Scirocco Energy PLC (AIM:SCIR) jumped 16% as it finally completed the sale of its 25% stake in the Ruvuma gas asset in Tanzania to APT.
In accordance with the deal, Scirocco said it had received the balance of completion payment consideration of US$2.54 million.
The cash call loan facility provided by APT and used by Scirocco to fund cash calls during the interim period has also been fully settled by completion with no ongoing associated liability.
Scirocco will be entitled to receive a series of contingent payments as Ruvuma’s development progresses.
Tom Reynolds, Scirocco’s chief executive, said: "This is a transformative divestment for Scirocco and we are delighted to have reached this watershed moment.
“With Scirocco's exit from the significant legacy investments of what was Solo Oil, this will broaden the appeal of our investment proposition amongst a significantly wider pool of prospective investors.
“The receipt of the initial consideration, and even more so upon receipt of the future contingent payments, places the company on a solid financial footing to explore and evaluate opportunities in line."
Shares in Scirocco jumped 20% to 0.45p.