TIDMSCIR

RNS Number : 7177B

Scirocco Energy PLC

14 June 2021

14 June 2021

Scirocco Energy plc

("Scirocco Energy" of "the Company")

Full-Year Results 2020 and Notice of AGM

Scirocco Energy (AIM: SCIR), the AIM investing Company targeting attractive production and development opportunities within the European energy market, is pleased to announce its audited annual results for the period ended 31 December 2020. The Company is today posting its Annual Report and Accounts to those Shareholders that have elected to receive it by post, along with the Notice of AGM. Both documents will be made available on the website shortly.

Period and Post-Period Highlights

-- In April 2020, the Joint Venture for the Ruvuma asset received the extension of the Mtwara Licence in respect to the Ntorya Location from the Ministry of Energy of Tanzania

-- In June 2020, the Company entered into an investment facility for up to US$5,000,000 with Prolific Basins LLC

-- In November 2020, Aminex plc announced that it had completed the farm-out of 50% of its ownership interest in the Ruvuma PSA to ARA Petroleum Tanzania Limited ("APT"); consequently APT have assumed the role of operator under the Ruvuma PSA

-- Continued focus on cost discipline, including salary sacrifices and implementation of option based remuneration for Executives

   --      Completed the name change and rebrand to Scirocco Energy plc 

-- Helium One successfully completed its admission to trading on AIM ("Admission"), at the point of Admission, Scirocco held 21,297,388 shares in Helium One, which represented an interest of c.4.6% in the share capital, and 1 million share options

-- Continued with the formal process to explore value realisation for its assets in Tanzania with encouraging level of interest

-- In February 2021, Scirocco Energy announced the further development in its strategic focus, identifying various near-term investment opportunities within the low-carbon space, including renewable energy, circular economy and energy storage and transfer

-- To support the augmented strategy, with an increased focus within the low-carbon space, the Company appointed Mr. Muir Miller as an Independent Non-Executive Director, adding specialist experience to support this strategy development as Scirocco Energy moved into the execution phase

-- Today, the Company also announced its proposed investment in Energy Acquisitions Group Ltd ("EAG"), a specialist acquisition and operating vehicle in the sustainable energy sector. The investment in conditional on shareholder approval for a change in the Company's investing policy, which is being sought at the Company's upcoming Annual General Meeting.

The Company's Annual General Meeting ("AGM") will be held at 2 p.m. BST on 9 July at The Bonham Hotel, 35 Drumsheugh Gardens, Edinburgh EH3 7RN.

The Board continues to monitor the COVID-19 situation and the UK Government's guidance on social distancing and public gatherings at annual general meetings. The Board recognises that the Annual General Meeting typically represents an opportunity to engage with members and provides a forum that enables members to ask questions of, and speak with, the Board. Our preference would be to welcome shareholders in person to our 2021 Annual General Meeting, particularly given the constraints we faced in 2020 due to the COVID-19 pandemic.

However, at present there are restrictions placed on the amount of people who can gather indoors. Although there is some flexibility for people gathering in a workplace, the Annual General Meeting does not fall into this category under current government guidelines. We are therefore currently proposing to hold the Annual General Meeting with the minimum attendance required to form a quorum with access to the venue for other non-essential attendees being restricted. Shareholders are strongly requested not to attend the meeting in person and Shareholders or others attempting to attend the Annual General Meeting in person may not be permitted entry. Shareholders are strongly encouraged to therefore submit their votes on all resolutions as early as possible by returning the Form of Proxy included with this Circular, or transmitting a CREST Proxy Instruction (if applicable), appointing the 'Chair of the Meeting' as their proxy.

To be valid, Forms of Proxy should be completed, signed and returned so as to be received by the Company's registrars, Share Registrars Limited, at The Courtyard, 17 West Street, Farnham, Surrey, GU9 7DR, as soon as possible, but in any event so as to be received not later than 48 hours (excluding non-working days) before the time of the Annual General Meeting, being 2 p.m. on 9 July 2021. Please refer to the detailed notes contained in the Notice of Annual General Meeting and the Form of Proxy.

If you hold your Ordinary Shares in uncertificated form you may appoint a proxy by completing and transmitting a CREST Proxy Instruction in accordance with the procedures set out in the CREST Manual so that it is received by the Registrars (under CREST Participation ID 7RA36 by no later than 2 p.m. on 7 July 2021. The time of receipt will be taken to be the time from which the registrar is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST.

Given the constantly evolving nature of the situation, should the circumstances change before the time of the Annual General Meeting, we want to ensure that, to the extent that it is reasonable and practicable to do so, we are able to adapt arrangements and to welcome shareholders to the Annual General Meeting, within safety constraints and in accordance with government guidelines. We will notify shareholders of any change as early as possible before the date of the Annual General Meeting. Any updates to the position will be included on our website ( https://www.sciroccoenergy.com/ ) and by RNS announcement.

Tom Reynolds CEO commented: ""Over the past year we have progressed our transition as a Company as we formally became Scirocco Energy. While we continue to look at value realisation options for our Tanzanian assets and benefitted from enhanced value from our shareholding in Helium One, it is the recent post-year highlights that reflect our strategic direction of travel. Through our investment in EAG and subsequent transaction in the Anaerobic Digestion space, we are now well positioned to take advantage of the growing opportunity in the sustainable energy sector. This initial investment, while relatively small, provides a springboard for further near-term growth in the broader renewables environment. We would like to thank shareholders for their patience through this transitional period and look forward to a busy year ahead as we progress our various operational and corporate initiatives."

For further information:

 
 Scirocco Energy plc 
  Tom Reynolds, CEO                                +44 (0) 20 7466 
  Doug Rycroft, COO                                 5000 
 
   Strand Hanson Limited, Nominated Adviser          +44 (0) 20 7409 
   James Spinney / Ritchie Balmer / Rory Murphy      3494 
 
   WH Ireland Limited, Broker                        +44 (0) 0207 220 
   Harry Ansell / Katy Mitchell                      1666 
 
   Buchanan, Financial PR                            +44 (0) 20 7466 
   Ben Romney / Kelsey Traynor / James Husband       5000 
 

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014, and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

 
CHAIRMAN'S STATEMENT INCORPORATING THE STRATEGIC REPORT 
 FOR THE YEARED 31 DECEMBER 2020 
On behalf of the Board of Directors, I hereby present the financial 
 statements of Scirocco Energy plc (the "Company") for the year ended 
 31 December 2020. 
 2020 was a challenging year for all companies in the energy sector 
 regardless of size. That being said, it was another year of transition 
 for our Company as we completed our transformation into Scirocco 
 Energy and continued to make headway with our core assets and new 
 strategy. In my capacity as Non-Executive Chairman of the Company, 
 I am pleased to provide a review of the financial year for 2020, 
 as well as the outlook for 2021. I would also like to take this opportunity 
 to thank shareholders for their patience as we implement a refreshed 
 strategy in a difficult environment. 
 
Market Environment 
 
It cannot be overstated how challenging the market backdrop was through 
 2020. The level of disruption and uncertainty caused by COVID-19, 
 together with a significant drop in both demand and pricing in the 
 oil and gas sector, has resulted in a period of unprecedented change. 
 The small cap E&P environment was already facing numerous challenges 
 in terms of access to capital and a seismic shift in investor sentiment, 
 and this was undoubtedly exacerbated by the issues caused by the 
 pandemic. The uncertain outlook and severe commodity pricing volatility 
 created challenges in transacting as appetite for new ventures diminished 
 and valuation expectations differed between vendors and acquirers. 
 
At the same time this changing landscape and structural overhaul 
 of the global energy mix is creating new opportunities for those 
 willing to transform. It has forced companies to think differently 
 about the future of energy, with many seeing this as an inflection 
 point for companies in this sector to embrace change and be part 
 of the energy transition; something Scirocco had already identified 
 as a key part of its future. 
 
Strategy and Portfolio 
 
The Board's early decision in 2020 to augment the new strategy and 
 to invest in the broader European Energy Market was prescient, with 
 a significant amount of work being put into identifying potential 
 investment opportunities through 2020. In doing so we have developed 
 some important new relationships and prospective partnerships which 
 will be key to the future of the Company. 
 
The year started with the decision to not progress with the ONE Dyas 
 transaction, which although disappointing at the time, given the 
 subsequent events in the sector, we remain convinced that this was 
 the right decision both then and now. During this period, the Board 
 also made the decision to implement cost discipline and cash management 
 strategies which were maintained throughout the year. This was part 
 of a wider focus to continue the development of the Company's governance 
 structures and policies so as to ensure that they are in place to 
 support the growth plan. 
It was the second half of the year that saw progress of the portfolio 
 and further implementation of the strategy. In June, the Company 
 announced it had secured an appropriate funding structure through 
 the investment facility ("Facility"), with Prolific Basins LLC, a 
 US based specialist energy investor which created optionality for 
 financing. Although we have only drawn down a limited portion of 
 the Facility, it has been key to ensuring that we can fund our position 
 in Ruvuma and at same time allow time to secure the best deal through 
 the sale process. 
 
Q4 was in particular a strong quarter to end the year, with significant 
 developments in our portfolio of assets. In October, Aminex ("AEX") 
 announced that it had completed the farmout of 50% of its ownership 
 in the Ruvuma PSC to ARA Petroleum Tanzania ("APT"). This cleared 
 an important obstacle to progress and at the same time provides further 
 validation for the valuation that we consider appropriate. While 
 our sales review of Tanzanian assets had commenced much earlier in 
 the year, it was only upon completion of AEX/APT transaction that 
 we began to progress commercial discussions, and this dialogue continues 
 with a number of interested parties. In a short amount of time following 
 the change of ownership and operatorship, ARA has moved swiftly to 
 seek approval of a work program and budget to acquire a 400 sq km 
 3D survey. In parallel, APT announced the contracting and procurement 
 of the services for the drilling of the Chikumbi-1 well. That well 
 is a material value catalyst for the Ruvuma JV, and our involvement 
 in it depends on the outcome of the ongoing discussions with potential 
 suitors. 
 
 
In November, Helium One Global Limited merged with the cash shell 
 of Attis Oil & Gas to form an enlarged entity called Helium One on 
 AIM, of which Scirocco Energy owned 4.3% at the time of the IPO. 
 Helium One has identified a globally unique, large scale primary 
 helium project in Tanzania called the Rukwa Project, which has strategic 
 global implications in resolving the supply-constrained helium market. 
 The listing on AIM provides Scirocco with a liquidity platform to 
 monetise this legacy investment at the appropriate time. The stock 
 has performed well since its listing and we will continue to assess 
 its progress in line with our own monetization objectives. 
Through the period, the Company continued to also look for acquisitions 
 or investments that would fit the new strategy focused on the energy 
 transition and were able to provide updates in the period post year-end. 
 The screening process has been intense, despite the challenges caused 
 by the pandemic, and we continue to progress a number of interesting 
 opportunities. 
 
In February 2021, the Company was able to provide further updates 
 of its strategy as it looks to focus on near-term investment opportunities 
 in the low-carbon space focused on three asset classes; renewable 
 energy, circular economy and energy storage and transfer. By constructing 
 a portfolio within this space and with well defined investment criteria, 
 the Board believes it will offer shareholders and investors exposure 
 to cash generative investments with an attractive risk/reward ratio 
 within the sustainable energy ecosystem and the ability to deliver 
 shareholder value through dividends and capital growth. If we have 
 seen anything in 2020, it was a catalyst year in terms of a move 
 away from traditional fossil fuels, and the Board believes the Company 
 is well positioned to now focus on these new investment channels 
 for a sustainable future. 
 
As part of this development in the strategy, we also announced the 
 appointment of Mr Muir Miller to the Board on 18 March 2021. Muir 
 brings a wealth of skills and experience in the low carbon sector. 
 He is already making a significant contribution to the way we are 
 approaching investment in the transition energy space. 
 
Prior year adjustments 
 
In the current year, there has been an adjustment to the figures 
 previously reported in 2-019. The investment in Corallian Energy 
 Limited was incorrectly classifed as an intangible asset and has 
 subsequently been reclassified as an unquoted equity investment. 
 Details of this can be found in note 30. 
 
Outlook 
 
The Company is fully committed to the new strategy and has already 
 identified a number of opportunities within its new area of focus 
 with a target to deliver an invested asset base of GBP150 million 
 capable of generating cash flow of circa GBP20 million per annum 
 within five years. The announcement of the EAG deal and Greenan acquisition 
 in June is an important first step into the transition energy space 
 and specifically the Anaerobic Digestion sector, more commonly known 
 as biogas or "AD". It is indicative of the type of opportunity we 
 are pursuing. It provides a solid foundation on which to build and 
 the Board and Management look forward to explaining more about this 
 deal and to updating shareholders on progress with other transactions 
 throughout the year. 
 
With regards to the existing portfolio, we remain very confident 
 of the commercial attractiveness of the legacy investments in Tanzania 
 and believe that we are on the cusp of further positive developments 
 this year. The new operator is developing a work programme which 
 will optimise the value of resources at Ruvuma. We believe this will 
 offer an attractive development project to a prospective buyer of 
 the Scirocco interest. I would like to assure shareholders that we 
 continue to strive to secure the best possible value for our interests 
 based on the market dynamics and we look forward to updating shareholders 
 in due course. 
 
The portfolio review has also progressed with the divestment of our 
 stake in Reef Resources which was announced in March. 
 
 
Section 172 (1) Statement 
 
The Company was admitted to the AIM Market of the London Stock Exchange 
 on 12 April 2007 and has been a public company from this date. The 
 Company is required to provide a Section 172(1) statement under the 
 terms of its AIM listing. This disclosure aims to describe how the 
 Directors have acted to promote the success of the company for the 
 benefit of its members as a whole, taking into account (amongst other 
 matters) the matters set out in section 172(1)(a) to (f) of the Companies 
 Act which are set out below. 
 
(a) the likely consequences of any decision in the long term 
As previously discussed, the deal with ONE DYAS did not go through 
 in the current year. The Company has not made any other decisions 
 which will likely affect the company in the long term in the current 
 financial year. 
 
(b) the interests of the company's employees 
Aside from the Directors, the Company does not have any other employees. 
 
(c) the need to foster the company's business relationships with 
 suppliers, customers and others 
Aside from a small number of service providers, the success of the 
 Company's investment strategy will be driven in part by the business 
 relationships that exist between the Directors and the management 
 of other oil and gas companies and as such the maintenance of such 
 relationships is given a very high priority by the Directors. 
 
