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Oil & Gas

Scirocco Energy delighted with EAG performance amidst rising power prices

“Scirocco's 50% interest in EAG represents a robust, scalable platform primed for growth," Tom Reynolds said.

Scirocco Energy PLC (AIM:SCIR) chief executive Tom Reynolds said he is delighted with the operational performance of its EAG venture.

The company, in a statement, told investors that Greenan Generation Limited (GGL) - the first acquisition of Scirocco’s 50% owned EAG joint venture - received £300,352 of revenue in the fourth quarter.

GGL which operates anaerobic digestion facilities in the UK that generate electricity from waste saw its revenue performance supported by higher electricity prices. At current prices, earnings (EBITDA) for the first twelve months under EAG ownership is expected to be above £600,000 beating prior expectations of £470,000.

"We are delighted to see excellent operational performance supported by the current high wholesale power prices,” Reynolds said.

“EAG's experienced team have begun investing to automate and future proof the asset and are making clear headway with an attractive pipeline of opportunities to support further investment.

“Scirocco's 50% interest in EAG represents a robust, scalable platform primed for growth and we look forward to working with the team going forward."

The company also noted that EAG’s team is currently reviewing options for a feedstock optimisation programme.

Elsewhere, the company also noted progress in Tanzania where a gas joint venture is working towards the start of a seismic data acquisition survey ahead of a new gas well planned later this year.

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