Member Info for 44RJ

This RNS does not answer the question that has been posed on this chat board regarding the loan (the Facility). The agreement with Wentworth states the following:

"Subject to Completion occurring, the Facility is repayable by Scirocco upon Completion by way of a corresponding reduction to the consideration payable under the Asset Purchase Agreement."

So my understanding of this is that if the deal completes, say, after the 3D and CH1 cash calls (not unreasonable to assume), then Scirocco will have to repay the amount borrowed from Wentworth. So if these costs are, say, $3.5M then effectively this deal can only ever return $12.5M. Really happy to be proven wrong, but this RNS has done nothing to calm my fears on this issue.

Just look at this share price. There are no words... With a different leadership team this share had the potential for us all to make good money. Just look at what out board has done. The SP says it all. It's a disgrace. They should be totally ashamed.
I hope the board are made to feel very uncomfortable at the AGM.

It's a bit frustrating that APT didn't come to the table in a more meaningful way a few months ago then perhaps this could all have been avoided.
However, it doesn't get away from the fact that the SCIR BOD should have focused on retaining cash to stay in the project throughout the drill and beyond.
God what a mess. I've no idea how this will play out.

Good summary cashintime. I fully agree.

just another 1,300% to go and then I'll break even! Yay! God bless our board for guiding us on to this path of growth and prosperity. Good job guys. Really great work...

I would say it's a complete disaster either way Mrc.

in other news, look at what this transformational deal has done to the sp; 0.34p.

I repeat, 0.34p.

And the BoD are still trotting out its message that this is good?! I'd hate to see a bad deal from them... As you can probably tell, I'm struggling to come to terms with this outcome after 10 years of investment. Gross mismanagement on an epic scale in my view.

Thanks Truffler. Yes, the RNS could have been clearer on this matter; the wording is pretty ambiguous. Shame it had to be confirmed verbally via the LSE interview, but it's comforting to know that SCIR will be reimbursed for seismic costs incurred from Jan 2022 onwards (assuming the deal goes through smoothly).
I still don't think its a good deal though.

I get the feeling that the deal is structured so that SCIR has to pay for the 3D. One final kick in the spheres by Katherine Roe!
Very happy to be proven wrong of course.

Each time I read that highland matt it sounds to me like SCIR has to bear the costs of the cash calls until Completion (i.e. SCIR has to repay the loan). The wording is ambiguous.
Does anyone have a definitive answer on this?

Why oh why did I not hit the sell button in January 2017? I could have saved myself 5 years of my life. A life lesson learned the hard way.
With regards to the new AD strategy, I do think it will ultimately lead to market cap growth, to which the BOD will declare it a triumph. However there is no way that I will ever recoup my losses here. I'm going to sit tight until the deal gets signed and then the first $3m lands - hopefully that will push the sp nearer to 1p to give me a route out of this tragedy.
How did it come to this? Multi billion dollar asset and we're looking at a payment of $3m. My word that's the best example of poor leadership that I have ever seen in the whole of my life!

I just can't believe that over sixty percent voted for that POS deal. They must have very very long term aspirations - I've already waited one decade, I don't think I can wait another to get my money back. I feel absolutely robbed.

What on earth did they discuss then?

My thoughts exactly Bigdouble.

The problem with gagging is that it has the opposite effect - it ultimately increases the negative feeling within the group. Plus there are other ways of communicating such as email, so it's all a bit pointless really.
The BoD must think this resolution vote is on a knife edge so this feels like last ditch tactics on their part. If they can slip this one through then they know that they can remain in place for several more years and acquire another small AD plant pretty much immediately. No doubt that they also think that the LTHs will ultimately drift way on the back of the Tanzania disposal - paving the way for "Scirroco Mark 2" with just Kiliwani as a legacy asset (probably to be flogged after the free seismic, or given away as per Isle of Wight).
Fair play to the BoD - they're just doing what they see as the best course of action for them. The problem with that is that it doesn't align with my view on what the main focus of the company should be, i.e. Ruvuma. As I said before, I pressed the "buy" button for the Ruvuma gas field, not for a 0.5 MWe anaerobic digestion facility. The appear to have taken the mandate to progress the renewable strategy much too literally and at the expense of our flagship asset.

To those LTH that have not yet voted, please do, whatever your view may be (for or against). Make up your own minds, form your own conclusions. The more votes that there are, the more accurate the message will be back to the leadership team about how us shareholders want this company to be managed.

Welcome back Big Double / Cashintime. I was on a warning myself from LSE. Not a great look is it when shareholders are gagged.

Perfect summary Highlandmatt

Well, at least we know that the directors read this chat site. I'm pretty pleased about that as I'm sure they will now realise what a dog of a deal this, and that we are all, to a man, absolutely disgusted with it!

Poor form to block Big Double. Comes across as very desparate in my view.

Just re-read that and its ranty and full of typos - apologies, but I'm p****d off...

This RNS just reinforces my "against" vote. It reads more like a threat than anything else. I don't appreciate the way the BoD keep referring to this a "retaining material upside exposure in the success case". I disagree with this. Us shareholders have very limited upside in my view. The only upside is that we get the 13M USD if the project is commercialised and after several very long term milestones which may not come to pass. Essentially, I consider this deal to be worth just $3M, as there are no guarantees that the other milestones will be achieved, or by what date. History tells us that this project takes longer than expected (I've been invested since 2011, so I'm in my eleventh year of waiting) so we won't see the $13M for a very long time. Essentially its just a $3M deal for the next AD plant which will not result in market cap anywhere near what I need to break even and never will.
I also don't appreciate the CH1 drilling risk scaremongering. Of course there's risk in drilling. Everyone here knows that and we accept these risks when we invest in such exploration and appraisal companies.

In my view the board are placing too much emphasis on the previous resolution to progress to the renewable strategy. Whilst I agree wholeheartedly with this approach in the long run, the divestment in this way is not the way to do it. The BoD has lost sight, or has become out of touch, with why us shareholders pressed the "buy" button for Solo/SCIR in the first place. It was not for one small AD plant. It was to develop a large gas field in Africa.

I've invested £22k in this company and its no worth about £2k. My holding is worth so little now that I don't fear the scenario default. As I'm also invested in Aminex presumably I would see a slight return via Aminex's uplift to 31.25%. What have I got to lose? £2 grand? What will my holding be worth is the deal goes through? £3 grand, £4 grand? Certainly not £22k!

For all of those who are sitting on the fence on this one, but watching this chat board, I urge you to vote now. Just go on the SCIR web site to download the voting form and pick up the phone to your broker to cast your vote. It's really easy.

All the very best to you all