AIM-listed Scirocco Energy has announced an update regarding the Ruvuma transaction
Significant progress has been made and in order to allow additional time to complete the transaction, Scirocco and ARA Petroleum Tanzania (APT) have executed amendments to extend the longstop date of the proposed transaction from 31 August to 30 September.
As announced on 3 August, Scirocco received the Tax Clearance Certificate and settled its assessed tax liability representing a major milestone towards final completion. Scirocco then wrote to the Tanzanian Minister for Energy to obtain the final approval which is expected in due course.
On receipt of this approval, all conditions precedent to the transaction will be satisfied and Scirocco and its counterparty APT will be able to proceed to complete the transaction during September.
Commenting on the update, Tom Reynolds, CEO of Scirocco, said, "The extension of the longstop date by a month allows additional time to complete the divestment of our interest in the Ruvuma asset. While the process has taken longer than originally envisaged, we continue to be encouraged by our dialogue with the relevant authorities in Tanzania and believe we are on track to complete this transformative transaction within this new timeframe."