(d)the impact of the company's operations on the community and the 
 environment 
During the current investment phase the Company has no operations. 
 The Directors are nevertheless cognisant of the potential impact 
 of future investments on affected communities and the environment 
 and such factors will continue to be considered as part of investment 
 appraisal and decision making. 
 
(e) the desirability of the company maintaining a reputation for 
 high standards of business conduct 
The Company's standing and reputation with other oil and gas companies, 
 equity investors, providers of debt, advisers and the relevant authorities 
 are key in the Company achieving its investment objectives and the 
 Company's ethics and behaviour, as summarised in the Company's Business 
 Principle and Ethics, will continue to be central to the conduct 
 of the Directors. The Company is advised by blue-chip experienced 
 advisers which also assist in maintaining high standards of conduct. 
 
(f) the need to act fairly as between members of the company 
The Directors will continue to act fairly between the members of 
 the Company as required under the Companies Act, the AIM Rules and 
 QCA corporate governance principles. 
 
Conclusion 
 
In summary although our progress this year was significantly affected 
 by external events, we believe that 2020 will prove to be a definitive 
 inflection point for both the Company and the energy sector in general. 
 
It feels like there has been a generational shift in thinking which 
 is going to lead to significant changes and opportunities in the 
 transition of the energy sector. The companies that recognize this 
 and move quickly to transform will be the beneficiaries, and the 
 Board feels that Scirocco is already well down this path and will 
 benefit from forward thinking and early mover advantage. 
 
I can re-assure our shareholders that the transformation within the 
 company is well underway and believe the change of name to Scirocco 
 Energy at the AGM in 2020 was well timed. It is both symbolic and 
 indicative of where we would like to take the Company, and see our 
 repositioning in the last couple of years as essential strategic 
 events that will benefit the Company in the near-term and beyond. 
 
The Board is excited and fully engaged in the transformation to the 
 transition energy space. 
 
 
We see significant opportunities for value creation for a company 
 with the right strategy, the right partners and focused on the right 
 opportunities. We remain convinced that the future lies in the low 
 carbon sector. We have been laying the building blocks to ensure 
 we can be a part of this future, and believe that 2021 will be the 
 year when our hard work behind the scenes results in value accretive 
 transactions for the benefit of the Company and its shareholders. 
 
Once again I would like to thank the Board and the Executive Team 
 for their dedication and commitment and thank our shareholders for 
 their patience and understanding. 
 
Alastair Ferguson 
Non-Executive Chairman 
Date: 14 June 
 2021 
 
 
 
Strategic Report 
 
Tanzania 
 
Scirocco continues to hold a number of licence interests in natural 
 gas and industrial gas assets in Tanzania. 
 
These projects were selected for their significant subsurface potential 
 with existing reserves, significant prospective resources and proximity 
 to existing infrastructure location. The Company continues to believe 
 that the projects are well positioned to deliver investor returns 
 through both operational events and monetisation opportunities. 
 
Despite challenges to operational progress in 2020, due in part to 
 the effect of COVID-19 on operations, the Board believes that all 
 projects made progress from a technical evaluation and planning perspective. 
 
A.                                              Ruvuma PSA 
 
                                                ARA Petroleum Tanzania                                  50%  * 
                                                Limited ("APT") 
 Aminex plc ("AEX")                                                                                     25% 
 Scirocco Energy plc                                                                                    25% 
 
 * APT became operator in October 2020 following the completion 
  of its farm-in to the AEX working interest 
 
In 2020 Scirocco held a 25% working interest in the Ruvuma Petroleum 
 Sharing Agreement ("Ruvuma PSA") in the south-east of Tanzania covering 
 an area of 3,447 square kilometres of which approximately 90% lies 
 onshore and the balance offshore. The Ruvuma PSA is in a region of 
 southern Tanzania where very substantial gas discoveries have been 
 made offshore in recent years and where gas has also been discovered 
 onshore and along the coastal islands at Ntorya, Mnazi Bay, Kiliwani 
 North and Songo-Songo. 
 
License Extension 
 
In April 2020, the Joint Venture formally received the extension 
 of the Mtwara Licence in respect to the Ntorya Location from the 
 Ministry of Energy of Tanzania. The extension, which was applied 
 for in late 2017, is valid for one year. Under the terms of the extension 
 the Joint Venture must carry out the following work programme: 
 
 
     *    Acquire 200 square kilometres (surface coverage) of 
          3D seismic (min. expenditure of US$7 million) 
 
     *    Drill the Chikumbi-1 exploration well (min. 
          expenditure of US$15 million) 
 
     *    Complete the negotiation of the Gas Terms for the 
          Ruvuma PSA with the Tanzania Petroleum Development 
          Corporation 
 
 
     *    Using the data gathered from Chikumbi-1 and the 
          seismic acquisition, prepare and submit an 
          application for a Development Licence for the Ntorya 
          Location. 
 
2020 Operational Update 
 
The proposed gross 2020 contingent work programme and budget for 
 Ruvuma included approximately US$40 million of drilling and seismic 
 work. However due to delays in receiving the approval for the completion 
 of the APT and Aminex farm-in and the restriction in international 
 travel resulting from the COVID-19 pandemic the Joint Venture was 
 unable to make significant operational progress on the asset during 
 the period. Had the work programme been executed as budgeted Scirocco 
 would have been expected to fund approximately US$10 million. 
 
 
 
During 2020 (and before the transfer of operatorship to APT in October 
 2020), the operator, Ndovu Resources Limited (a wholly owned subsidiary 
 of Aminex plc), completed an updated well design for the Chikumbi-1 
 exploration well and redesigned a significantly larger 3D seismic 
 programme than was originally planned. The changes to the seismic 
 programme reflect the intent of the Joint Venture to gather all of 
 the information required in order to rapidly progress an early production 
 scheme and then a full-field development delivering early cashflow 
 from the Ntorya gas field. 
 
Technical Overview 
 
During 2018 the Joint Venture conducted technical work with the support 
 of RPS Energy Consultants Limited, on the resource estimates, and 
 by IO Consulting, on the development engineering and economics, leading 
 to the upgraded resource estimates included in Table 1. The independent 
 studies now estimate gross 2C contingent resources of 763 bcf, of 
 which 191 bcf are net to Scirocco's working interest, equivalent 
 to approximately 31.8 mmbbls oil equivalent. 
 
Resource summary - Ntorya Field 
 
                                                                       Gross Licence Basis (bcf) 
                                                                                           Gross Mean unrestricted 
 Licence                                               1C       2C                  3C                        GIIP 
 Mtwara               Development pending              26       81                 213 
 Mtwara               Development unclarified         324      682                 950                       1,870 
                                                               763 
 
Resource summary excluding Ntorya Field 
 
                                                         Prospective Resources (bcf)* 
                                                               Gross on Licence 
 Prospect/Lead                                   1U    2U       3U       Mean unrisked                        Pg % 
 Chikumbi Jurassic                              399   936    1,798             1,351**                        8*** 
 
 *                   Assuming development licence is ratified 
 **                  P50 
 ***                 RPS assessment of PG 
 
B.    Kiliwani North Development Licence ("KNDL") 
 
Scirocco holds a 8.3918% working interest in the Kiliwani North Development 
 Licence. This interest was finalised following the exit of Bounty 
 Oil and Gas NL from the Joint Venture. TPDC has a back-in right to 
 take up an interest in the KNDL which would reduce Scirocco's interest 
 to 7.975%. To date TPDC has not taken up that right. 
 
2020 Operational Update 
 
As a result of reservoir pressure decline and compartmentalisation, 
 the Kiliwani North-1 well has not produced during the period. 
 
The well has produced approximately 6.4 bcf of gas to date from a 
 compartment estimated to contain approximately 10 BCF. Estimated 
 gas resources have been independently audited by RPS Energy, who 
 show the Kiliwani North structure to contain approximately 31 bcf 
 (gross mean GIIP). 
 
The Joint Venture has been exploring various options to reinstate 
 production from the well. The Operator has prepared, and is awaiting 
 approval for, a remedial work programme intended to establish fluid 
 levels in the well bore, measure reservoir pressure and to unload 
 fluid using foam treatment technology. 
 
 
 
Aminex (the operator) undertook preliminary remedial work to repair 
 the downhole safety valve in late 2018. This resulted in the flow 
 of a small volume of gas to the gas facility before the well quickly 
 ceased flow, likely due to fluid build-up in the wellbore. Aminex 
 has prepared a perforation strategy for a lower zone within the reservoir 
 and an alternative remedial work programme intended to establish 
 fluid levels in the wellbore, reservoir pressure and to unload potential 
 fluid using foam treatment. The operator is working with the TPDC 
 on agreed methods to handle wellbore fluids which will potentially 
 be unloaded during operations on the well. Agreement and planning 
 will be required prior to starting operations. 
 
If successful, this operation is expected to re-establish gas production 
 from the well. The Joint Venture has been waiting on final approvals 
 for a significant period of time and whilst the Joint Venture is 
 confident that the unloading and perforation operations can be carried 
 out, there is no firm timeline on when the approvals will be granted 
 which would allow the operation to commence. The Joint Venture estimates 
 that once approvals are in place the work could be carried out within 
 a 3 - 6 month time period subject to travel restrictions associated 
 with the ongoing COVID-19 pandemic being lifted. 
 
A resource report by LR Senergy, completed in May 2015, attributed 
 approximately 28 bcf gross best estimate contingent resource to the 
 Kiliwani North field. These estimates were revisited by RPS in 2018 
 following production over an 18-month period totalling approximately 
 6.4 bcf. This resulted in a new Pmean GIIP of 30.8 bcf and a remaining 
 gross 2P reserve of 1.94 bcf. It is felt that with further intervention 
 additional gas can be recovered from the KN-1 well. 
 
The Operator continues to meet regularly with the relevant Tanzanian 
 authorities, on behalf of the Joint Venture, to discuss and resolve 
 the issue of outstanding receivables from previous gas sales from 
 KNDL. 
 
The well has not produced since the first quarter of 2018, during 
 which the Kiliwani North-1 ("KN-1") well produced intermittently. 
 The intermittent production was mainly as a result of increased water 
 production, natural reservoir depletion and a relatively high inlet 
 pressure at the Songo Songo Island Gas Processing Plant ("SSIGPP"). 
The Joint Venture has identified the possibility of perforating a 
 lower and potentially gas saturated section of the reservoir. Operator 
 conducted analysis indicates the possibility of providing up to 8 
 bcf of additional resource from KN-1. The Joint Venture will continue 
 to consider plans for 3D seismic acquisition over Kiliwani North 
 to support the identification of further drilling or side-track opportunities 
 which may be required to drain the remainder of the structure. 
 
C.             Helium One 
 
Scirocco was an early investor in and largest (pre-IPO) shareholder 
 of Helium One Limited ("Helium One") following an original equity 
 subscription in 2017 and participation within a convertible loan 
 note issuance in early 2019. Immediately prior to the company's IPO 
 in December 2020 Scirocco held a c. 12% interest. 
 
Operational Update 
 
Throughout the period Helium One has been actively focused on a number 
 of key activities to progress the project, including - 
 
 
i) IPO 
 
A key objective for Helium One was to complete an IPO on a recognised 
 stock exchange to provide access to capital for ongoing investment. 
 This objective was achieved in early December 2020 when it completed 
 its admission to the AIM market of the London Stock Exchange following 
 the amalgamation with Attis Oil and Gas. The IPO highlights included; 
 
 
      *    Successfully raised GBP6 million by way of an 
           oversubscribed placing of 211,267,597 ordinary shares 
           with institutional and other investors at a price of 
           2.84 pence per Ordinary Share-- 
 
      *    Large-scale, high-grade primary helium project with 
           un-risked prospective helium resource (2U/P50) of c. 
           138 bcf; 
 
      *    Management team with an extensive track record of 
           exploration, development and operations in Africa 
 
      *    Fully funded for exploration programme commencing in 
           Q1/Q2 2021 consisting of infill seismic acquisition 
           and three well drilling programme targeting high 
           priority Prospects over the Rukwa Project 
 
Immediately following the IPO, Scirocco held a 4.29% interest in 
 Helium One. 
 
ii) Drilling and Seismic programme 
 
Following the IPO and the securing of funding to execute the drilling 
 programme the company has made significant operational progress towards 
 its initial exploration drilling programme including the commencement 
 of a 150km infill seismic campaign targeting shallow trap structures 
 identified from the interpretation of historic seismic and recent 
 gravity gradient data. The infill seismic data will provide improved 
 resolution on identified trap structures and assist with optimising 
 the exploration drilling programme. 
 
iii) Seismic campaign 
 
In February 2021, Helium One announced that it had commenced the 
 150km infill seismic campaign with the objective of providing improved 
 resolution over identified drill targets. 
 
Close spaced seismic data acquisition will be focussed in areas of 
 known prospectivity to assist in providing greater clarity on the 
 subsurface structures which Helium One believe have the highest chances 
 of successfully discovering Helium. The seismic campaign is fully 
 permitted and benefits from strong community and governmental support. 
iv) Drilling campaign 
 
The company has made significant progress in the operational readiness 
 for the drilling campaign scheduled to commence in Q2 2021, including: 
 
 
      *    Completion of Environmental and Social Impact 
           Assessment (ESIA) and Compensation Survey, including 
           consultation with communities in nine villages 
           closest to the drill locations. 
 
      *    Submission of key Environmental Impact Assessment for 
           the Company's proposed drilling programme at the 
           Rukwa Project to the National Environment Management 
           Council (NEMC) of the Tanzanian Government. 
 
      *    The study, which covers a project area of 310km2 in 
           three prospecting licences (PL10712/2015, 
           PL10713/2015 and PL10727/2015), is a key document in 
           securing environmental permits for exploration 
           drilling. 
 
      *    Appointment of Mitchell Drilling Limited, a global 
           leader in drilling technologies with over 50 years' 
           experience and 115 rigs globally, as drilling 
           contractor for the Company's three well exploration 
           programme. 
 
 
Investment Summary 
 
Helium One owns exploration licences in a number of highly prospective 
 helium properties in Tanzania. Scirocco's investment in Helium One 
 has proved to be a success and a good strategy for the Company as 
 the share price has increased from 7.25 pence per share at 31 December 
 2020 to 21.40 pence per share at the date of authorisation of the 
 financial statements. 
 
