The transaction is structured to de-risk the project / deal for both parties with a total consideration of up to US$16 million comprising of:
- Initial consideration of US$3 million payable on completion;
- US$3 million payable upon final investment decision being taken by the parties to the Ruvuma Asset Production Sharing Agreement or the JOA;
- Deferred consideration of up to US$8 million payable in the form of a 25% net revenue share from the point when Ruvuma commences delivery of gas to the gas buyer;
- Contingent consideration of US$2 million payable on gross production reaching a level equal to or greater than 50Bcf.
In addition, Wentworth will provide Scirocco with a loan of up to US$6.25 million to meet all cash calls pursuant to the Ruvuma JOA arising between 1 January 2022 and expected completion.
The deal represents the next step for Scirocco in its strategic move into the energy transition sector – providing both capital for further investments and alleviating the need for the Company to raise additional funds to meet the cashcall requirements of the Ruvuma PSA.
The link to the company RNS is here.