REG - Scirocco Energy PLC - Ruvuma Operations Update

Scirocco EnergyAnnouncement

12/07/2023 07:15

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RNS Number : 7157F  Scirocco Energy PLC  12 July 2023

12 July 2023

Scirocco Energy plc

("Scirocco Energy" or "the Company")

Ruvuma Operations Update

 

Scirocco Energy (AIM:SCIR), the AIM investing company targeting attractive
assets within the European sustainable energy and circular economy
markets, notes the update issued today by Aminex PLC ("Aminex" or "the
Company")  regarding the Ruvuma asset, in which Scirocco awaits completion of
the divestment of its 25% interest to ARA Petroleum Tanzania ("APT"). The
update states that operations on the Ruvuma PSC have continued to progress
under the direction of the operator, APT.

Commenting on the update, Tom Reynolds, CEO of Scirocco, said:

"The significant progress made by the JV in the development of the Ruvuma
license has provided us with improved clarity regarding the timing of
contingent payments under the sale arrangements between ARA Petroleum Tanzania
and Scirocco. Scirocco Energy is continuing to make progress towards the
completion of the transaction and looks forward to providing an update on its
status."

Highlights:

·      Following analysis of the results of the initial 3D seismic
processing and interpretation, the JV partners have chosen a new optimal
target location of the Chikumbi-1 well ("CH-1").  The Tanzanian authorities
have given provisional approval of the new CH-1 well pad location and final
written approval is expected imminently.

·      The full processing of the 3D seismic data is now complete. Given
the vast volume of data acquired, interpretation is now due to be completed in
Q4 2023, which may result in a full revision of gas reserve and resource
potential for the field.

·      A well-workover of the Ntorya-1 well ("NT-1"), to enable rapid
tie-in to the gas production facilities and bring the well into early
production requires the use of a drilling rig and remains scheduled to run
after the drilling of CH-1.

·      The Gas Sales Agreement ("GSA") in respect of the Ntorya Gas
Field has now been agreed among the JV partners and the Tanzania Petroleum
Development Corporation ("TPDC"). Signing of the GSA will take place upon
approval by the Attorney General's Office.

·      The Field Development Plan ("FDP") for the development of the
Ntorya Area has now been approved by all parties.

·      The Development Licence for the Ntorya Area has been approved by
all relevant Tanzanian authorities and has been submitted to the Cabinet of
Ministers for final authorisation.

·      The Tanzanian authorities have continued with the necessary
workstreams to progress the construction of the export pipeline from Ntorya to
the Madimba Gas Plant to accommodate gas, according to recent public reports,
by December 2023.

·      APT recently received the first shipment of long lead items,
including tubulars, required for the spudding of the CH-1 well.

·      The two-week well-testing programme on the Ntorya-2 well
("NT-2"), designed to provide additional information required for the design
of in-field processing facilities, and originally scheduled for late March
2023, is now expected to run in the coming months.

As previously announced, the conclusion to the above workstreams decouples the
spudding of CH-1 from first gas production and receipt of gas revenues. The
re-defining and de-risking of the project materially advances first gas
production, which is now expected at the end of 2023. A further announcement
on drilling rig arrangements and timings will be made in due course.

Aminex, with a 25% non-operated interest, is carried throughout the ongoing
work programme to a maximum gross capital expenditure of $140 million ($35
million net to Aminex). The carry is expected to see the Company through to
the commencement of commercial gas production from the Ntorya gas-field at
zero cost to the Company.

Charles Santos, Executive Chairman of Aminex commented:

"Ruvuma is an important project for Tanzania requiring a broad technical
engagement and multiple negotiations.  We are very pleased that the Tanzanian
authorities continue to prioritize our project, including supporting the
accelerated production of gas and the building of a pipeline. We are also
pleased to report that APT is making great progress, including finalization of
the GSA, FDP and the Development Licence, and the identification of a
much-improved well location. We expect additional progress in the coming
months on the well-testing of NT-2, the spudding of CH-1 and the workover of
NT-1.  We also look forward to the completion of the 3D seismic
interpretation by the fourth quarter of 2023"

 

For further information:

 Scirocco Energy plc                            +44 (0) 20 7466 5000

 Tom Reynolds, CEO

 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 / George Pope

 

 

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