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Scirocco Energy highlights new partner’s plans boost the intended sale of Ruvuma stake

Published: 07:37 23 Nov 2020 GMT

Scirocco Energy PLC - Scirocco Energy highlights new partner’s plans boost the intended sale of Ruvuma stake

Scirocco Energy PLC (LON:SCIR) has said it is now better able to advance a sales process for its 25% stake in the Ruvuma project in Tanzania.

It comes after partner Aminex PLC (LON:AEX) has completed its farm-out transaction which has 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.

READ: Aminex deal is a key development for Scirocco

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.

“Now with a clear understanding of the programme and associated budget, we can better engage with interested parties regarding our potential sales review, while simultaneously assessing our funding options for our share of the proposed work programme in the event that we remain within the JV through this work programme," said Tom Reynolds, Scirocco chief executive in a statement.

He added: “Now with a clear understanding of the programme and associated budget, we can better engage with interested parties regarding our potential sales review, while simultaneously assessing our funding options for our share of the proposed work programme in the event that we remain within the JV through this work programme."

APT is now advancing Ruvuma assets

Scirocco noted that APT has notified the joint venture that it intends to immediately start contracting and procurement for a 3D seismic programme over the Ntorya gas discovery and the drilling of the Chikumbi-1 appraisal and exploration well.

It plans to take advantage of the depressed global market for services to ensure that the programme can deliver maximum impact at the lowest possible cost.

The seismic programme aims to gather data over a 400 square kilometre area. It is slated to run through the second and third quarter of 2021. It is designed to optimise the existing data interpretation and give a better view of the project’s upside potential.

APT similarly is now advancing preparations and procurement for the Chikumbi-1 well.

The new partner has reviewed the well design, plan and the envisaged testing of the well since it has been on-board.

As a result, APT has now confirmed plans for the well and will now seek early mobilisation of a rig to Tanzania. It expects to ramp up preparation activity commencing in early 2021, including necessary site works.

It 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.

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on 13/4/23