Scirocco Energy says Helium One oversubscribed placing is great news


Scirocco Energy says Helium One oversubscribed placing is great news

Scirocco Energy PLC (LON:SCIR) described Helium One’s oversubscribed placing as “great news”.

AIM-quoted Scirocco has been a stakeholder in Helium One for a number of years and will retain a 4.6% shareholding in the company once it completes its move to London (along with the equity placing and combination with Attis Oil and Gas).

Helium One this morning announced it had raised £6mln through an oversubscribed share placing. The company noted that the process – which set out for £5mln – had received some £8.5mln of investor demand.

READ: Helium One reveals placing was significantly oversubscribed

The proceeds will be used to fund a seismic programme and a programme of three wells, to kick off in the first half of 2021. Drilling will target the high priority Prospects at the Rukwa project.

Rukwa is host to some 21 prospects and 4 leads with prospective resource estimates to date pencilled in at 138bn cubic feet. It makes Rukwa one of the largest accumulations of helium in the world, potentially holding enough gas to meet global demand for decades.

Tom Reynolds, Scirocco chief executive, in a statement, commented: “It is great news to see that there has been such a positive reaction to the placing, and the £6 million will be sufficient for the drilling programme that they propose.

“We are confident about this transaction and what it will also mean for Scirocco and our shareholders. We look forward to being updated with progress and welcoming Helium One to AIM.”

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