SCIR.L Regulatory News (SCIR)

3 August 2022

Scirocco Energy plc

("Scirocco Energy" or "the Company")

AGM Statement

Scirocco Energy (AIM: SCIR), the AIM investing company targeting attractive assets within the European sustainable energy and circular economy markets is holding its Annual General Meeting ("AGM") today at 10:30 a.m. BST on 3 August 2022 at the offices of Pinsent Masons LLP, 30 Crown Place, Earl Street, London, EC2A 4ES.

At the meeting, Alastair Ferguson, Non-Executive Chairman of Scirocco Energy, will make an opening formal statement, the highlights of which include:

"It has been a transformative period for the Company as, following an extensive two-year sales process, we reached an agreement with Wentworth Resources for the sale of the Ruvuma asset in June of this year for a total headline consideration of up to US$16m. The transaction was subsequently approved by shareholders at a general meeting held on 29 June 2022.

We remain confident that it was the best deal available to the Company, removing a major overhang while retaining exposure to the success case, and providing the balance sheet strength that allows us to pursue a new strategy focussed on sustainable energy and the circular economy, an investment policy that was overwhelmingly approved by over 99% of shareholders in this forum last year.

The Company made its initial investment in line with this strategy in August last year by acquiring a 50% interest in Energy Acquisitions Group, creating a joint venture platform capable of leveraging EAG's strong network and industry leading expertise to gain access to a pipeline of attractive, cash-generative opportunities within the anaerobic digestion and biogas market.

In October 2021, the JV made its first acquisition of Greenan Generation Limited and its 0.5MWe Anaerobic Digestion (AD) plant in Northern Ireland. As demonstrated through the operational improvements implemented to date at Greenan, which has seen revenue increase by 34.5% year over year at the end of Q1 2022, EAG's team bring significant operational expertise in the anaerobic digestion sector, and we expect to meaningfully progress further similar opportunities in tandem over the coming months.

Our investment into EAG, and the resultant JV platform, positions the Company within the energy transition space at an important juncture on the journey to net-zero, and allows us to target a significant and growing pool of capital in the low carbon sector that was previously unavailable as ESG headwinds limited the availability of funding for small, single-asset oil and gas players in recent years. 

To conclude we expect a timely resolution to the outstanding situation with regards to pre-emption rights and right of first refusal on the Ruvuma divestment and look forward to the successful completion of the transaction as we move forward as a well-funded, strategically focused company with a clear vision to deliver sustainable long-term value for the Company's shareholders."

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