Scirocco Energy PLC (AIM:SCIR) told investors it expects to receive a third and final payment, of £91,666, for its minor equity holding in Corallian Energy which was bought by Shell from Reabold Resources.
It follows previous payments of £67,000 and £108,333, representing 80p and £1.30 per Corallian share respectively, and would mean that Scirocco will see a total per share return of £3.20 from its holding in Corallian.
For context, Scirocco in 2018 invested in Corallian at a price of £1.50 per share.
"We're pleased to provide this update which adds cash to Scirocco's balance sheet.
“The sale of these assets creates optionality for the company's ongoing assessment of alternative options and next steps."
In 2022, Shell agreed to acquire Corallian, holder of the Victory gas field asset in the North Sea, with the transaction proceeds tied to contingent project milestones. This final payment comes as Shell received Development and Production Consent from the North Sea Transition Authority.
Reabold Resources co-chief executive, Stephen Williams, in a statement yesterday, commented: “We are pleased to see development approval granted for the Victory gas field, which triggers the final tranche of the payment from Shell to Corallian's shareholders.
“This represents a significant moment in the delivery of the Reabold strategy to identify, fund and monetise underappreciated, but strategically important assets.”