Scirocco Energy Regulatory News (SCIR)

15 March 2021

Scirocco Energy plc

("Scirocco" or "the Company")

Disposal of Ausable Reef assets

Scirocco Energy (AIM: SCIR), provides an update on its disposal of its 28.56% interest in the Ausable Reef gas assets (the "Assets"). 

In July 2020, the Company announced that it had entered into a conditional asset purchase agreement ("Agreement") with Reef Resources Limited ("Reef") and Levant Exploration and Production Corp. ("Levant") for the sale ("Sale") of its 28.56% interest in the Assets, which are located in Ontario, Canada. Unfortunately, Levant has been unable to satisfy certain of the conditions to completion contained in the Agreement and consequently Reef and Scirocco have elected to terminate the Agreement.

Following the termination of the Agreement, Scirocco has entered into a quit claim agreement with Reef pursuant to which Scirocco has transferred, for nominal consideration, its 28.56% interest in the Assets to Reef and Reef has assumed the associated liabilities, historic and future, in each case with effect from 1 December 2020.

The Company fully impaired the value of its holding in the Assets to zero in 2017 and incurred only nominal costs related to its holding in the Assets in 2020.

Commenting on the disposal, Tom Reynolds, CEO, said:

"The disposal of the Ausable Reef interest is another milestone as we transition the Company away from legacy assets to pursue opportunities within the sustainable energy market in Europe. This removes exposure to potential contingent liabilities associated with the Assets and we continue to pursue options to recycle value from other legacy assets into new investments within the Energy, Circular and Vector elements."

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