement of the Facility
without issuing further Scirocco shares. This amendment also enables the
Company to retain cash flexibility in the short term.  The Facility served as
a vital source of capital to retain the Company's interest in Ruvuma through
the sales process, and now that the Company has a clear line of sight to
completion of the divestment of that interest we are accelerating the final
settlement.

Scirocco is pleased to have Prolific's continued support during a challenging
time in the global markets, Prolific's investment served as an important
bridge in Scirocco's cash flow requirements, and Prolific has acted as a
supportive and responsible corporate citizen during its tenure as an investor
in Scirocco.

Following receipt of the first funds associated with the APT loan agreement,
Scirocco is in a significantly more secure financial position, which enables
the Company to pay down this facility.  Crucially, as we pursue completion
with APT, the Company is no longer exposed to cash calls associated with
Ruvuma providing clarity on the use of funds and the ability to pursue further
investment in EAG and other platforms which meet the Company's investment
criteria. "

 

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

 James Spinney / Ritchie Balmer / 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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