Scirocco Energy PLC (AIM:SCIR) said the sale of biomass group EAG, in which it held a 50% interest, to private equity firm OrbeNovo Capital for a gross enterprise value of £2.6 million has been completed.
A net consideration of £702,000 payable to Scirocco is expected to be received today, said the statement.
Another £150,000 consideration is payable in tranches if and when EAG completes the acquisition of certain target anaerobic digestion sites.
What to do with the cash is now under consideration and is linked to receipt of the first contingent payment of US$3 million from the disposal of its interest in the Ruvuma asset, expected later this quarter, Scirocco said.
Alastair Ferguson, Scirocco chairman, said: "I am pleased to announce the completion of the divestment of our interests in EAG.
"The company is in a strong position in terms of having a clean structure, zero debt and a strong and growing cash position.
"We look forward to providing further updates on that [cash distribution] review process as appropriate."