Scirocco Energy plc said that ARA Petroleum Tanzania (APT) intended to exercise its pre-emption rights over the company’s sale of its Ruvuma gas interest in Tanzania.
AGREEMENTS
Scirocco had previously agreed to sell its Ruvuma interest to Wentworth Resources plc.
“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 first drawdown notice for $1.614 million which is expected to be paid by or on 5 September 2022,” said the company in a statement.
“APT has agreed to enter into all of the same agreements (and on the same terms) as Wentworth Resources plc.
“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.”
In August, Scirocco announced that Tanzania Petroleum Development Corporation (TPDC) would not exercise its statutory right of first refusal over the sale of the company’s share in Ruvuma.
ROBUST
“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,” added chief executive Tom Reynolds.