Originally identified by means of helium macro-seeps the prospects 
 under investigation by Helium One have been mapped using soil geochemistry 
 anomalies, airborne geophysical tools and on legacy 2D seismic data 
 acquired previously during the 1980s. The identified macro-seepage 
 indicates high concentrations of helium (up to 10% by volume) in 
 association with nitrogen that may be trapped in the subsurface. 
 
Resources associated with the project have been independently assessed 
 by SRK Consulting (2019) and the most mature of the projects, in 
 the Rukwa Basin of the East African Rift Valley, have been verified 
 as potentially holding gross unrisked best estimate prospective recoverable 
 volume of 138 bcf of helium in place. 
 
Global helium demand is approximately 6 bcf per annum. Supply is 
 delivered by extracting helium from hydrocarbon production projects 
 in a number of countries including the USA, Qatar, Algeria and Russia. 
 Future supplies are also associated with hydrocarbon development 
 projects where the development is driven by the demand for natural 
 gas. 
Demand for helium has been growing at a rate of between 1.5 to 3 
 per cent per annum over the last decade and is a vital component 
 of many modern technologies. As a result of its unique properties 
 as a super fluid, it plays a vital role in devices which use super 
 conducting magnets; as in MRI machines. As an inert gas helium also 
 plays a vital role in the production of many critical electronic 
 components such as disk drives and fibre optics, and is additionally 
 used for industrial testing, purging and leak detection. Helium, 
 as a lifting gas in hybrid air vehicles (and other forms of airship), 
 has also begun to have increased significance. 
 
However, the US government has been selling its strategic reserve 
 and will close the facility for international sales no later than 
 September 2021, after which there is projected to be a significant 
 shortage of helium available on world markets. 
 
Helium One holds one of the only known high-volume, standalone helium 
 resource projects which is not reliant on associated hydrocarbon 
 development. If successful it could provide much needed stability 
 to global helium supply and if commercial volumes are discovered, 
 could be developed as a major swing producer to global markets. 
 
The Helium One Tanzania projects have excellent supply economics 
 and, once liquefied close to production well sites, the helium could 
 be transported to world markets via the deep-water port at Dar es 
 Salaam. Given the competitive demand for crude helium on world markets 
 Helium One could sell helium at the wellhead through an off-take 
 agreement with a large industrial gas company who would liquefy and 
 transport the helium to market. During the 2018 auction of crude 
 helium by the Bureau of Land Management ("BLM") in the USA the average 
 price set for crude helium was US$280 per thousand cubic feet with 
 spot prices reported at levels significantly higher than that level. 
 
Investment Case 
 
Scirocco believes that its participation in Helium One continues 
 to provide exposure to attractive upside valuation in the event of 
 a successful test of in place resources through appraisal drilling. 
 Key positives supporting this: 
 
 
      *    In situ Helium seeps at surface with Helium 
           concentrations measured in the range of 8-10.2% which, 
           if proven through appraisal drilling, would represent 
           a world class source of Helium; 
 
      *    A number of mapped structures potentially capable of 
           holding c. 138 bcf Helium in aggregate as indicated 
           by an independent report prepared by SRK Consulting; 
 
      *    An experienced management team, recently augmented, 
           with a proven track record of developing value in the 
           natural resources sector; 
 
 
 
                                                         *    Robust supply/demand dynamics in the global helium 
                                                              market which support highly attractive valuation of 
                                                              any resource, if proven; and 
 
                                                         *    Engaged community of offtake parties in the specialty 
                                                              industrial gas market willing to fund the 
                                                              installation and operation of the necessary 
                                                              liquefaction and purification facilities. 
 
Other investments - non-core 
 
A.                                                   Ausable Reef gas assets located in Ontario, Canada (28.56% 
                                                     interest) 
 
On 22 March 2019, Scirocco announced that as part of the portfolio 
 rationalisation, the Company had signed Heads of Terms ("HoT") with 
 Levant Exploration and Production Corp. ("Levant") for the divestment 
 of Scirocco's 28.56% in the Ausable Reef gas assets (the "Assets") 
 to Levant. 
 
In July 2020, the Company announced that it had entered into a conditional 
 asset purchase agreement ("Agreement") with Reef Resources Limited 
 ("Reef") and Levant for the sale of its 28.56% interest in the Assets 
 to Levant. 
 
Unfortunately, Levant was unable to satisfy certain of the conditions 
 to completion contained in the Agreement and consequently Reef and 
 Scirocco elected to terminate the Agreement in March 2021. 
 
Following the termination of the Agreement, Scirocco entered into 
 a quit claim agreement with Reef pursuant to which Scirocco has transferred, 
 for nominal consideration, its 28.56% interest in the Assets to Reef 
 and Reef has assumed the associated liabilities, historic and future, 
 in each case with effect from 1 December 2020. 
 
The Company fully impaired the value of its holding in the Assets 
 to zero in 2017 and incurred only nominal costs related to its holding 
 in the Assets in 2020. 
 
Mr Tom Reynolds 
Director 
Date: 14 June 2021 
 
 
 
Glossary and Notes 
 
2D seismic       seismic data collected using the two-dimensional common depth 
                  point method 
3D               three-dimensional 
AIM              London Stock Exchange Alternative Investment Market 
API              American Petroleum Institute 
barrel or        45 US gallons 
 bbl 
bbls             barrels of oil 
bcf              billion cubic feet 
best estimate    the most likely estimate of a parameter based on all available 
 or P50           data, also often termed the P50 (or the value of a probability 
                  distribution of outcomes ta the 50% confidence level) 
billion          10 to the power of 9 
bopd             barrels of oil per day 
CNG              condensed natural gas 
contingent       those quantities of petroleum estimated, at a given date, 
 resources        to be potentially recoverable from known accumulations, but 
                  the associated projects are not yet considered mature enough 
                  for commercial development due to one or more contingencies 
CPR              Competent Persons Report 
discovery        a petroleum accumulation for which one or several exploratory 
                  wells have been established through testing, sampling and/or 
                  logging the existence of a significant quantity of potentially 
                  moveable hydrocarbons 
electric         tools used within the wellbore to measure the rock and fluid 
 logs             properties of the surrounding formations 
GIIP             gas initally in place 
GSA              gas sales agreement 
HH-1             Horse Hill-1 well 
HHDL             Horse Hill Developments Limited 
KN-1             Kiliwani North-1 well 
KNDL             Kiliwani North Development Licence 
m                thousand (ten to the power 3) 
mm               million (ten to the power 6) 
mmbbls           milion barrels of oil 
mmscf            million standard cubic feet of gas 
mmscfd           millon standard cubic feet of gas per day 
OGA              UK Oil and Gas Authority (formally the Department of Energy 
                  and Climate Change 
oil in place     stock tank oil initally in place, those quantities of oil 
 or STOIIP        that are estimated to be known reservoirs prior to production 
                  commencing 
pay              reservoir in portion of a reservoir formation that contains 
                  economically producible hydrocarbons. The overall interval 
                  in which pay sections occur is the gross pay; the portion 
                  of the gross pay that meets specific criteria such as minimum 
                  porosity, perme 
PEDL             Petroleum Exploration and Development Licence 
permeability     the capability of a porous rock or sediment to permit the 
                  flow of fluids through the pore space 
petrophysics     the study of the physical and chemical properties of rock 
                  formations and their interactions with fluids 
play             a set of known or postulated oil or gas accumulations sharing 
                  similarr geologic properties 
porosity         the percentage of void space in a rock formation 
prospective      those quantities of petroleum which are estimated, at a given 
 resources        date, to be potentially recovered from undiscovered accumulations 
proven reserves  those quantities of petroleum, which, by analysis of geoscience 
                  and engineering data, can be estimated with reasonable certainty 
                  to be commercially recoverable (1P), from a given data forward, 
                  from known reservoirs and under defined economic conditions, 
probable         those additional reserves which analysis of geoscience and 
 reserves         engineering data indicate are less likely to be recovered 
                  than Proven Reserves but more certain to be recovered than 
                  Possible Reserves. It is equally likely that actual remaining 
                  quantities recover 
 
 
possible        those additional reserves which analysis of geoscience and 
 reserves        engineering data suggest are less likely to be recoverable 
                 than Probable Reserves. The total quantities ultimately recovered 
                 from the projkect have a low probability to exceed the sum 
                 of Proved reserves 
PSA             petroleum sharing agreement 
PRMS            Petroleum Resources Management system 
 
reserves        those quantities of petroleum anticipated to be commercially 
                 recovered by application of development projects to known 
                 accumulations from a given date forward under defined conditions 
reservoir       a subsurface rock formation containing an individual natural 
                 accumulation of moveable petroleum 
SPE             Society of Petroleum Engineers 
tcf             trillion cubic feet 
trillion        10 to the power of 12 
unconventional  widely accepted to mean those hydrocarbon reservoirs that 
 reservoir       are tight; that is have low permeability 
 

DIRECTORS' REPORT

FOR THE YEARED 31 DECEMBER 2020

 
The Directors are pleased to present this year's annual report together 
 with the financial statements for the year ended 31 December 2021. 
 The name of the Company was changed from Solo Oil Plc to Scirocco 
 Energy Plc on 25 September 2020. 
 
A statement on Corporate Governance is set out on pages 18 to 31. 
 
Principal Activities 
        The principal activity, subject to Shareholder approval being granted 
         for the proposed investing policy change, is to acquire a diverse 
         portfolio of direct and indirect interests in attractive cash generative 
         and development assets within the European sustainable energy market. 
         The Board is seeking to invest in assets which meet the following 
         criteria: 
          *    cash generative, with the potential to re-invest 
               operational cash flow in further growth; 
 
 
          *    situated within the broad energy space, a market 
               which the Board knows well; 
 
 
          *    primary targets within one of three asset 
               classifications: 
 
 
         - Energy. Assets which are involved in the direct production of 
         low carbon energy 
         - Circular. Assets which recover valuable components from waste 
         streams 
         - Vector. Assets involved with the transmission, storage and delivery 
         of low carbon energy 
          *    assets which can attract the necessary investment 
               capital, taking appropriate account of growing 
               investor sentiment towards ESG and SRI indicators; 
               and 
 
 
          *    assets which deliver stable returns, with lower 
               exposure to global commodity prices. 
 
 
         The Company may invest by way of outright acquisition, including 
         the intellectual property, of a relevant business, partnerships 
         or joint venture arrangements, or by the acquisition of assets. 
         Such investments, for the most part, will be focused on the Company 
         acquiring part of a company or project (which in the case of an 
         investment in a company may be private or listed on a stock exchange, 
         and which may be pre-revenue), and such investments may constitute 
         a minority stake in the company or project in question. The Company's 
         investments may take the form of equity, joint venture debt, convertible 
         instruments, licence rights, or other financial instruments as the 
         Directors deem appropriate. 
         Scirocco intends to be a long-term investor and the Directors will 
         place no minimum or maximum limit on the length of time that any 
         investment may be held. 
         There is no limit on the number of projects into which the Company 
         may invest, nor the proportion of the Company's gross assets that 
         any investment may represent at any time. 
Business Review and Future Developments 
A detailed review of the Company's business is set out in the Chairman's 
 statement incorporating the strategic report (pages 1-12). 
 Details of expected future developments for the Company are set 
 out in the Chairman's statement incorporating the strategic report 
 (pages 1-12). 
 
Results and Dividends 
Loss on ordinary activities after taxation amounted to GBP4.118 
 million (2019: GBP2.561 million). The Directors do not recommend 
 payment of a dividend (2019: nil). 
 
Key Performance Indicators 
Given the nature of the business and that the Company had adopted 
 a new investing policy and is in the early stages of developing 
 new operations, the directors are of the opinion that analysis using 
 KPIs is not appropriate for an understanding of the development, 
 performance or position of our businesses at this time. The Board 
 will review this position during 2022 and will look to introduce 
 a KPI indicators when the Company is in the position to do so. 
 
 
Directors 
The directors who held office during the year and up to the date 
 of signature of the financial statements were as follows: 
 
                                              Date of appointment 
Executive Directors 
Jonathan Fitzpatrick 
Alastair Ferguson 
Thomas Reynolds 
 
Non-Executive Directors 
Donald Nicolson 
Muir Miller                                   18 February 2021 
 
 
Directors' Remuneration 
The Company remunerates the Directors at a level commensurate with 
 the size of the Company and the experience of its Directors. The 
 Remuneration Committee has reviewed the Directors' remuneration 
 and believes it upholds the objectives of the Company with regard 
 to these issues. Details of the Director emoluments and payments 
 made for professional services rendered are set out in Note 7 to 
 the financial statements. 
Directors' Interests 
The Directors' interests in the share capital of the Company at 
 31 December 2020 were: 
 
                                    At 31 December 2020                At 31 December 2019 
Director                      Shares                Options          Shares          Options 
Jonathan Fitzpatrick         26,203,189  *             18,461,483   28,708,641  *    2,500,000 
Alastair Ferguson            24,325,395                16,323,575   16,825,397               - 
Tom Reynolds                  2,464,108  **            18,843,342    2,464,108  **           - 
Donald Nicolson                       -                10,419,772            -               - 
Muir Miller ***                       -                         -            -               - 
* includes indirect interest of 916,624 shares held by Carolyn Fitzpatrick 
** includes indirect interest of 286,738 shares held by Paula Reynolds 
*** Mr Muir Miller joined the Board on 18 February 2021 
 
No Director had, during the year or at the end of the year, other 
 than disclosed above, a material interest in any contract in relation 
 to the Group's activities except in respect of service agreements. 
 Gneiss Energy, which is wholly owned by Mr Fitzpatrick and his wife, 
 maintains a service contract for the provision of operational and 
 technical management services, guidance and support on public relations 
 and market engagement strategy, flexible work space and meeting 
 rooms, telephones, company secretary support and corporate finance 
 advisory services with the Company, the details of which are disclosed 
 in Note 24 to the financial statements. 
 
Subject to the conditions set out in the Companies Act 2006, the 
 Company has arranged appropriate Directors' and Officers' insurance 
 to indemnify the Directors against liability in respect of proceedings 
 brought by third parties. Such provisions remain in force at the 
 date of this report. 
 
