REG - Scirocco Energy PLC - Ruvuma Disposal Update

Scirocco EnergyAnnouncement

31/08/2022 15:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220831:nRSe8123Xa&default-theme=true

RNS Number : 8123X  Scirocco Energy PLC  31 August 2022

31 August 2022

Scirocco Energy plc

("Scirocco Energy" or "the Company")

Ruvuma Disposal Update

Scirocco Energy (AIM: SCIR), the AIM investing company targeting attractive
assets within the European sustainable energy and circular economy markets,
provides the following update on the disposal of its 25% interest in the
Ruvuma asset in Tanzania:

As communicated in the RNS of 19 August 2022, the Company received written
confirmation from the Tanzania Petroleum Development Corporation ("TPDC") that
it will not exercise its statutory right of first refusal with respect to the
Company's divestment of its 25% interest in the Ruvuma asset.

ARA Petroleum Tanzania ("APT"), the current 50% interest holder and operator
of Ruvuma, has maintained its intention to exercise its pre-emption rights and
Scirocco has now entered into binding agreements with APT which, inter-alia,
provides access to cash call cover through the previously announced loan
facility and 1(st) drawdown notice for $1.614 million which is expected to be
paid by or on 5 September 2022. Other than for adjustments with respect to
conditions precedent now fulfilled, including TPDC waiving its right of first
refusal and Scirocco shareholder approval for the disposal having now been
obtained, APT has agreed to enter into all of the same agreements (and on the
same terms) as Wentworth Resources plc (as detailed in the Company's
announcement of 13 June 2022).

Accordingly, as previously communicated in the RNS of 12 July 2022 (announcing
the potential exercise of pre-emption rights and right of first refusal) the
commercial terms outlined in the disposal announcement of 13 June 2022, and
subsequently approved by Scirocco's shareholders, remain unchanged.

The Company will work with APT to complete the disposal by 31 December 2022,
being the same intended completion date as with Wentworth Resources plc.
Further updates will be provided as and when appropriate.

Commenting on the update Tom Reynolds, Scirocco's CEO said:

"We are very pleased to have successfully concluded discussions in relation to
pre-emption rights and right of first refusal with APT and TPDC respectively,
to the satisfaction of all parties.

"APT represents a robust counterparty with deep experience of the asset and
the jurisdiction, and a strong working relationship with TPDC built during the
course of the Ruvuma JV to date, which bodes well for Scirocco's exposure to
the ongoing success of the project inherent in the SPA through the contingent
elements of the agreed consideration.

"We now expect a swift completion of the deal, providing Scirocco with clarity
on its ability to move forward as a well-funded, strategically focused company
with a clear vision to deliver sustainable long-term value for the Company's
shareholders through investments in sustainable energy and the circular
economy."

 

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 / Rory Murphy

 WH Ireland Limited, Broker                     +44 (0) 207 220 1666

 Harry Ansell / Katy Mitchell

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

 Ben Romney / Jon Krinks

 

Inside Information

The information contained within this announcement is deemed by Scirocco to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) no. 596/2014 ("MAR"). On the publication of this announcement via
a Regulatory Information Service ("RIS"), this inside information is now
considered to be in the public domain.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DISBKDBBQBKDAFN