Scirocco Energy PLC (AIM:SCIR) has noted the announcement by Reabold Resources PLC (AIM:RBD) regarding the conditional sale of its investee company, Corallian Energy Ltd.
In 2018, Scirocco invested a minor stake in Corallian via the subscription of over 83,000 shares at £1.50 each.
A price of up to £3.20 per share will now be paid to Corallian shareholders in initial cash plus contingent payments that will offer a profitable exit to the company.
In a statement, Tom Reynolds, chief executive of Sirocco, commented: "Following the disposal of Ruvuma interest announced on 13 June 2022 and approved by shareholders on 29 June 2022, this represents another example of Scirocco converting historical investments in oil & gas back into cash for reinvestment in support of Sirocco's investment policy approved by shareholders at AGM in July 2021."
“The proceeds of this legacy investment will strengthen the company's financial position and provide more optionality to consider the compelling investment opportunities currently being screened by our joint venture EAG," he concluded.