Scirocco Energy PLC (AIM:SCIR) has said it expects a boost to the Ruvuma asset, which is in the process of being sold by the company, from an addendum to agreements in Tanzania.
The company, in a statement, highlighted comments made by the Tanzanian minister of energy talking up the government’s commitment to the development of gas resources as soon as possible, as support to accelerate production from Ruvuma to help the country satisfy a short-to-medium gas needs, and, the construction of supporting infrastructure in the coming six-to-nine months.
In a statement, Scirocco chief executive Tom Reynolds said: “As we progress towards the completion of the divestment of Scirocco's interest in Ruvuma to APT, this is a positive step which supports the development of the Ruvuma licence in due course and therefore the payment of the contingent elements associated with that transaction."
Aminex, Scirocco’s partner in Ruvuma, saw its shares surge some 30% in Monday’s early deals thanks to the upbeat messaging.
Charles Santos, Aminex executive chair, said: “We are delighted that another essential stage in developing the Ruvuma asset has been reached."
He added: “The signing ceremony was a tangible sign of the Government of Tanzania's strong commitment to the Ruvuma project, highlighting their diligent effort to increase energy production, a cornerstone of the country's economic development.
“The Ruvuma PSA Addendum is just the latest demonstration of the determination of all parties to work constructively and rapidly together to advance this significant project for the further development of the Tanzanian energy sector. We thank the Tanzanian authorities and the operator for their steadfast commitment to bringing the Ruvuma project to fruition."
Scirocco Energy in June agreed to sell its 25% interest in Ruvuma to Wentworth Resources, before ARA Petroleum (the largest shareholder in Ruvuma) notified the company that it would exercise its ‘pre-emption’ rights to take Wentworth’s place in the deal.