 
Substantial Shareholdings 
At 8 June 2021 the following had notified the Company of disclosable 
 interests in 3% or more of the nominal value of the Company's shares: 
 
Shareholder                                        Number of shares     % of Issued Capital 
Interactive Investor Services Nominees 
 Limited                                           83,339,933                        10.98% 
Forest Nominees Limited                            68,534,128                         9.03% 
Interactive Investor Services Nominees 
 Limited                                           48,053,575                         6.33% 
Hargreaves Lansdown (Nominees) Limited             45,758,207                         6.03% 
Barclays Direct Investing Nominees 
 Limited                                           42,905,615                         5.65% 
HSDL Nominees Limited                              37,327,678                         4.92% 
Hargreaves Lansdown (Nominees) Limited             34,626,161                         4.56% 
Hargreaves Lansdown (Nominees) Limited             33,728,233                         4.45% 
Securities Services Nominees Limited               24,598,242                         3.24% 
The Bank of New York (Nominees) Limited            24,525,123                         3.23% 
Pershing Nominees Limited                          24,325,395                         3.21% 
HSBC Client Holdings Nominee (UK) Limited          24,111,619                         3.18% 
 
Environmental Responsibility 
The Company is aware of the potential impact that its investee companies 
 may have on the environment. The Company ensures that it, and its 
 investee companies at a minimum comply with the local regulatory 
 requirements and the revised Equator Principles with regard to the 
 environment. 
 
Supplier Payment Policy 
The Company's policy is to agree terms and conditions with suppliers 
 in advance; payment is then made in accordance with the agreement 
 provided the supplier has met the terms and conditions. Suppliers 
 are typically paid within 30 days of issue of invoice. 
 
Employment Policies 
The Company will be committed to promoting policies which ensure 
 that high calibre employees are attracted, retained and motivated, 
 to ensure the ongoing success for the business. Employees and those 
 who seek to work within the Company are treated equally regardless 
 of sex, marital status, creed, colour, race or ethnic origin. 
Political Contributions and Charitable Donations 
During the period the Company did not make any political contributions 
 or charitable donations. 
 Financial Instruments 
 See Note 23 to the financial statements. 
 Related Party Transactions 
 See Note 24 to the financial statements. 
 
Post Reporting Date Events 
At the date these financial statements were approved, being 14 June 
 2021, the Directors were not aware of any significant post balance 
 sheet events other than those set out in the notes to the financial 
 statements. 
 
Annual General Meeting ("AGM") 
This report and nancial statements will be presented to shareholders 
 for their approval at the AGM. The Notice of the AGM will be distributed 
 to shareholders together with the Annual Report. 
 
 
Health and Safety 
The Company's aim will always be to achieve and maintain the highest 
 standard of workplace safety. In order to achieve this objective 
 the Company sets demanding standards for workplace safety and will 
 provide comprehensive training and support to employees. 
 
Auditor 
PKF Littlejohn LLP were reappointed as auditors of the Company and 
 in accordance with Section 285 of the Companies Act 2006, a resolution 
 preposing they be reappointed will be proposed at the next Annual 
 General Meeting. 
 
Going Concern 
The Directors note the losses that the Company has made for the 
 year ended 31 December 2020. The Directors have prepared cash flow 
 forecasts for the period ending 31 December 2022 which take account 
 of the current cost and operational structure of the Company. The 
 cost structure of the Company comprises a proportion of discretionary 
 spend and therefore in the event that cash flows become constrained, 
 costs can be reduced to enable the Company to operate within its 
 available funding. These forecasts demonstrate that the Company 
 has sufficient cash funds available, on the assumption that further 
 funds can be sourced as and when needed, to allow it to continue 
 in business for a period of at least twelve months from the date 
 of approval of these financial statements. 
 Accordingly, the financial statements have been prepared on a going 
 concern basis. Comments on going concern are included in the Operations 
 report and note 1. Although the Ruvuma asset is held for sale, no 
 guarantee can be made that a sale occurs. The critical assumption 
 in the going concern determination is that the Ruvuma PSA and the 
 costs associated with the development of the Ntoyra natural gas 
 discovery are met by the Company for its 25% interest. It is assumed 
 that - if required - the Company would be able to access additional 
 funding. If additional funding was not available there is a risk 
 that commitments could not be fulfilled, and assets would be relinquished. 
Statement of Disclosure to the Auditor 
      In the case of each person who was a Director at the time this report 
       was approved: 
        *    So far as that Director was aware there was no 
             relevant available information of which the Company's 
             auditor was unaware; and 
 
 
        *    That Director had taken all necessary steps to make 
             themselves aware of any relevant audit information, 
             and to establish that the Company's auditors were 
             aware of that information. 
 
Electronic Communication 
The maintenance and integrity of the Company's website is the responsibility 
 of the Directors: the work carried out by the auditors does not 
 involve consideration of these matters and, accordingly, the auditors 
 accept no responsibility for any changes that may have occurred 
 to the financial statements since they were initially presented 
 on the website. 
 
The Company's website is maintained in accordance with AIM Rule 
 26. 
 
Legislation in the United Kingdom governing the preparation and 
 dissemination of the financial statements may differ from legislation 
 in other jurisdictions. 
 
On behalf of the board 
 
Mr Tom Reynolds 
Director 
14 June 2021 
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT 
 FOR THE YEARED 31 DECEMBER 2020 
        The Directors are responsible for preparing the financial statements 
         in accordance with applicable law and regulations. Company law requires 
         the Directors to prepare financial statements for each financial 
         year. Under that law the Directors are required to prepare the Financial 
         Statements in accordance with International Financial Reporting 
         Standards ("IFRSs") as adopted by the European Union. 
         Under company law the Directors must not approve the financial statements 
         unless they are satisfied that they give a true and fair view of 
         the state of affairs of the Company as at the end of the financial 
         year and of the profit or loss of the Company for that period. In 
         preparing these financial statements, the Directors are required 
         to: 
          *    select suitable accounting policies and then apply 
               them consistently; 
 
 
          *    make judgments and accounting estimates that are 
               reasonable and prudent; 
 
 
          *    state whether the applicable IFRSs as adopted by the 
               European Union have been followed subject to any 
               material departures disclosed and explained in the 
               financial statements; and 
 
 
          *    prepare the financial statements on a going concern 
               basis unless it is inappropriate to presume that the 
               Company will continue in business. 
 
 
         The Directors are responsible for keeping adequate accounting records 
         that are sufficient to show and explain the Company's transactions 
         and disclose with reasonable accuracy at any time the financial 
         position of the Company and enable them to ensure that the financial 
         statements comply with the Companies Act 2006. They are also responsible 
         for safeguarding the assets of the Company and hence for taking 
         reasonable steps for the prevention and detection of fraud and other 
         irregularities. 
         The Directors are responsible for the maintenance and integrity 
         of the corporate and financial information included on the Company's 
         website. Legislation in the United Kingdom governing the preparation 
         and dissemination of the financial statements may differ from legislation 
         in other jurisdictions. 
         The Company is compliant with AIM Rule 26 regarding the Company's 
         website. 
 
 
CORPORATE GOVERNANCE STATEMENT 
 FOR THE YEARED 31 DECEMBER 2020 
        As Chairman of Scirocco Energy plc, it is my responsibility to ensure 
         that the Board is performing its role effectively and has the capacity 
         and ability, structure and support to enable it to continue to do 
         so. 
         How we govern the Company 
         Information on how the Company organises its Corporate Governance 
         is set out below and can also be found on the Company's website www.sciroccoenergy.com 
         and is, in the opinion of the Board, fully in accordance with the 
         revised requirements of AIM Rule 26. 
         From September 2018 onwards, all AIM quoted companies were required 
         to set out details of the recognised corporate governance code that 
         the Board of Directors has decided to adopt and provide reasons for 
         any departures where it does not comply with the code. The Company 
         has elected to adopt the 2018 Quoted Companies Alliance Corporate 
         Governance Code for Small and Mid-Sized Companies (the "QCA Code"). 
         The Company intends to adhere to the recommendations of the QCA Code 
         to the extent it considers them appropriate in light of the Company's 
         size, liquidity and capital resources. 
         The QCA code is constructed around 10 broad principles and a set 
         of disclosures. The QCA has stated what it considers to be appropriate 
         arrangements for growing companies and asks companies to provide 
         an explanation of how they are meeting the principles through the 
         prescribed disclosures. We have considered how we apply each principle 
         to the extent that the Board judges these to be appropriate in the 
         circumstances, and below we provide an explanation of the approach 
         take in relation to each. 
         2020 and 2021 have seen, amongst others, the following governance 
         developments: 
          *    The Chairman, CEO and COO met with major shareholders 
               and hosted a number conference calls with investors; 
 
 
          *    AIM Rules Compliance and Disclosure Committee 
               established; 
 
 
          *    Developed the transition energy strategy through 2020 
               and issued an augmented strategy in Q1 2021; 
 
 
          *    Addition of Muir Miller to the Board in February 
               2021; 
 
 
          *    Establishing an ESG Committee that Muir Miller will 
               Chair in 1H21. 
 
 
         Board of Directors 
         The Board is responsible for the overall governance of the Company. 
         Its responsibilities include setting the strategic direction of the 
         Company, providing leadership to put the strategy into action and 
         to supervise the management of the business. 
         During 2020, Scirocco Energy operated with a four-member Board and 
         the Board was further strengthened in March 2021 when Mr Muir Miller 
         was appointed as an Independent Non-Executive Director. Mr Miller 
         brings with him a wealth of experience in the low carbon sector and 
         will be instrumental in building the company in line with the stated 
         transition energy strategy. As part of a managed transition and maintaining 
         an appropriate number of Directors Mr Jon Fitzpatrick has also stated 
         his intention to stand down from the Board before the next AGM. 
         The Board currently comprises four non-executive Directors ('NEDs') 
         and the CEO. Biographies of the Directors are on pages 23-24. Due 
         to their shareholding in the Company, two of the NEDs are not considered 
         by the Board to be independent. The roles and responsibilities of 
         the Chairman, CEO, Non-Executive Directors and Company Secretary 
         are set out on the website and summarised below. 
         The Board has established the corporate governance values of the 
         Company and has overall responsibility for setting the Company's 
         strategic aims, de ning the business plan and strategy and managing 
         the nancial and operational resources of the Company. Overall supervision, 
         acquisition, divestment and other strategic decisions are considered 
         and determined by the Board. The Executive team is supported by the 
         wider team and external service providers as required. The Directors 
         are of the opinion that the Board comprises a suitable balance and 
         that the recommendations of the QCA Code have been implemented to 
         an appropriate level. The Board, through the Chairman in particular, 
         maintains regular contact with its advisers and public relations 
         consultants in order to ensure that the Board develops an understanding 
         of the views of major shareholders about the Company. 
 
 
Terms of Reference 
 The Terms of Reference of all Board Committees are available on the 
 website. 
 Record of meetings 
 The Board meets regularly throughout the year. For the period ending 
 31 December 2020 the Board met 17 times (2019: 14, 2018: 10, 2017: 
 4) in relation to normal operational matters and on an ad hoc basis 
 as required to transact additional business to support the Company's 
 activities. 
 The Board is responsible for formulating, reviewing and approving 
 the Company's strategy, nancial activities and operating performance. 
 Day-to-day management is devolved to the Executive Director and management 
 who are charged with consulting the Board on all signi cant nancial 
 and operational matters. All Directors have access to the advice 
 of the Company's solicitors and the Company Secretary necessary information 
 is supplied to the Directors on a timely basis to enable them to 
 discharge their duties e ectively and all Directors have access to 
 independent professional advice, at the Company's expense, as and 
 when required. 
 Internal controls 
 The Directors acknowledge their responsibility for the Company's 
 systems of internal controls and for reviewing their effectiveness. 
 These internal controls are designed to safeguard the assets of the 
 Company and to ensure the reliability of nancial information for 
 both internal use and external publication. Whilst they are aware 
 that no system can provide absolute assurance against material misstatement 
 or loss, in light of increased activity and further development of 
 the Company, continuing reviews of internal controls will be undertaken 
 to ensure that they are adequate and e ective. 
 Compliance 
 The Company has also reviewed the appropriate policies and procedures 
 to ensure compliance with the UK Bribery Act. The Company continues 
 actively to promote good practice throughout the Company and has 
 initiated a rolling programme of anti-bribery and corruption training 
 for all relevant employees and consultants. 
 
 
QCA Principles 
 Review of each of the QCA Principles: 
 
Principle 1: 
Establish a strategy         Scirocco Energy plc is an investment company 
 and business model which     whose strategy is to acquire a diverse portfolio 
 promote long-term value      of direct and indirect interests in attractive 
 for shareholders             cash generative and development assets within 
                              the European sustainable energy market. In 
                              2020, the Board announced its plan to review 
                              and augment its strategy to invest in a broader 
                              European energy market strategy targeting 
                              attractive growth opportunities predominantly 
                              within the European gas and energy transition 
                              market whilst maximising value for shareholders 
                              from the Company's existing portfolio. This 
                              has been further developed as announced on 
                              18 February 2021 and the Board is seeking 
                              opportunities which meet the following criteria: 
 
                                 *    cash generative, with the potential to re-invest 
                                      operational cash flow in further growth; 
 
                                 *    situated within the broad energy space, a market 
                                      which the Board knows well; 
 
                                 *    primary targets within one of three asset 
                                      classifications: 
                                     - Energy - assets which are involved in 
                                      the direct production of low carbon energy. 
                                     - Circular - Assets which recover valuable 
                                      components from waste streams. 
                                     - Vector - Assets involved with the transmission, 
                                      storage and delivery of low carbon energy. 
 
                                 *    assets which can attract the necessary investment 
                                      capital, taking appropriate account of growing 
                                      investor sentiment towards ESG and SRI indicators; 
                                      and 
 
                                 *    assets which deliver stable returns, with lower 
                                      exposure to global commodity prices. 
 
Principle 2: 
Seek to understand and       The Board is committed to maintaining good 
 meet shareholder needs       communication and having constructive dialogue 
 and expectations             with all its shareholders. The Company has 
                              close ongoing relationships with its private 
                              shareholders. Institutional shareholders 
                              and analysts have the opportunity to discuss 
                              issues and provide feedback at meetings with 
                              the Company. In addition, all shareholders 
                              are encouraged to attend, where possible, 
                              the Company's Annual General Meeting. Investors 
                              also have access to current information on 
                              the Company though its website, www.sciroccoenergy.com, 
                              and via Tom Reynolds (CEO) and Doug Rycroft 
                              (COO), who are available to answer investor 
                              relations enquiries. The Company in conjunction 
                              with its investor relations advisor has developed 
                              a Communications Strategy to formalise how 
                              shareholder communications are managed. 
 
