Scirocco Energy PLC (LON:SCIR) completed the disposal of its 28.56% interest in the Ausable Reef gas assets, though not exactly as planned.
While an agreement had been made to sell the stake to Reef Resources and Levant Exploration & Production, the AIM-listed company said in a statement on Monday that this deal was scrapped after Levant was unable to satisfy certain conditions.
As a result, Scirocco agreed to transfer the stake in the assets to Reef for a nominal consideration, and Reef has assumed the associated historic and future liabilities with effect from 1 December 2020.
Scirocco had fully written down the value of its holding in the assets to zero in 2017 and incurred only nominal costs related to its holding in the assets in 2020.
“The disposal of the Ausable Reef interest is another milestone as we transition the company away from legacy assets to pursue opportunities within the sustainable energy market in Europe,” said Scirocco chief executive Tom Reynolds.
“This removes exposure to potential contingent liabilities associated with the assets and we continue to pursue options to recycle value from other legacy assets into new investments within the Energy, Circular and Vector elements."