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Scirocco Energy PLC (SCIR)

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Thursday 05 November, 2020

Scirocco Energy PLC

Helium One Update

RNS Number : 3612E
Scirocco Energy PLC
05 November 2020
 

5 November 2020

 

Scirocco Energy plc

("Scirocco" of "the Company") 

Helium One Update

Scirocco Energy (AIM: SCIR), the AIM investing company targeting attractive production and development opportunities within the European energy market, is pleased to note the announcement regarding the proposed merger of Helium One Global Limited ("Helium One") with the AIM Rule 15 cash shell, Attis Oil & Gas Ltd (AIM: AOGL), to form an enlarged entity to be admitted to trading on AIM ( https://www.londonstockexchange.com/news-article/AOGL/proposed-amalgamation-of-attis-and-helium-one/14744560 )

Highlights relating to Scirocco's interest in Helium One:

· Minimum fundraise of £5 million by Helium One will ensure Helium One is funded for an exciting exploration drilling programme planned for Q1/Q2 2021 to test a subset of identified prospects

· The deal is expected to provide Helium One shareholders with a more liquid trading platform

· Provides Helium One with better access to capital to fund ongoing operations

· Transaction provides Scirocco with meaningful exposure to a listed entity with a near-term high impact drilling campaign presenting potential multiple catalysts for value appreciation

· Scirocco holds 21,297,388 shares in Helium One, which following completion of the transaction and based on the minimum raise of £5 million by Helium One, is expected to represent c. 4.6 per cent. of the enlarged entity's share capital, and equates to a holding value of c. £605,000

· Scirocco also holds 1 million share options in Helium One, with a strike price of US$0.035 (c. 2.70 pence) (noting that the transaction price per share is 2.84 pence), which the Board will monitor and manage with the objective of optimising value for Scirocco

Helium One Highlights:

· Helium is a vital and irreplaceable element which is used globally by many industries and is an essential component material in modern technologies including key growth areas in medical, technology and aerospace sectors. 

 

· Helium One has identified a globally unique, large-scale, high-grade, primary helium project in Tanzania which has strategic global implications in resolving the supply-constrained helium market.

 

· The Rukwa Project is an advanced exploration project with 21 Prospects and 4 Leads based on reprocessed seismic lines, high resolution gravity survey, and surface seeps of up to 10.5% He.

 

· Independently verified (SRK Consulting) 'Best Estimate' Unrisked Prospective Resource of 138 Bcf (2U/P50) for the Company's Rukwa Project. The 2U Risked Prospective Resource is estimated at 14.0 Bcf.

 

· Five years of Tanzanian operating experience with drilling planned for Q1/Q2 2020.

Commenting on the transaction, Scirocco's CEO Tom Reynolds said:

"This is a positive development that validates Helium One's story and provides it with a platform from which it can deliver material growth.  The valuation read across highlights the challenging market conditions at this time, but in our view, it's far more important that we now have exposure to a very exciting story with a listing on a recognised exchange.  The exceptionally strong performance of other listed helium companies around the world in recent times gives us confidence in the value creation that Helium One can deliver following this listing, especially with such meaningful catalysts on the near-term horizon.  As a long-term shareholder in Helium One, we wholly support this development and look forward to conclusion of the process."

Helium One CEO, David Minchin, commented: "We are delighted to be able to bring Helium One to the London market.  Not only is Helium One one of the few companies with a globally significant resource seeking to address the current helium supply crisis, it could also become the only company on AIM where investors can get involved with the exciting and expanding helium space.  Helium One plans to pursue an aggressive exploration and development plan starting with drilling in Q1/Q2 next year." 

 

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.  Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

 

For further information:

Scirocco Energy plc

Tom Reynolds, CEO

Doug Rycroft, COO

+44 (0) 20 7466 5000

 

Strand Hanson Limited, Nominated Adviser & Broker

James Spinney / Ritchie Balmer / Rory Murphy

 

+44 (0) 20 7409 3494

 

 

Buchanan, Financial PR

Ben Romney / Kelsey Traynor / James Husband

 

+44 (0) 20 7466 5000

 

 

 

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