 
Principle 3: 
Take into account wider     The Board recognises that the long-term success 
 stakeholder and social      of the Company is reliant upon its ability 
 responsibilities and        and willingness to engage with the broader 
 their implications for      range of stakeholders to positively influence 
 long-term success           the development of the Company and the communities 
                             we interact with operationally and corporately. 
                             The Board has put in place a range of processes 
                             and systems to ensure that there is close 
                             oversight and contact with its key resources 
                             and relationships. 
 
                            Given that Scirocco Energy plc is a small 
                             company there is close interaction between 
                             the Board and Executive Management to help 
                             ensure successful two-way communication with 
                             agreement on goals, targets and aspirations 
                             for the Company. Scirocco Energy plc through 
                             its advisers and JV partners has developed 
                             close ongoing relationships with a broad 
                             range of its stakeholders and provides them 
                             with the opportunity to raise issues and 
                             provide feedback to the Company. 
 
Principle 4: 
Embed effective risk        It is critical that Scirocco Energy plc has 
 management, considering     a robust view of its risk profile and appetite 
 both opportunities and      so as to ensure both its existing and new 
 threats, throughout         investments are managed within acceptable 
 the organization.           margins of risk. The processes are in place 
                             to understand the Company's key drivers for 
                             success and to be able to assess the associated 
                             risks in delivering on its strategy successfully. 
                             Given the specialised nature of investing 
                             in, and being involved in, the operations 
                             of specialised assets in the energy sector, 
                             it is imperative that the Board considers 
                             at all times that it has the appropriate 
                             risk management system including both people 
                             and processes to successfully mitigate these 
                             risks. 
 
                            The Board encourages a dyamic and constructuve 
                             dialogue between Executive Management, its 
                             advisers and the Board including the willingness 
                             to challenge assumptions and the consideration 
                             of emerging and interrelated risks for its 
                             investment portfolio. 
 
                            In addition to its other roles and responsibilities, 
                             the Audit Committee is responsible to the 
                             Board for ensuring that procedures are in 
                             place and are being implemented effectively 
                             to identify, evaluate and manage the significant 
                             risks faced by the Company. The risk assessment 
                             matrix below sets out those risks, and identifies 
                             the controls that are currently in place. 
                             This matrix is updated as changes arise in 
                             the nature of risks or the controls that 
                             are implemented to mitigate them. The Audit 
                             Committee reviews the risk matrix and the 
                             effectiveness of scenario testing on a regular 
                             basis. The Board has a comprehensive review 
                             of the risks every six months and works with 
                             Executive Management to understand and agree 
                             on the types and format of risk information 
                             that the Board requires. In addition, the 
                             Board periodically assesses the risk oversight 
                             processes and ensure suitability with/and 
                             alongside its current policies. 
 
                            See risk management section which begins 
                             on page 27. 
 
Principle 5: 
Maintain the Board as       The Board is currently comprised of five 
 a well-functioning,         Directors; Alastair Ferguson, Non-Executive 
 balanced team led by        Chairman; Jon Fitzpatrick, Non-Executive 
 a chair                     Director; Donald Nicolson, Independent Non-Executive 
                             Director, Muir Miller Independent Non-Executive 
                             Director and Tom Reynolds, CEO. Biographical 
                             details of the current Directors are set 
                             out within Principle Six below. 
 
 
                             Executive and Non-Executive Directors are 
                              subject to re-election at intervals of no 
                              more than three years. The letters of appointment 
                              of all Directors are available for inspection 
                              at the Company's registered office during 
                              normal business hours. The Executive Director 
                              is considered to be a full-time employee 
                              whilst the Non-Executive Directors are considered 
                              to be part time but are expected to provide 
                              as much time to the Company as is required. 
                              The Board elects a Chairman to chair every 
                              meeting. 
 
                             The Board notes that the QCA recommends that 
                              the Chairman's responsibilities should be 
                              devolved from the day-to-day running of the 
                              business in order to ensure independence. 
                              Following the resignation of the former Managing 
                              Director in February 2019, Alastair Ferguson 
                              temporarily assumed the role of Executive 
                              Chairman in order to maintain a balance between 
                              executive and non-executive roles on the 
                              Board and to ensure the Company has sufficient 
                              executive oversight. The appointment of Tom 
                              Reynolds as CEO in October 2019 enabled Alastair 
                              Ferguson to step back into the role of Non-Executive 
                              Chairman. 
 
                             The Board meets at least four times per calendar 
                              year. It has established an Audit Committee, 
                              a Remuneration Committee and an AIM Rules 
                              Compliance and Disclosures Committee, which 
                              are set out in more detail below. At this 
                              stage, the Board does not consider it necessary 
                              to establish a separate Nominations Committee. 
                              It shall continue to monitor the need to 
                              match resources to its operational performance 
                              and costs and the matter will be kept under 
                              review going forward. 
 
                             Attendance at Board and Committee Meetings 
                              The Company reports annually on the number 
                              of Board and Committee meetings held during 
                              the year and the attendance record of individual 
                              Directors. 
 
                             To date in the current financial year the 
                              Directors have a good record of attendance 
                              at such meetings. In order to be efficient, 
                              the Directors meet formally and informally 
                              both in person and by telephone. To date 
                              there have been at least quarterly meetings 
                              of the Board, and the volume and frequency 
                              of such meetings is expected to continue 
                              at this rate. 
 
Principle 6: 
Ensure that between          The Board currently consists of five Directors. 
 them the Directors have      The Company believes that the current balance 
 the necessary up-to-date     of skills and experience in the Board as 
 experience, skills and       a whole, reflects a very broad range of commercial 
 capabilities                 and professional skills across geographies 
                              and industries and all of the Directors have 
                              experience in public markets. 
 
                             The Board recognises that it currently has 
                              a limited diversity and this will form a 
                              part of any future recruitment consideration 
                              if the Board concludes that replacement or 
                              additional directors are required. 
 
 
 
The Board shall review annually the appropriateness 
 and opportunity for continuing professional 
 development whether formal or informal. 
 
Alastair Ferguson (Non-Executive Chairman) 
Mr Ferguson is a Chartered Engineer and has 
 over 40 years' experience in the oil and 
 gas industry, the last seven of which have 
 been spent in various Chairman and non-executive 
 director positions. Mr Ferguson has considerable 
 commercial management experience and has 
 specific expertise in business development 
 and managing projects in complex political 
 environments. 
 
Jon Fitzpatrick (Non-Executive Director) 
Mr Fitzpatrick is a qualified corporate lawyer, 
 petroleum economist, investment banker and 
 energy sector adviser. He began his career 
 in 1994 as a research associate at the Centre 
 for Energy, Petroleum, Mineral Law and Policy 
 at the University of Dundee. In 2016, Jon 
 founded his own advisory practice, Gneiss 
 Energy Limited, operating exclusively within 
 the energy and resources sectors. 
 
Scirocco Energy plc and Gneiss Energy Limited 
 have an ongoing advisory relationship. 
 
Donald Nicolson (Independent Non-Executive 
 Director) 
Mr Nicolson is a senior business leader with 
 more than 35 years experience in oil, gas, 
 mining and natural stone sectors. During 
 this time, he has held multiple board roles, 
 executive & non-executive, in both publicly-listed 
 and private companies. Between 2016 and 2019, 
 Mr Nicolson held the role of Chairman and 
 interim CEO for mining and quarrying firm 
 Levantina Natural Stone Co., having previously 
 held Vice Chairman, non-Executive Director 
 and Advisor roles. Mr Nicolson spent more 
 than 26 years with BP Exploration, during 
 which he held roles including Director of 
 BP North Sea, Chief of Staff to BP CEO (E&P), 
 Vice President for BP Alaska and Vice President 
 for BP Canada. Mr Nicolson is skilled in 
 strategy development, asset management, business 
 planning, investment decision making, and 
 business restructuring and has significant 
 fund-raising experience, including main market 
 IPO and debt refinancing. 
 
Muir Miller (Independent Non-Executive Director) 
Mr Miller is a Chartered Engineer and Member 
 of the Institution of Mechanical Engineers 
 with over two decades of senior executive 
 experience, with particular focus on the 
 renewable energy sector. Most recently, Mr 
 Miller was Managing Director of Peel Energy, 
 part of the privately owned, diverse and 
 entrepreneurial Peel Group, a leading infrastructure, 
 transport and real estate investor in the 
 UK, with collective investments owned and 
 under management of more than GBP5 billion. 
 Prior to joining Peel Energy, he was Business 
 Development Manager at Energy Power Resources, 
 with an installed capacity of 113MW of dedicated 
 biomass assets, 70MW of landfill gas assets, 
 and 100 MW of wind assets in France, UK and 
 Sweden. Between 2005 and 2007, Mr Miller 
 was CEO of Novera Macquarie Renewable Energy, 
 a joint venture with annual turnover of GBP32 
 million and one of the largest independent 
 renewable energy operators in the UK with 
 a total installed generating capacity of 
 117.5MW across 53 geographically diverse 
 sites. 
 
 
                               Tom Reynolds (CEO) 
                               Mr Reynolds is a Chartered Engineer with 
                                over 25 years' experience in the energy sector, 
                                including a range of technical and commercial 
                                roles with BP plc, Total SA and British Nuclear 
                                Fuels plc. He has also held management positions 
                                at private equity investment and advisory 
                                firms, including 3i plc, and specialises 
                                in strategic planning, investment management 
                                and cross-border M&A transaction execution 
                                in the oil, gas, energy and infrastructure 
                                sectors. 
 
Principle 7: 
Evaluate Board performance     Internal evaluation of the Board, the Committees 
 base on clear and relevant     and individual Directors is to be undertaken 
 objectives, seeking            on an annual basis in the form of peer appraisal 
 continuous improvement.        and discussions to determine their effectiveness 
                                and performance as well as testing the Directors' 
                                continued independence. This will be undertaken 
                                in conjunction with external advisers as 
                                appropriate. 
 
                               The results and recommendations that come 
                                out of the appraisals for the directors shall 
                                identify the key corporate and financial 
                                targets that are relevant to each Director 
                                and their personal targets in terms of career 
                                development and training. Progress against 
                                previous targets shall also be assessed where 
                                relevant. 
 
Principle 8: 
Promote a corporate            The Board is aware that the tone and culture 
 culture that is based          set by the Board will greatly impact all 
 on ethical values and          aspects of the Company as a whole and the 
 behaviours                     way that partners, contractors and advisors 
                                behave. The corporate governance arrangements 
                                that the Board has adopted are designed to 
                                ensure that the Company delivers long term 
                                value to its shareholders and that shareholders 
                                have the opportunity to express their views 
                                and expectations for the Company in a manner 
                                that encourages open dialogue with the Board. 
 
                               A large part of the Company's activities 
                                is centred upon what needs to be an open 
                                and respectful dialogue with partners, clients 
                                and other stakeholders. Therefore, the importance 
                                of sound ethical values and behaviours is 
                                crucial to the ability of the Company to 
                                successfully achieve its corporate objectives. 
                                The Board places great import on this aspect 
                                of corporate life and seeks to ensure that 
                                this flows through all that the Company does. 
 
                               The directors consider that at present the 
                                Company has an open culture facilitating 
                                comprehensive dialogue and feedback and enabling 
                                positive and constructive challenge. The 
                                Company has adopted a code for Directors' 
                                and employees' dealings in securities which 
                                is appropriate for a company whose securities 
                                are traded on AIM and is in accordance with 
                                the requirements of the Market Abuse Regulation 
                                which came into effect in 2016. 
 
 
Principle 9: 
Maintain governance           Ultimate authority for all aspects of the 
 structures and process        Company's activities rests with the Board, 
 that are fit for purpose      the respective responsibilities of the Chairman 
 and support good decision     and Executive Director arising as a consequence 
 making by the Board           of delegation by the Board. The Board has 
                               adopted appropriate delegations of authority 
                               which set out matters which are reserved 
                               to the Board. The Chairman is responsible 
                               for the effectiveness of the Board, while 
                               management of the Company's business and 
                               primary contact with shareholders has been 
                               delegated by the Board to the Executive Director. 
 
                              Audit Committee 
                              The Audit Committee is comprised of Donald 
                               Nicolson (Chairman) and Alastair Ferguson. 
                               This committee has primary responsibility 
                               for monitoring the quality of internal controls 
                               and ensuring that the financial performance 
                               of the Company is properly measured and reported. 
                               It receives reports from the Executive Management 
                               and auditors relating to the interim and 
                               annual accounts and the accounting and internal 
                               control systems in use throughout the Company. 
                               The Audit Committee shall meet not less than 
                               twice in each financial year and it has unrestricted 
                               access to the Company's auditors. 
 
                              Remuneration Committee 
                              The Remuneration Committee is comprised of 
                               Alastair Ferguson (Chairman), Jon Fitzpatrick 
                               and Donald Nicolson. The Remuneration Committee 
                               reviews the performance of the executive 
                               directors and employees and makes recommendations 
                               to the Board on matters relating to their 
                               remuneration and terms of employment. The 
                               Remuneration Committee also considers and 
                               approves the granting of share options pursuant 
                               to the share option plan and the award of 
                               shares in lieu of bonuses. 
 
                              AIM Rules Compliance and Disclosures Committee 
                              The AIM Rules Compliance and Disclosure Committee 
                               is responsible for ensuring the Company has 
                               at all times sufficient procedures, resources 
                               and controls in place to enable compliance 
                               with the AIM Rules for Companies and make 
                               accurate disclosures to meet its disclosure 
                               obligations under MAR. The committee is comprised 
                               of Jon Fitzpatrick (Chairman), Don Nicolson, 
                               and Tom Reynolds. 
 
                              Non-Executive Directors 
                              The Board has adopted guidelines for the 
                               appointment of Non-Executive Directors which 
                               have been in place and which have been observed 
                               throughout the year. These provide for the 
                               orderly and constructive succession and rotation 
                               of the Chairman and non-executive directors 
                               insofar as both the Chairman and non-executive 
                               directors will be appointed for an initial 
                               term of five years and may, at the Board's 
                               discretion believing it to be in the best 
                               interests of the Company, be appointed for 
                               subsequent terms. 
 
