Following the completion of the divestment of the Company’s legacy oil & gas interests/assets and its investment in EAG, Scirocco Energy is an AIM Rule 15 Cash shell seeking to return cash and contingent proceeds, yet to be received, from its various disposals to Shareholders, expected to be via a solvent Members’ Voluntary Liquidation (“MVL”), following the cancellation of its shares to trading on AIM (the “Cancellation”).
Following shareholder approval of the Cancellation on 7 May 2024, details and further information on both the Cancellation and the proposed MVL, including expected distributions to Shareholders, can be viewed in the Circulars.
As previously stated, distributions would likely occur over the period 2024 – 2026 (and potentially 2027) and are primarily contingent on the payments listed below, linked to development of the Ruvuma field, assuming it proceeds as expected, being received:
- US$3 million payable upon Final Investment Decision (“FID”) being by the parties to the Ruvuma Asset Production Sharing Agreement or the JOA as the case may be.
- Up to US$8 million payable in the form of a 25% net revenue share from the point when Ruvuma commences delivery of gas to the gas buyer.
- Contingent consideration of US$2 million payable on gross production reaching a level equal to or greater than 50 Bcf.
The Board is now working on preparations to launch an MVL and a further circular will be published in due course with information on the MVL which will include a detailed estimate of proceeds (with appropriate disclosure of uncertainties relating to quantum and timing of future distributions). Existing and prospective investors are encouraged to read the circular by the Company on 17 April 2024 for more information on the expected MVL process to be followed.