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Scirocco Energy pleased with progress at Ruvuma as attention shifts to Europe

Snapshot

  • Ruvuma stake up for sale
  • Wants more control in future ventures
  • Looking at European gas assets
Tanzania

Quick facts: Scirocco Energy PLC

Price: 1.075 GBX

AIM:SCIR
Market: AIM
Market Cap: £7.78 m
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How it's doing

Solo Oil PLC (LON:SOLO) is to switch its strategy going forward towards energy transition opportunities in the European power sector including gas storage, gas peaking and battery storage.

Earlier this year, Solo terminated a deal to acquire producing assets in the Netherlands from One-Dyas due to the fall in the gas price.

Previously, in March, Solo Oil confirmed it had set up a data room for anyone interested in acquiring its 25% stake in the Ruvuma PSC. A formal sales process got underway at that time.

Assets

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 already hosts the Ntorya gas field development project.

Here, the asset development is set to be driven by The Zubair Corporation (APT) which is acquiring a 50% stake in Ruvuma via a farm-out transaction with current operator Aminex. It will leave Aminex with 25% of the asset, the same as Solo.

Zubair plans to conduct a minimum work programme targeting a minimum gross rate of 40mln cubic feet of gas per day (MMcf/d) which amounts to 6,700 barrels equivalent. It also plans to drill a new well Chikumbi-1.

How it's doing

In November, Sicorocco said it was now better able to advance a sales process for its 25% stake in the Ruvuma project in Tanzania after partner Aminex completed its farm-out transaction which brought in APT into the project.

APT is running and funding a programme of work to take Ruvuma’s Ntorya gas field into production whilst potentially expanding the asset through exploration.

Scirocco, in a statement, told investors that APT now has a clear roadmap of operational activity that will better define the potential of Ntorya, which is believed to be a world-class discovery.

APT plans to start drilling the Chikumbi-1 well by January 2022 and it has estimated a revised budget of US$22.8mln gross – which would mean Scirocco’s share would by US$5.7mln.

Scirocco also has a 4.6% stake in Helium One, which has now listed in London. 

What the boss says: Chief operating officer, Doug Rycroft

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Scirocco plan to 'push forward Ruvuma project in Tanzania'

Scirocco Energy PLC's (LON:SCIR) Doug Rycroft joins Proactive London to discuss their plan to push the Ruvuma project in Tanzania forward by advancing their sales process for its 25% stake. This comes after partner Aminex PLC (LON:AEX) completed its farm-out transaction which has brought in...

on 23/11/20

2 min read