Scirocco Energy PLC (AIM:SCIR) told investors it expects to receive a £108,333 payment as Reabold Resources makes distributions to former Corallian Energy shareholders.
Reabold yesterday announced it had been paid a £5.2 million milestone payment following Shell’s acquisition of Corallian a year earlier.
Scirocco is among the former Corallian shareholders to benefit. The company anticipates it will receive a £108,333 payment, equating to £1.30 per Corallian share, which adds to the initial sum received which was £67,000, or 80p.
A final contingent payment could potentially follow next year, as Shell advances the Victory field and receives approval from the North Sea Transition Authority for its development – this could trigger a further £1.10 per share payment which would take the transaction total to £3.20 per share for Scirocco.
"We're pleased to provide this update which adds cash to Scirocco's balance sheet,” chief executive Tom Reynolds said in a statement.
“The sale of legacy assets such as Ruvuma and Corallian creates optionality for the company's ongoing assessment of pathways to deliver value to investors."