Scirocco Energy today received tax clearance after paying £150,000 tax for the sale of its 25% interest in the Ruvuma gas production sharing agreement in Tanzania.
CONTINGENCY PAYMENTS
The company will now write to the country’s Minister for Energy to obtain final approval of the transfer of the licence interest to purchaser ARA Petroleum Tanzania (APT).
Once approved, all conditions precedent to the transaction will be satisfied allowing Scirocco and APT to complete the transaction by the amended long stop date of 31 August 2023.
At completion, Scirocco expects to receive the balance of the completion payment of US$2.5 million.
The company is then entitled to receive a series of contingent payments depending on Ruvuma’s progress relating to a final investment decision, net share revenue and gross production levels.