Amendment and repayment of Prolific facility

RNS Number : 4115C

Scirocco Energy PLC

11 October 2022

 

11 October 2022

Scirocco Energy plc

("Scirocco Energy" or "the Company")

Amendment and repayment of Prolific facility

Scirocco Energy (AIM: SCIR), the AIM investing company targeting attractive assets within the European sustainable energy and circular economy markets, is pleased to announce an amendment to, and repayment schedule for, the investment facility (the "Facility") with Prolific Basins LLC, a U.S.-based investor ("Prolific").

Utilising available cash resources, strengthened by the first cash instalment received from ARA Petroleum Tanzania Limited ("APT") under the loan agreement associated with Ruvuma disposal agreement (details on which have been previously announced), Scirocco has agreed to pay, in the coming days, $200,000 to part settle the outstanding balance of the Prolific Facility, with the remaining balance of $245,000 to be paid in five equal monthly instalments of $49,000 each over the months of November 2022 to March 2023 inclusive. Provided that the Company complies with this repayment schedule, Prolific has also agreed not to request share issuances under the Facility.

Tom Reynolds, Scirocco Energy CEO commented "We are pleased to have amended the terms of the facility to enable the full settlement of the Facility without issuing further Scirocco shares. This amendment also enables the Company to retain cash flexibility in the short term.  The Facility served as a vital source of capital to retain the Company's interest in Ruvuma through the sales process, and now that the Company has a clear line of sight to completion of the divestment of that interest we are accelerating the final settlement.

Scirocco is pleased to have Prolific's continued support during a challenging time in the global markets, Prolific's investment served as an important bridge in Scirocco's cash flow requirements, and Prolific has acted as a supportive and responsible corporate citizen during its tenure as an investor in Scirocco.

Following receipt of the first funds associated with the APT loan agreement, Scirocco is in a significantly more secure financial position, which enables the Company to pay down this facility.  Crucially, as we pursue completion with APT, the Company is no longer exposed to cash calls associated with Ruvuma providing clarity on the use of funds and the ability to pursue further investment in EAG and other platforms which meet the Company's investment criteria. "

For further information:

Scirocco Energy plc Tom Reynolds, CEO Doug Rycroft, COO	[phone]
Strand Hanson Limited, Nominated Adviser James Spinney / Ritchie Balmer / Rob ert Collins	[phone]
WH Ireland Limited, Broker Harry Ansell / Katy Mitchell	[phone]
Buchanan, Financial PR Ben Romney / Jon Krinks	[phone]

 

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