Rns12 Jul 2022 19:43
Solo Oil Share News - SOLO
Current Price
1.85p
0.00 0.0%
Bid Price Offer Price
1.80 1.90
High Price Low Price Open Price
Shares Traded Last Trade Market Cap (m)
0.00 01:00:00 13
Scirocco Energy PLC Notice to Exercise Pre-emption Rights
Intraday Solo Oil Chart
Intraday Solo Oil Chart
12/07/2022 6:10pm
UK Regulatory (RNS & others)
TIDMSCIR
RNS Number : 2422S
Scirocco Energy PLC
12 July 2022
12 July 2022
Scirocco Energy plc
("Scirocco Energy" or "the Company")
Notice to Exercise Pre-emption Rights
Scirocco Energy (AIM: SCIR), the AIM investing company targeting attractive assets within the European sustainable energy and circular economy markets confirms that it has received formal notice from ARA Petroleum Tanzania Limited ("APT") that it is exercising its pre-emption rights with regards to Scirocco's proposed divestment of the Ruvuma asset ("Ruvuma") to Wentworth Resources plc ("Wentworth") in addition to a separate letter received from the Tanzania Petroleum Development Corporation ("TPDC") stating that it is considering exercising its statutory rights of first refusal in relation to the Ruvuma pursuant to Section 86(5) of the Petroleum Act 2015.
As communicated to the market by RNS on 13 June 2022, Scirocco had entered into an asset sale agreement to divest its 25% non-operated interest in Ruvuma to Wentworth for a total consideration of up to US$16 million, with completion of the transaction being subject to a number of conditions, including, inter alia, written waivers (a) from each of the Company's joint venture partners in relation to Ruvuma, APT and Aminex plc ("Aminex") (together, the "Ruvuma Partners"), from exercising their pre-emption rights in relation to the sale of the Company's interest and (b) from TPDC of their rights of first refusal in relation to the Ruvuma Asset pursuant to Section 86(5) of the Petroleum Act 2015. APT has now informed Scirocco that it is exercising its pre-emption rights under the terms of the Joint Operating Agreement associated with Ruvuma, dated 23 March 2006, which relate to the Company's entire interest in Ruvuma. As noted above, TPDC have also delivered a letter to the Company requesting a meeting to discuss the potential exercise of their statutory right of first refusal in connection with the Company's proposed divestment of Ruvuma.
The Company is now taking further Tanzanian legal and regulatory advice to understand the interaction of the correspondence received and the consequences for the proposed divestment before entering into discussions with each of APT, TPDC and Wentworth to confirm next steps. The Company's current expectations based on the advice received to date is that the commercial terms of the sale of Ruvuma will be the same as those agreed with Wentworth regardless of the exercise of pre-emption by partners or the sale being conducted to TPDC pursuant to any exercise of their right of first refusal. A further update will be provided in due
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