How it's doing
Scirocco - formerly Solo Oil, an investor in early-stage exploration and small scale production in the UK and Tanzania - today told investors that it had expanded its investment strategy, screening opportunities in the energy transition space.
At the same time, Scirocco strengthened its team with the appointment of Muir Miller to the board, bringing valuable experience of the renewable energy sector into the company.
Miller was previously managing director of Peel Energy which developed and sold £121mln worth of renewable assets, clearing around £61mln of cash profits. He will non-executive director and will chair a new Sustainability Committee at Scirocco.
“Muir has a proven track record of strategic direction, business plan execution and successful delivery of low carbon assets, so we will benefit from his considerable experience as we progress our strategy within this area,” said Alastair Ferguson, Scirocco chairman.
“Muir will head up our newly established Sustainability Committee that will be responsible for developing an effective ESG strategy that supports our growth ambitions."
Scirocco’s growth ambitions envisages a company with an asset base with an enterprise value of £150mln generating £20mln of cash flow per year.
The company is already advancing its plans, with advanced talks underway for its first transaction in sustainable energy.
Scirocco highlighted that the subject of the possible deal is an energy generation asset.
Presently, the company progressing due diligence.
Commenting on Scirocco’s evolving investment strategy, Ferguson added: “Both the energy and capital markets have changed considerably since this board set its original strategy around European Energy almost two years ago.
“The combination of an abundance of compelling opportunities and wider investor appetite in the low-carbon space with an improved risk-reward ratio has resulted in us increasingly focusing our business development in this area.
“We are presently screening a pipeline of opportunities around which we believe we can grow the business and deliver sustainable shareholder value underpinned by steady cash flow, reliable dividends, and a positive ESG story.”
Kiliwani North - Solo has an 8.4% stake in the Kiliwani North field which, in 2016, gave the company its first production generated revenue.
After around 2 years of operation, Kiliwani’s single well has just gone through an upgrade programme and is yet to come back onstream.
Ruvuma - Solo also owns 25% of Ruvuma, an expansive and high potential area in Tanzania that hosts the Ntorya gas field development project.
Scirocco also owns an interest in AIM-quoted Helium One which is a non-energy, non-carbon gas exploration play.
Helium One is advancing the exploration of the Rukwa project in Tanzania which could, in time, prove to be one of the world’s largest primary, natural sources of helium – which is a critical component in high-tech medical equipment such as MRI.