(Alliance News) - Scirocco Energy PLC on Friday said it was "pleased" to hear Reabold Resources PLC will receive a final payment from Shell UK Ltd, adding that it expects an injection of cash to its balance sheet as a result.
Scirocco is a Leeds, England-based investor focused on opportunities in the energy transition market.
This follows Reabold's announcement yesterday, in which it said the final tranche of payment from Shell in relation to the sale of Corallian Energy Ltd will be distributed to former Corallian shareholders over the coming days. This follows the grant of development approval for the Victory gas field.
Reabold will receive GBP4.4 million from Shell, having already received GBP8.3 million. It will use proceeds to advance development of assets within its portfolio, and will distribute excess cash to shareholders.
Scirocco owns a minor stake in Corallian through the subscription for 83,333 shares at a price of GBP1.50 per share. Scirocco said it has previously received two payments; an initial payment of around GBP67,000 corresponding to 0.80 pence per Corallian share and a second payment of GBP108,333 corresponding to GBP1.30 per Corallian share.
Based on the Reabold announcement, Scirocco said it will receive a payment of GBP91,666 corresponding to GBP1.10 per Corallian share, bringing the total consideration up to GBP3.20 per Corallian share.
Scirocco Chief Executive Officer Tom Reynolds said: "We're pleased to provide this update, which adds cash to Scirocco's balance sheet. The sale of these assets creates optionality for the company's ongoing assessment of alternative options and next steps."
Shares in Scirocco were untraded at 0.26 pence each in London on Friday morning.
By Sabrina Penty, Alliance News reporter
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Scirocco Energy (SCIR)
Reabold Resources (RBD)