Page 8 - AfrOil Week 26 2022

AfrOil INVESTMENT AfrOil

Gil Holzman, the co-founder and CEO of Eco and are therefore very happy to have managed
Atlantic, said that the acquisition would help to increase our [working interest] on the block.”
expand his company’s holdings in the highly Holzman went on to say that Eco Atlantic
prospective Orange basin. and the other shareholders in Block 3B/4B were
“We are extremely pleased to be increasing pushing ahead with exploration work. “We are
our interest in Block 3B/4B, which looks to working closely with our partners to progress
be a very exciting licence for all the partners the technical work required, which includes
involved. We are upbeat about the prospectiv- reprocessing the 3D seismic we have for the
ity of the licence following the significant oil block, in order to evaluate and identify drilling
discoveries made earlier in the year offshore prospects and high-grade leads for a drilling
Namibia Orange basin, and we are pleased to campaign we are contemplating for next year,”
be strengthening our working relationship with he said.
Ricocure and Africa Oil Corp,” he said. “We are Block 3B/4B covers an area of 17,581 square
seeing growing industry interest in the entire km in the Orange basin in waters ranging from
Orange Basin and in particular in Block 3B/4B, 300 to 2,500 metres deep. ™

Scirocco chair urges shareholders

to back Tanzania divestment deal

TANZANIA AIM-LISTED Scirocco Energy announced divestment of the 25% stake following the com-
on June 29 that a majority of its shareholders pletion of a formal sales process.
had voted at a general meeting to approve the Under this agreement, the latter company
planned sale of a 25% stake in Ruvuma, a natu- will pay up to $16mn for the stake in several
ral gas-bearing block in southern Tanzania, to instalments.
UK-based Wentworth Resources. Earlier this month, Scirocco said these instal-
In a statement, Scirocco noted that share- ments would include 1) an initial payment of
holders owning 63.44% of its equity had voted $3mn; 2) an additional consideration of $3mn,
in favour of the sale, while the remaining 36.56% payable upon the taking of a final investment
voted against it. These results give the company decision (FID) by the parties to the Ruvuma
a green light to move forward with obtaining PSA or joint operating agreement (JOA), as rel-
approval for the deal from the Tanzanian gov- evant; 3) deferred consideration of up to $8mn
ernment and the other partners in the Ruvuma in the form of a 25% net share of revenues from
production-sharing agreement (PSA), it said. the time at which gas from Ruvuma starts being
The company did not say when it expected to delivered to one or more buyers; and 4) a contin-
meet these milestones. gent consideration of $2mn, payable at the time
Scirocco recently signed a conditional when gross production reaches or tops the level
binding agreement with Wentworth on the of 50bn cubic feet (1.416bn cubic metres).

Wentworth sees the stake in Ruvuma as a good complement to its holdings in Mnazi Bay (Image: Wentworth)

P8 www. NEWSBASE .com Week 26 29•June•2022