                              In accordance with the Companies Act 2006, 
                               the Board complies with: a duty to act within 
                               their powers; to promote the success of the 
                               Company; to exercise independent judgement; 
                               to exercise reasonable care, skill and diligence; 
                               to avoid conflicts of interest; not to accept 
                               benefits from third parties and to declare 
                               any interest in a proposed transaction or 
                               arrangement. 
 
 
 
                                External Representation 
                                The Company has in the past invested in projects 
                                 and jurisdictions where it believes it has 
                                 a competitive advantage in providing early 
                                 stage capital alongside specialist knowledge 
                                 to realise potential value. In order to ensure 
                                 the Company has full visabilty and appropriate 
                                 controls over the projects it has invested 
                                 in the Company has representative participation 
                                 in the various operating committees and / 
                                 or Boards. The detail of which is outlined 
                                 in the table below; 
 
                                Asset 
                                Ruvuma PSC - Operating Committee 
                                Kiliwani North Development Licence - Operating 
                                 Committee 
 
Principle 10: 
Communicate how the             The Board is committed to maintaining good 
 company is governed             communication and having constructive dialogue 
 and is performing by            with all of its shareholders. The Company 
 maintaining a dialogue          has close ongoing relationships with its 
 with shareholders and           private shareholders. Institutional shareholders 
 other relevant stakeholders     and analysts have the opportunity to discuss 
                                 issues and provide feedback at meetings with 
                                 the Company. In addition, all shareholders 
                                 are encouraged, where possible, to attend 
                                 the Company's Annual General Meeting. As 
                                 part of the Communications Strategy the Board 
                                 has engaged investor relations advisers to 
                                 guide the Company on best practice methods 
                                 of communicating through digital, print and 
                                 verbal mediums. 
 
                                Investors also have access to current information 
                                 on the Company though its website and via 
                                 the Executive Management Team comprising 
                                 of Tom Reynolds (CEO) and Doug Rycroft (COO), 
                                 who are available to answer investor relations 
                                 enquiries. The Company proposes in 2020, 
                                 subject to the necessary formalities, to 
                                 move to electronic communications with shareholders. 
 
                                The Company shall include, when relevant, 
                                 in its annual report, any matters of note 
                                 arising from the three Board committees. 
 
 
 
Risk Management 
 Scirocco's activities are subject to a range of financial risks including 
 commodity prices, liquidity, exchange rates and loss of operational 
 equipment or wells. 
 These risks are managed with the oversight of the Board of Directors 
 and the Audit Committee through ongoing review, considering the operational 
 business and economic circumstance at that time. The primary risk 
 facing the business is that of liquidity. 
 
Activity    Risk                      Impact                       Control(s) 
 
Financial   Liquidity, market         Inability to continue        Robust capital and cost 
             and credit risk           as a going concern           management policies and 
                                                                    procedures 
 
                                      Reduction in asset values 
 
            Inappropriate controls    Incorrect reporting          Appropriate authority 
             and accounting policies   of assets                    and investment levels 
                                                                    as agreed and delegated 
                                                                    by the Board 
 
                                                                   Adherence to Statement 
                                                                    of Accounting Policies 
                                                                    as detailed in financial 
                                                                    statements 
 
                                                                   Audit Committee 
 
            Recoverability of         Reduction in net             Trade debtors relate 
             trade debtors             assets                       to a government entity 
                                                                    with which the Joint 
                                                                    Venture has a valid Gas 
                                                                    Sales Agreement, therefore 
                                                                    the Board remains of 
                                                                    the opinion that the 
                                                                    debt is fully recoverable 
 
Regulatory  Breach of rules           Censure of withdrawl         Strong compliance regime 
 adherence                             of listing authorisation     instilled at the management, 
                                                                    advisory and Board levels 
                                                                    of the Company 
 
                                                                   Company established an 
                                                                    AIM Rules Compliance 
                                                                    and Disclosure Committee 
                                                                    in 2020 
 
Strategic   Damage to reputation      Inability to secure          Effective communication 
                                       new capital or investments   with shareholders coupled 
                                                                    with consistent messaging 
                                                                    to potential investees 
 
                                                                   Robust compliance and 
                                                                    adherence to the Company's 
                                                                    ABC Policy 
 
            Inadequate disaster       Loss of key operational      Secure off-site storage 
             recovery procedures       and financial data           of data 
 
 
Operational     Significant operational        Damage/loss of equipment  Review of operator emergency 
                 event in JVs                   and injury/death          response plans and appropriate 
                                                                          contingency plans 
 
                Significant geopolitical       Loss of operating         Stakeholders engagement 
                 event in one of                ability and/or major      plans to ensure visibility 
                 our operating theatres         project delays            in political operating 
                                                                          environment 
 
Management      Recruitment and                Reduction in operating    Alignment of company's 
                 retention of key               capability                recruitment and retention 
                 staff and advisors                                       objectives to ensure 
                                                                          a motivated workforce 
                                                                          and a safe working environment 
 
                                                                         Balancing salary with 
                                                                          longer term incentive 
                                                                          and retention plans aligning 
                                                                          participants directly 
                                                                          to the shareholder experience 
 
Investment      Discrete investments           Reduction in value        Robust risk management 
                suffer a change                 of investments            process during the selection 
                in circumstance                                           and investment process 
                or other risks manifesting                                including where appropriate 
                during the period                                         third party technical, 
                of ownership                                              financial, legal and 
                                                                          commercial due diligence 
                                                                          activity 
 
Tom Reynolds 
 
Director 
 
 
 
        Audit Committee Report 
         Scirocco's Audit Committee meets at least twice a year and is presently 
         chaired by Donald Nicolson and Alastair Ferguson is the other member 
         of the Committee. 
         Mr Nicolson joined the Board on 11th November 2019 and assumed the 
         role of Audit Committee Chairman. 
         During the course of 2020 and 2021 the Committee has reviewed: 
          *    The statements to be included in the Annual report 
               concerning internal control, risk management and the 
               going concern statement; 
 
 
          *    The carrying values of the producing and intangible 
               assets; 
 
 
          *    The procedures for detecting fraud; 
 
 
          *    The systems and controls for the prevention of 
               bribery; and 
 
 
         The committee has overseen the relationship with the external auditor, 
         including: 
          *    Approved their remuneration for audit and non-audit 
               services; 
 
 
          *    Approved their terms of engagement and the scope of 
               the audit; 
 
 
          *    Satisfied itself that there are no relationships 
               between the auditor and the Company which could 
               adversely affect the auditor's independence and 
               objectivity; 
 
 
          *    Monitored the auditor's processes for maintaining 
               independence, its compliance with relevant UK law, 
               regulation, other professional requirements and the 
               Ethical Standard, including the guidance on the 
               rotation of audit partner and staff; 
 
 
          *    Assessed the qualifications, expertise and resources, 
               and independence of the external auditor and the 
               effectiveness of the external audit process; 
 
 
          *    Evaluated the risks to the quality and effectiveness 
               of the financial reporting process in the light of 
               the external auditor's communications with the 
               committee; 
 
 
          *    Met with the external auditor without management 
               being present, to discuss the auditor's remit and any 
               issues arising from the audit; and 
 
 
          *    Discussed with the external auditor the factors that 
               could affect audit quality and reviewed and approved 
               the annual audit plan, ensuring it is consistent with 
               the scope of the audit engagement, having regard to 
               the seniority, expertise and experience of the audit 
               team. 
 
 
         The committee reviewed the findings of the audit with the external 
         auditor, including: 
          *    A discussion of issues which arose during the audit, 
               including any errors identified during the audit; and 
               the auditor's explanation of how the risks to audit 
               quality were addressed; 
 
 
          *    Key accounting and audit judgements; 
 
 
          *    The auditor's view of their interactions with senior 
               management; 
 
 
          *    A review of any representation letters requested by 
               the external auditor before they were signed by 
               management; 
 
 
          *    A review of the management letter and management's 
               response to the auditor's findings and 
               recommendations; and 
 
 
          *    A review of the effectiveness of the audit process, 
               including an assessment of the quality of the audit, 
               the handling of key judgements by the auditor, and 
               the auditor's response to questions from the 
               committee. 
 
Donald Nicolson 
Audit Committee Chair 
 
 
 
Remuneration Committee Report 
 
Scirocco's Remuneration Committee reviews the scale and structure 
 of the Executive Directors' remuneration and the terms of their service 
 contracts. 
 
The remuneration and terms and conditions of appointment of the Non-Executive 
 Directors are set by the Board. 
 
Mr Alastair Ferguson chairs the committee and Mr Jon Fitzpatrick 
 and Mr Donald Nicolson are the other members. The Remuneration Committee 
 meets at least twice a year. 
 
In setting the remuneration for the Executive Directors and key staff, 
 the committee compares published remuneration data for other AIM 
 and Main LSE Board oil and gas companies of a similar market capitalisation 
 and seeks to ensure that the remuneration of the Executive Directors 
 is broadly comparable to their peers in other similarly sized organisations. 
 Moving forward the committee intends to broaden the group of companies 
 it reviews in this regard to include low carbon and renewable companies 
 of a similar standing. 
 
In 2020, the Remuneration Committee supported the company in a number 
 of changes to the remuneration policy and compensation payments due 
 to directors, these included; 
 
      *    c. 50% reduction in Directors' fees in February and 
           March 2020; 
 
      *    100% reduction in Directors' fees since April 2020 
 
      *    Implementation of a share option scheme in lieu of 
           fees for the Board and Executive Management which 
           will support the Board's desire to preserve the 
           Company's cash position; and 
 
      *    Granted incentive awards to each Director and key 
           management as part of their normal incentivisation 
           arrangements to align them with the future share 
           price performance of the Company. 
 
Alastair Ferguson 
Remuneration Committee Chair 
 
 
AIM Rules Compliance and Disclosures Committee 
 
Scirocco's AIM Rules Compliance and Disclosures Committee is responsible 
 for ensuring the Company has, at all times, sufficient procedures, 
 resources and controls in place to enable compliance with the AIM 
 Rules for Companies and make accurate disclosures to meet its disclosure 
 obligations under MAR. 
 
The committee is comprised of Jon Fitzpatrick (Chairman), Donald 
 Nicolson, and Tom Reynolds. 
 
The Committee was established in 2020 and has been active as part 
 of the process in producing the financial statements. The Committee 
 has established protocols to: 
 
      *    Ensure that each meeting of the full Board includes 
           discussions of AIM matters, in particular to brief 
           the Board as to issues raised with the Nomad and 
           advice given, as they arise; 
 
      *    Ensure that the executive Directors are communicating 
           as necessary with the Company's Nomad regarding 
           ongoing compliance with the AIM Rules and in relation 
           to proposed or potential transactions; 
 
      *    Ensure that advice received from the Nomad is 
           recorded and taken into account; 
 
      *    Ensure that all announcements made have been verified 
           and approved by the Nomad whose name must be on all 
           material announcements to RNS; 
 
      *    Ensure that the Nomad is supplied with information on 
           the Company's financial condition on a regular and 
           timely basis and of any other key developments in the 
           Company from time to time; 
 
      *    Ensure that the Nomad is maintaining regular contact 
           with the Company; 
 
      *    Circulate to other members of the Board details of 
           any rule changes which are notified to the Chairman 
           of the Committee by the Nomad; and 
 
      *    Ensure that the executive Directors take into account 
           advice given by the Nomad from time to time. 
 
The Committee met twice in the course of 2020. 
 
Jonathan Fitzpatrick 
AIM Rules Compliance and Disclosures Committee Chair 
 
 
INDEPENT AUDITOR'S REPORT 
 TO THE MEMBERS OF SCIROCCO ENERGY PLC 
Opinion 
 
We have audited the financial statements of Scirocco Energy Plc 
 (the 'company') for the year ended 31 December 2020 which comprise 
 the Statement of Comprehensive Income, the Statement of Financial 
 Position, the Statement of Changes in Equity, the Statement of Cash 
 Flows and notes to the financial statements, including significant 
 accounting policies. The financial reporting framework that has 
 been applied in their preparation is applicable law and international 
 accounting standards in conformity with the requirements of the 
 Companies Act 2006. 
      In our opinion, the financial statements: 
        *    give a true and fair view of the state of the 
             company's affairs as at 31 December 2020 and of its 
             loss for the year then ended; 
 
 
        *    have been properly prepared in accordance with 
             international accounting standards in conformity with 
             the requirements of the Companies Act 2006; and 
 
 
        *    have been prepared in accordance with the 
             requirements of the Companies Act 2006. 
Basis for opinion 
 
We conducted our audit in accordance with International Standards 
 on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities 
 under those standards are further described in the Auditor's responsibilities 
 for the audit of the financial statements section of our report. 
 We are independent of the company in accordance with the ethical 
 requirements that are relevant to our audit of the financial statements 
 in the UK, including the FRC's Ethical Standard as applied to listed 
 entities, and we have fulfilled our other ethical responsibilities 
 in accordance with these requirements. We believe that the audit 
 evidence we have obtained is sufficient and appropriate to provide 
 a basis for our opinion. 
 Material uncertainty related to going concern 
 We draw attention to note 1 in the financial statements, which indicates 
 that in order to meet spending requirements for existing projects 
 after 12 months from the date of the approval of these financial 
 statements, additional funding will be required. The amount of funding 
 cannot be reliably estimated at the point of approval of these financial 
 statements and the Company will be required to raise additional 
 funds either via an issue of equity or through the issuance of debt. 
 As stated in note 1, these events or conditions indicate that a 
 material uncertainty exists that may cast significant doubt on the 
 company's ability to continue as a going concern. Our opinion is 
 not modified in respect of this matter. 
 In auditing the financial statements, we have concluded that the 
 director's use of the going concern basis of accounting in the preparation 
 of the financial statements is appropriate. 
 Our responsibilities and the responsibilities of the directors with 
 respect to going concern are described in the relevant sections 
 of this report. 
 
Emphasis of matter 
 
We draw your attention to note 3 of the financial statements, which 
 describes the company's assessment of the recoverability over the 
 receivables of GBP219k which remains outstanding as of the audit 
 report date. The company have explained their assessment over the 
 recoverability within critical accounting estimates and conclude 
 that there is no further impairment due. The financial statements 
 do not include the adjustments that would result if the company 
 was unable to fully recover the debt. 
 Our opinion is not modified in this respect. 
 
 
Our application of materiality 
 
In planning and performing our audit we applied the concept of materiality. 
 An item is considered material if it could reasonably be expected 
 to change the economic decisions of a user of the financial statements. 
 We used the concept of materiality to both focus our testing and 
 to evaluate the impact of misstatements identified. 
 
