Scirocco Energy PLC (AIM:SCIR) said it is working closely with APT Energy to conclude the disposal of its Ruvuma Basin assets in Tanzania by the year-end.
APT Energy exercised its pre-emption rights over the assets in July after a sale to Wentworth Resources had been agreed earlier for US$16mln.
Alastair Ferguson, Scirocco’s non-executive chairman, said: “The proceeds of the divestment - both at completion and any future contingent payments - will be available for reinvestment in assets which comply with the company's investment policy.”
Scirocco has indicated it will pivot its strategy towards sustainable energy projects in Europe once the Ruvuma sale goes through.
The company already has a 50% stake in Energy Acquisitions Group (EAG), which has a biomass operation in Northern Ireland.
EAG reported underlying profits (EBITDA) of £253,000 for the first half of 2022 with £600,000 forecast for the full year.
Overall, Scirocco posted an interim loss of £542,000 (£1.84mln profit) and held cash at the June period end of £1mln.
APT is also providing loan finance until the Ruvuma deal concludes.