Scirocco to receive £108k in latest tranche of Corallian payments

Scirocco Energy updated the market on its investment in Corallian Energy on Wednesday, following an announcement from Reabold Resources of the upcoming distribution of the next payment tranche from Shell UK for the sale of Corallian.

The sale was first announced by Reabold on 1 November last year, with the distribution of funds to former Corallian shareholders starting on Wednesday.

Scirocco Energy undertook a minor investment in Corallian in 2018 by subscribing for 83,333 shares at 150p per share.

Thus far, Scirocco said it had received an initial payment of £67,000, equivalent to 80p per Corallian share.

The AIM-traded firm expected to receive a payment of £108,333 in the latest tranche, corresponding to 130p per Corallian share.

An additional contingent payment of 110p per Corallian share remained pending.

That payment, which could bring the total potential consideration per Corallian share to 320p, would be made following the receipt of development and production consent for the Victory development from the North Sea Transition Authority (NSTA) by Shell.

“We’re pleased to provide this update which adds cash to Scirocco’s balance sheet,” said chief executive officer Tom Reynolds.

“The sale of legacy assets such as Ruvuma and Corallian creates optionality for the company’s ongoing assessment of pathways to deliver value to investors.”

At 1136 GMT, shares in Scirocco Energy were down 3.5% at 0.29p.

Reporting by Josh White for Sharecast.com.