SCIR.L Regulatory News (SCIR)

31 August 2022

Scirocco Energy plc

("Scirocco Energy" or "the Company")

Ruvuma Disposal Update

Scirocco Energy (AIM: SCIR), the AIM investing company targeting attractive assets within the European sustainable energy and circular economy markets, provides the following update on the disposal of its 25% interest in the Ruvuma asset in Tanzania:

As communicated in the RNS of 19 August 2022, the Company received written confirmation from the Tanzania Petroleum Development Corporation ("TPDC") that it will not exercise its statutory right of first refusal with respect to the Company's divestment of its 25% interest in the Ruvuma asset.

ARA Petroleum Tanzania ("APT"), the current 50% interest holder and operator of Ruvuma, has maintained its intention to exercise its pre-emption rights and Scirocco has now entered into binding agreements with APT which, inter-alia, provides access to cash call cover through the previously announced loan facility and 1st drawdown notice for $1.614 million which is expected to be paid by or on 5 September 2022. Other than for adjustments with respect to conditions precedent now fulfilled, including TPDC waiving its right of first refusal and Scirocco shareholder approval for the disposal having now been obtained, APT has agreed to enter into all of the same agreements (and on the same terms) as Wentworth Resources plc (as detailed in the Company's announcement of 13 June 2022).

Accordingly, as previously communicated in the RNS of 12 July 2022 (announcing the potential exercise of pre-emption rights and right of first refusal) the commercial terms outlined in the disposal announcement of 13 June 2022, and subsequently approved by Scirocco's shareholders, remain unchanged.

The Company will work with APT to complete the disposal by 31 December 2022, being the same intended completion date as with Wentworth Resources plc. Further updates will be provided as and when appropriate.

Commenting on the update Tom Reynolds, Scirocco's CEO said:

"We are very pleased to have successfully concluded discussions in relation to pre-emption rights and right of first refusal with APT and TPDC respectively, to the satisfaction of all parties. 

"APT represents a robust counterparty with deep experience of the asset and the jurisdiction, and a strong working relationship with TPDC built during the course of the Ruvuma JV to date, which bodes well for Scirocco's exposure to the ongoing success of the project inherent in the SPA through the contingent elements of the agreed consideration.

"We now expect a swift completion of the deal, providing Scirocco with clarity on its ability to move forward as a well-funded, strategically focused company with a clear vision to deliver sustainable long-term value for the Company's shareholders through investments in sustainable energy and the circular economy."

For further information:

Inside Information

The information contained within this announcement is deemed by Scirocco to constitute inside information as stipulated under the Market Abuse Regulation (EU) no. 596/2014 ("MAR"). On the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.