Based on our professional judgement, we determined overall materiality 
 for the financial statements as a whole to be GBP190,000 (2019: 
 GBP208,000) based on approximately 1% of gross assets on the basis 
 that the company's investments are the main components of the Statement 
 of Financial Position. 
 
We use a different level of materiality ('performance materiality') 
 to determine the extent of our testing for the audit of the financial 
 statements. Performance materiality is set based on 70% of overall 
 materiality being GBP133,000 (2019: 60% of overall materiality being 
 GBP124,800). This has been adjusted for the judgements made as to 
 the entity risk and our evaluation of the specific risk of each 
 audit area having regard to the internal control environment. 
Where considered appropriate performance materiality may be reduced 
 to a lower level, such as, for related party transactions and directors' 
 remuneration. 
 
We agreed with the audit committee to report to it all identified 
 errors in excess of GBP9,500 (2019: GBP10,400). Errors below that 
 threshold would also be reported to it if, in our opinion as auditor, 
 disclosure was required on qualitative grounds. 
 
Our approach to the audit 
 
In designing our audit, we determined materiality and assessed the 
 risks of material misstatement in the financial statements. In particular 
 we looked at areas involving significant accounting estimates and 
 judgements by the directors in respect of the carrying values of 
 the company's investments and intangible assets, and considered 
 future events that are inherently uncertain. We also addressed the 
 risk of management override of internal controls, including evaluation 
 whether there was evidence of bias by the directors that represented 
 a risk of material misstatement due to fraud. 
 
Key audit matters 
 
Key audit matters are those matters that, in our professional judgment, 
 were of most significance in our audit of the financial statements 
 of the current period and include the most significant assessed 
 risks of material misstatement (whether or not due to fraud) we 
 identified, including those which had the greatest effect on: the 
 overall audit strategy, the allocation of resources in the audit; 
 and directing the efforts of the engagement team. These matters 
 were addressed in the context of our audit of the financial statements 
 as a whole, and in forming our opinion thereon, and we do not provide 
 a separate opinion on these matters. 
 
 
Key Audit Matter                              How our scope addressed this matter 
 
Valuation of Intangible Assets (Notes 
 12 and 16) 
The company has capitalised deferred                      Our work in this area included 
 exploration and evaluation expenditure.                   but was not limited to: 
 Management are required to ensure                          *    Enquiring with the management as to whether any 
 that only costs which meet the IFRS                             offers were received during the year, or post 
 criteria of an asset and accord                                 year-end, for the assets. Comparing the value of 
 with the company's accounting policy                            these offers to the current value of the assets and 
 are capitalised. Additionally, the                              consider whether an impairment is required; 
 management are actively pursuing 
 several markets on potentially selling 
 the assets. There is a risk that                           *    Reviewing disclosures made in respect of the assets 
 these are not accounted for in accordance                       and ensuring these are accurate and in accordance 
 with IFRS 5. Specifically, there                                with IFRS 5; 
 is a risk that the assets are incorrectly 
 classified as held for sale. 
 Given that the assets were not sold                        *    Reviewing disclosures made in respect of any linked 
 during the year, there is also a                                liabilities as these will need to be separately 
 risk that the fair value of the                                 disclosed under IFRS 5; and 
 assets have decreased further and 
 thus an impairment may be required 
 but may not have been accounted                            *    Reviewing management's assessment of the valuation 
 for by the management.                                          and impairment of intangible assets. Challenging 
 Given the significance of the intangible                        management assumptions and estimates and ensuring 
 non-current assets on the company's                             reasonableness. 
 Statement of Financial Position 
 and the significant management judgement 
 involved in the determination and                         It was noted that the investment 
 the assessment of the carrying values                     in Corallian Energy Limited was 
 of these assets, there is increased                       incorrectly classified as an intangible 
 risk of material misstatement or                          asset in the prior year. This 
 that the values will not be recovered                     has subsequently been reclassified 
 due to the inherent uncertainties                         as an unquoted equity investment. 
 which exist with oil and gas exploration                  This restatement has no overall 
 activities.                                               impact on the equity as reported 
                                                           at 31 December 2019. 
 
Valuation and impairment of Investments 
 (Note 14) 
The company held investments with                         Our work in this area included; 
 a value of GBP1.5m as at 31 December                       *    Reviewing the valuation methodology for the 
 2020. These are valued in accordance                            investment held and ensuring that the carrying values 
 with IFRS 13 and the fair value                                 are supported by sufficient and appropriate audit 
 hierarchy; and classified as per                                evidence; 
 IFRS 9. 
 There is the risk that these investments 
 have not been valued in accordance                         *    Ensuring that all asset types are categorised 
 with IFRS 13 and IFRS 9 and an impairment                       according to IFRS, including the accounting 
 may be required but may not have                                disclosures as required under IFRS 9; 
 been accounted for by the management. 
 
                                                            *    Reviewing the movement in investments to ensure it is 
                                                                 accounted for and disclosed correctly in line with 
                                                                 IFRS 9; 
 
 
                                                            *    Reviewing disclosures in relation to the said assets; 
 
 
                                                            *    Ensuring that Scirocco Energy Plc has full title to 
                                                                 the investments held; 
 
 
                                                            *    Ensuring that appropriate disclosures surrounding the 
                                                                 estimates made in respect of any valuations are 
                                                                 included in the financial statements; and 
 
 
                                                            *    Consider whether the transactions have been accounted 
                                                                 for correctly within the financial statements. 
 
 
                                                           Our work indicated that the investments 
                                                           are fairly stated in the financial 
                                                           statements. 
 
 
Other information 
The other information comprises the information included in the 
 annual report, other than the financial statements and our auditor's 
 report thereon. The directors are responsible for the other information 
 contained within the annual report. Our opinion on the financial 
 statements does not cover the other information and, except to the 
 extent otherwise explicitly stated in our report, we do not express 
 any form of assurance conclusion thereon. Our responsibility is 
 to read the other information and, in doing so, consider whether 
 the other information is materially inconsistent with the financial 
 statements or our knowledge obtained in the course of the audit, 
 or otherwise appears to be materially misstated. If we identify 
 such material inconsistencies or apparent material misstatements, 
 we are required to determine whether this gives rise to a material 
 misstatement in the financial statements themselves. If, based on 
 the work we have performed, we conclude that there is a material 
 misstatement of this other information, we are required to report 
 that fact. 
 We have nothing to report in this regard. 
 
Opinions on other matters prescribed by the Companies Act 2006 
        In our opinion, based on the work undertaken in the course of the 
         audit: 
          *    the information given in the strategic report and the 
               directors' report for the financial year for which 
               the financial statements are prepared is consistent 
               with the financial statements; and 
 
 
          *    the strategic report and the directors' report have 
               been prepared in accordance with applicable legal 
               requirements. 
 
Matters on which we are required to report by exception 
        In the light of the knowledge and understanding of the company and 
         its environment obtained in the course of the audit, we have not 
         identified material misstatements in the strategic report or the 
         directors' report. 
         We have nothing to report in respect of the following matters in 
         relation to which the Companies Act 2006 requires us to report to 
         you if, in our opinion: 
          *    adequate accounting records have not been kept, or 
               returns adequate for our audit have not been received 
               from branches not visited by us; or 
 
 
          *    the financial statements are not in agreement with 
               the accounting records and returns; or 
 
 
          *    certain disclosures of directors' remuneration 
               specified by law are not made; or 
 
 
          *    we have not received all the information and 
               explanations we require for our audit. 
 
Responsibilities of directors 
As explained more fully in the directors' responsibilities statement, 
 the directors are responsible for the preparation of the financial 
 statements and for being satisfied that they give a true and fair 
 view, and for such internal control as the directors determine is 
 necessary to enable the preparation of financial statements that 
 are free from material misstatement, whether due to fraud or error. 
 In preparing the financial statements, the directors are responsible 
 for assessing the company's ability to continue as a going concern, 
 disclosing, as applicable, matters related to going concern and 
 using the going concern basis of accounting unless the directors 
 either intend to liquidate the company or to cease operations, or 
 have no realistic alternative but to do so. 
 
 
Auditor's responsibilities for the audit of the financial statements 
        Our objectives are to obtain reasonable assurance about whether 
         the financial statements as a whole are free from material misstatement, 
         whether due to fraud or error, and to issue an auditor's report 
         that includes our opinion. Reasonable assurance is a high level 
         of assurance but is not a guarantee that an audit conducted in accordance 
         with ISAs (UK) will always detect a material misstatement when it 
         exists. Misstatements can arise from fraud or error and are considered 
         material if, individually or in the aggregate, they could reasonably 
         be expected to influence the economic decisions of users taken on 
         the basis of these financial statements. 
         Irregularities, including fraud, are instances of non-compliance 
         with laws and regulations. We design procedures in line with our 
         responsibilities, outlined above, to detect material misstatements 
         in respect of irregularities, including fraud. The extent to which 
         our procedures are capable of detecting irregularities, including 
         fraud is detailed below: 
          *    We obtained an understanding of the company and the 
               sector in which it operates to identify laws and 
               regulations that could reasonably be expected to have 
               a direct effect on the financial statements. We 
               obtained our understanding in this regard through 
               discussions with management, industry research, 
               application of cumulative audit knowledge and 
               experience of the sector etc. This is evidenced by 
               discussion of laws and regulations with the 
               management, reviewing regulatory news service 
               announcements and minutes of meetings of those 
               charged with governance, and review of legal or 
               professional expenditures. 
 
 
          *    We determined the principal laws and regulations 
               relevant to the company in this regard to be those 
               arising from Companies Act 2006, AIM rules, GDPR, 
               Employment Law, Health and Safety Law, Anti-Bribery 
               and Money Laundering Regulations and QCA compliance. 
 
 
          *    We designed our audit procedures to ensure the audit 
               team considered whether there were any indications of 
               non-compliance by the company with those laws and 
               regulations. These procedures included, but were not 
               limited to: 
 
 
         - Discussion with management regarding potential non-compliance; 
         - Review of legal and professional fees to understand the nature 
         of the costs and the existence of any non-compliance with laws and 
         regulations; and 
         - Review of minutes of meetings of those charged with governance 
         and regulatory news service announcements 
          *    We also identified the risks of material misstatement 
               of the financial statements due to fraud. We 
               considered, in addition to the non-rebuttable 
               presumption of a risk of fraud arising from 
               management override of controls, that the potential 
               for management bias was identified in relation to the 
               carrying value of the investments and intangible 
               assets. 
 
 
          *    As in all of our audits, we addressed the risk of 
               fraud arising from management override of controls by 
               performing audit procedures which included, but were 
               not limited to: the testing of journals; reviewing 
               accounting estimates for evidence of bias; and 
               evaluating the business rationale of any significant 
               transactions that are unusual or outside the normal 
               course of business and review of bank statements 
               during the year to identify any large and unusual 
               transactions where the business rationale is not 
               clear. 
 
 
         Because of the inherent limitations of an audit, there is a risk 
         that we will not detect all irregularities, including those leading 
         to a material misstatement in the financial statements or non-compliance 
         with regulation. This risk increases the more that compliance with 
         a law or regulation is removed from the events and transactions 
         reflected in the financial statements, as we will be less likely 
         to become aware of instances of non-compliance. The risk is also 
         greater regarding irregularities occurring due to fraud rather than 
         error, as fraud involves intentional concealment, forgery, collusion, 
         omission or misrepresentation. 
A further description of our responsibilities for the audit of the 
 financial statements is located on the Financial Reporting Council's 
 website at: www.frc.org.uk/auditorsresponsibilities. This description 
 forms part of our auditor's report. 
 
 
Use of our report 
This report is made solely to the company's members, as a body, 
 in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 
 Our audit work has been undertaken so that we might state to the 
 company's members those matters we are required to state to them 
 in an auditor's report and for no other purpose. To the fullest 
 extent permitted by law, we do not accept or assume responsibility 
 to anyone, other than the company and the company's members as a 
 body, for our audit work, for this report, or for the opinions we 
 have formed. 
 
Zahir Khaki (Senior Statutory Auditor) 
for and on behalf of PKF Littlejohn 
 LLP 
Statutory Auditor 
15 Westferry Circus, London, E14 
 4HD 
Date: 14 June 2021 
 
 
                                                       STATEMENT OF COMPREHENSIVE INCOME 
                                                     FOR THE YEARED 31 DECEMBER 2020 
                                                                         2020       2019 
                                                            Notes      GBP000     GBP000 
Continuing operations 
 
Administrative expenses                                       6       (3,323)      (2,558) 
 
 
 
Loss before investment activities                             6       (3,323)      (2,558) 
 
Other gains and losses                                        8             -         (63) 
 
 
 
Loss before taxation                                                  (3,323)      (2,621) 
 
Income tax expense                                            9             -          - 
 
 
 
Loss for the year from continuing 
 operations                                                           (3,323)      (2,621) 
 
Discontinued operations                                       10 
 
Assets held for sale                                                       15         60 
Loss recognised on classification as held 
 for sale                                                               (810)          - 
 
 
 
(Loss)/profit for the year from discontinuing 
 operations                                                             (795)         60 
 
 
 
Loss and total comprehensive 
 income for the year                                                  (4,118)      (2,561) 
 
 
 
Total comprehensive Income attributable 
 to owners of the parent                                              (4,118)      (2,561) 
 
 
 
Earnings per share (pence) 
Basic and diluted                                             11       (0.57)       (0.41) 
 
Earnings per share from continuing operations 
Basic and diluted                                                      (0.46)       (0.42) 
 
Earnings per share from discontinued operations 
Basic and diluted                                                      (0.11)       0.01 
 
 
 
The accounting policies and notes on pages 43 to 77 form part of 
 these financial statements. 
 
