Scirocco Energy PLC (AIM:SCIR) gave investors an update on its non-operated legacy asset in Tanzania, where partner ARA Petroleum is advancing talks with the authorities over a gas sales agreement (GSA).
The company, in a statement, relayed details announced simultaneously by Aminex, Scirocco’s other partner in Tanzania, confirming that seismic data capture continues at the Ntorya project – with around half of the programme now complete, it is expected that the campaign will complete by mid-October.
Sufficient data has now been captured in order to confirm the location of the planned Chikumbi-1 well and work on this interpretation is described as “almost complete”.
ARA Petroleum has agreed in principle with the Government of Tanzania to an addendum to the Ruvuma PSA in regards to gas sales and fiscal terms, Scirocco noted, and at the same time negotiations over the GSA are ongoing.
“It is pleasing to see the positive progress reported today by Aminex, which is supportive of Scirocco's ongoing exposure to the success case of the project as part of the contingent elements of the agreement for the company's divestment of its interest in the asset to APT," said Tom Reynolds, Scirocco chief executive.
Scirocco earlier this summer reached an agreement to divest its interest in Ntorya via a transaction with Wentworth Resources though the deal remained subject to certain pre-emption rights.
In August, Scirocco received confirmation from the Tanzania Petroleum Development Corporation (TPDC) that it will not exercise its right of first refusal over the Ruvuma asset. It was one of two pre-emption rights that needed to be waived in order for Wentworth to take Scirocco’s stake.
At that time, the AIM-quoted firm said that talks are ongoing with ARA Petroleum Tanzania Limited (APT), which has the other pre-emption right, about whether it intends to exercise it or not.