 
 
                                                          STATEMENT OF FINANCIAL POSITION 
                                                                   AS AT 31 DECEMBER 2020 
                                                                        31 Dec     31 Dec 
                                                                          2020       2019 
                                                                                 Restated 
                                                           Notes        GBP000     GBP000 
 
Non-current assets 
Intangible assets                                            12              -     14,967 
Oil & gas properties                                         13              -        358 
Investments                                                  14          1,667      3,052 
 
 
 
                                                                         1,667     18,377 
 
 
 
Current assets 
Trade and other receivables                                  17            421      1,437 
Cash and cash equivalents                                                1,168      1,064 
Assets held for sale                                         16         14,803          - 
 
 
 
                                                                        16,392      2,501 
 
 
 
Total assets                                                            18,059     20,878 
 
 
 
Current liabilities 
 
Trade and other payables                                     18            248        365 
Provisions                                                   19              -        184 
Liabilities held for sale                                    16            166          - 
 
 
 
                                                                           414        549 
 
 
 
Net current assets                                                      15,978      1,952 
 
 
 
Non-current liabilities 
 
Long term provisions                                         19              -        168 
 
 
 
Total liabilities                                                          414        717 
 
 
 
Net assets                                                              17,645     20,161 
 
 
 
Equity 
 
Called up share capital                                      20          1,448      1,264 
Share premium account                                        21         38,399     37,316 
Deferred share capital                                       20          1,831      1,831 
Share based payments                                         22          1,470      1,135 
Retained earnings                                                     (25,503)     (21,385) 
 
 
 
Total equity                                                            17,645     20,161 
 
 
 
The accounting policies and notes on pages 43 to 77 form part of 
 these financial statements. 
 
 
 
The financial statements were approved by the board of directors 
 and authorised for issue on 14 June 2021 and are signed on its behalf 
 by: 
 
Mr Tom Reynolds 
Director 
Date: 14 June 2021 
 
Company Registration No. 05542880 
 
 
                                                                        STATEMENT OF CHANGES IN EQUITY 
                                                                   FOR THE YEARED 31 DECEMBER 2020 
                                  Share         Share      Deferred  Share-based    Retained     Total 
                                capital       premium         share     payments    earnings 
                                              account       capital 
                  Notes          GBP000        GBP000        GBP000       GBP000      GBP000    GBP000 
 
Balance at 1 
 January 2019                     1,264        37,316         1,831        1,135    (18,824)    22,722 
 
Year ended 31 
December 2019: 
Loss and total 
 comprehensive 
 income for the 
 year                                 -             -             -            -     (2,561)     (2,561) 
 
 
 
Balance at 31 
 December 2019                    1,264        37,316         1,831        1,135    (21,385)    20,161 
 
 
 
Year ended 31 
December 2020: 
Loss and total 
 comprehensive 
 income for the 
 year                                 -             -             -            -     (4,118)     (4,118) 
Issue of share 
 capital            20              184         1,083             -            -           -     1,267 
Credit to 
 equity for 
 equity-settled 
 share-based 
 payments           22                -             -             -          335           -       335 
 
 
 
Balance at 31 December 
 2020                             1,448        38,399         1,831        1,470    (25,503)    17,645 
 
 
 
The accounting policies and notes on pages 43 to 77 form part of these financial statements. 
 
 
 
STATEMENT OF CASH FLOWS 
 FOR THE YEARED 31 DECEMBER 2020 
                                                                         2020            2019 
                                                                                         as restated 
                                                        Notes    GBP000  GBP000  GBP000       GBP000 
 
Cash flows from operating activities 
 
Cash absorbed by continuing 
 operations                                               28              (877)                (2,514) 
 
Interest paid                                                               (3)                   (12) 
 
 
 
Net cash outflow from operating 
 activities                                                               (880)                (2,526) 
 
Investing activities 
Purchase of intangible assets                                     (293)           (147) 
Proceeds on disposal of intangibles                                   -           1,668 
Payments to acquire investments                                       -           (854) 
Proceeds on disposal of investments                                  10               - 
Increase in loans and receivables                                     -            (76) 
 
 
 
Net cash (used in)/generated 
 from investing activities                                                (283)                  591 
 
Financing activities 
Proceeds from issue of shares                                     1,267               - 
 
 
 
Net cash generated from financing 
 activities                                                               1,267                    - 
 
 
 
Net increase/(decrease) in cash 
 and cash equivalents                                                       104                (1,935) 
 
Cash and cash equivalents at beginning 
 of year                                                                  1,064                2,999 
 
 
 
Cash and cash equivalents 
 at end of year                                                           1,168                1,064 
 
 
 
The accounting policies and notes on pages 43 to 77 form part of 
 these financial statements. 
 
 
 
NOTES TO THE FINANCIAL STATEMENTS 
 FOR THE YEARED 31 DECEMBER 2020 
1  Accounting policies 
   Company information 
   Scirocco Energy plc ("Scirocco", the "Company") is a public listed 
    company incorporated in England & Wales. The address of its registered 
    office 1 Park Row, Leeds, United Kingdom, LS1 5AB. The Company's 
    ordinary shares are traded on the AIM Market operated by the 
    London Stock Exchange. The financial statements of Scirocco Energy 
    plc for the year ended 31 December 2020 were authorised for issue 
    by the Board on 11 June 2021 and the statement of financial position 
    is signed on the Board's behalf by Mr Reynolds. 
    Investing policy 
    Scirocco's investing policy is to acquire a diverse portfolio 
    of direct and indirect interests in exploration, development 
    and production oil and gas assets, and any other subsurface gas 
    assets of potential commercial significance, located worldwide 
    but predominantly in the Americas, Europe or Africa. 
    The Company may invest by way of outright acquisition or by the 
    acquisition of assets, including the intellectual property, of 
    relevant business, partnerships or joint venture arrangements. 
    Such investments may result in the Company acquiring the whole 
    part of a company or project (which in the case of an investment 
    in a company may be private or listed on a stock exchange, and 
    which may be pre-revenue), may constitute a minority stake in 
    the Company or project in question and may take the form of equity, 
    joint venture debt, convertible instruments, license rights, 
    or other financial instruments as the Directors deem appropriate. 
    Scirocco intends to be a long-term investor and the Directors 
    will place no minimum or maximum limit on the length of time 
    that any investment may be held. 
    There is no limit on the number of projects into which the Company 
    may invest, nor the proportion of the Company's gross assets 
    that any investment may represent at any time and the Company 
    will consider possible opportunities anywhere in the world. 
    All of Scirocco's assets will be held in its own name, or through 
    wholly owned subsidiaries. 
    Statement of compliance with IFRS 
    The financial statements have been prepared in accordance with 
    International Financial Reporting Standards (IFRS) and as applied 
    in accordance with the provisions of the Companies Act 2006. 
    The principal accounting policies adopted by the Company are 
    set out below. 
   Accounting convention 
   The financial statements have been prepared on the historical 
    cost basis, except for the measurement to fair value of assets 
    and financial instruments as described in the accounting policies 
    below, and on a going concern basis. 
    The financial report is presented in Pound Sterling (GBP) and 
    all values are rounded to the nearest thousand pounds (GBP'000) 
    unless otherwise stated. The functional currency of the company 
    is also GBP. 
 
 
1  Accounting policies 
 
   Going concern 
   The Directors noted the losses that the Company has made for 
    the year ended 31 December 2020. The Directors have prepared 
    cash flow forecasts for the period ending 31 December 2022 which 
    take account of the current costs and operational structure of 
    the Company. 
    The cost structure of the Company comprises a high proportion 
    of discretionary spend and therefore in the event that cash flows 
    become constrained, costs can be quickly reduced to enable the 
    Company to operate within its available funding. 
    These forecasts, demonstrate that the Company has sufficient 
    cash resources available, on the assumption that further funds 
    can be sourced as and when needed, to allow it to continue in 
    business for a period of at least twelve months from the date 
    of approval of these financial statements. Accordingly, the financial 
    statements have been prepared on a going concern basis. 
    In their assessment of going concern the directors have considered 
    the current impact on the business as a result of the COVID-19 
    virus and the oil price crash, including revisions where required 
    to budgets and projections. The COVID-19 pandemic has not had 
    a significant, immediate impact on the Company's operations. 
    Having regard to the above, the directors continue to believe 
    it appropriate to adopt the going concern basis of accounting 
    in preparing the financial statements. The financial statements 
    do not include any adjustments that may result from any significant 
    changes in the assumptions noted above in preparing the financial 
    statements on a going concern basis. 
    It is the prime responsibility of the Board to ensure the Company 
    remains a going concern. The Company has sufficient funding to 
    meet their debts as they fall due. At 31 December 2020 the Company 
    had cash and cash equivalents of GBP1,168k and borrowings of 
    GBPnil. The Company has minimal contractual expenditure commitments 
    and the Board considers the present funds sufficient to maintain 
    the working capital of the Company for a period of at least 12 
    months from the date of signing in the Annual Report and Financial 
    Statements taking into account the current COVID-19 and oil price 
    environment. For these reasons the Directors adopt the going 
    concern basis in the preparation of the Financial Statements. 
 
   Intangible assets 
   Externally acquired intangible assets comprising deferred exploration 
    and evaluation expenditure are initially recognised at cost in 
    compliance with IFRS 6 "Exploration for an evaluation of mineral 
    resources." 
    The Company follows the successful efforts method of accounting 
    for exploration and evaluation expenditure. All license, acquisition 
    and exploration and evaluation costs are capitalised in cost 
    centres by area of interest pending determination of the commercial 
    viability of the relevant product. 
 
 
1  Accounting policies 
 
   Impairment of tangible and intangible assets 
   At each balance sheet date the Company reviews the carrying amounts 
    of its tangible and intangible assets to determine whether there 
    is any indication that those assets have suffered an impairment 
    loss. If there is such indication then an estimate of the asset's 
    recoverable amount is performed and compared to the carrying 
    amount. 
    Recoverable amount is the higher of fair value less costs to 
    sell and value in use. In assessing value in use, the estimated 
    future cash flows are discounted at their present value. Where 
    the asset does not generate cash flows that are independent from 
    other assets, the Company estimated the recoverable amount of 
    the cash-generating unit to which the asset belongs. 
    If the recoverable amount of an asset is estimated to be less 
    than its carrying amount, the carrying amount of the assets is 
    reduced to its recoverable amount. An impairment loss is recognised 
    as an expense immediately, unless the relevant asset is carried 
    at a re-valued amount, in which case the impairment loss is treated 
    as a revaluation decrease, 
    Where an impairment loss subsequently reverses, the carrying 
    amount of the asset is increased to the revised estimate of its 
    recoverable amount, but so that the increased carrying amount 
    does not exceed the carrying amount that would have been determined 
    had no impairment loss been recognised for the asset in prior 
    periods. A reversal of an impairment loss is recognised as income 
    immediately, unless the relevant asset is carried at a re-valued 
    amount, in which case the reversal of the impairment loss is 
    treated as a revaluation increase. 
 
   Current assets held for sale 
   Current assets are classified as assets held for sale when their 
    carrying amount is to be recovered principally through a sale 
    transaction and a sale is considered highly probable. They are 
    stated at the lower of carrying amount and fair value less costs 
    to sell. 
    Discontinued operations 
    In accordance with IFRS 5 'Non-current assets held for sale and 
    discontinued operations', the net results relating to the assets 
    held for sale are presented within discontinued operations in 
    the income statement (for which the comparatives have been restated) 
    and the assets and liabilities of these operations are presented 
    separately in the balance sheet. Refer to note 10 for further 
    details. 
 
   Fair value measurement 
   IFRS 13 establishes a single source of guidance for all fair 
    value measurements. IFRS 13 does not change when an entity is 
    required to use fair value, but rather provides guidance on how 
    to measure fair value under IFRS when fair value is required 
    or permitted. The resulting calculations under IFRS 13 affected 
    the principles that the Company uses to assess the fair value, 
    but the assessment of fair value under IFRS 13 has not materially 
    changed the fair values recognised or disclosed. IFRS 13 mainly 
    impacts the disclosures of the Company. It requires specific 
    disclosures about fair value measurements and disclosures of 
    fair values, some of which replace existing disclosure requirements 
    in other standards. There is one financial instrument measured 
    at fair value, details of which can be seen at Note 23. 
 
   Cash and cash equivalents 
   Cash in the statement of financial position comprise cash at 
    banks and on hand, which are subject to an insignificant risk 
    of changes in value. 
 
 
1  Accounting policies 
 
   Financial instruments 
     Financial assets and financial liabilities are recognised on 
      the balance sheet when the Company has become a party to the 
      contractual provisions of the instrument. 
      Classification 
      The company classifies its financial assets and liabilities in 
      the following measurement categories: 
       *    those to be measured subsequently at fair value 
            (either through Other Comprehensive Income or through 
            profit or loss); and 
 
 
       *    those to be measured at amortised cost. 
 
 
      The classification depends on the entity's business model for 
      managing the financial assets and the contractual terms of the 
      cash flows. 
      Recognition and measurement 
      A financial instrument is recognised if the Company becomes a 
      party to the contractual provisions of the instrument. Financial 
      assets are derecognised if the Company's contractual rights to 
      the cash flows from the financial assets expire or if the Company 
      transfers the financial asset to another party without retaining 
      control or substantially all risks and rewards of the asset. 
      Regular way purchases and sales of financial assets are accounted 
      for at trade date, i.e. the date the Company commits itself to 
      purchase or sell the asset. 
      At initial recognition, the Company measures a financial asset 
      at its fair value plus, in the case of a financial asset not 
      at fair value through profit or loss ("FVTPL"), transaction costs 
      that are directly attributable to the acquisition of the financial 
      asset. Transaction costs of financial assets carried at FVTPL 
      are expensed in profit or loss. 
      Subsequent measurement of debt instruments depends on the Company's 
      business model for managing the asset and the cash flow characteristics 
      of the asset. Currently, the Company's financial assets are all 
      held for collection of contractual cash flows, which are solely 
      payments of principal and interest. Accordingly, the Company's 
      financial assets are measured subsequent to initial recognition 
      at amortised cost. 
      Impairment 
      On a forward-looking basis, the Company estimates the expected 
      credit losses associated with its receivables and other financial 
      assets carried at amortised cost and records a loss allowance 
      for these expected losses. 
      Trade and other receivables 
      Trade and other receivables outside of normal payment terms accrue 
      interest at a rate determined by the operator and are stated 
      at their nominal value as reduced by appropriate allowances for 
      estimated irrecoverable amounts. 
      Financial liability and equity 
      Financial liabilities and equity instruments are classified according 
      to the substance of the contractual arrangements entered into. 
      An equity instrument is any contract that evidences a residual 
      interest in the assets of the Company after deducting all of 
      its liabilities. 
      Trade and other payables 
      Trade and other payables are non-interest bearing and are stated 
      at their nominal value. 
      Equity instruments 
      Equity instruments issued by the Company are recorded at the 
      proceeds received, net of direct issue costs 
 
 
1  Accounting policies 
 
   Equity reserves 
   Share capital is determined using the nominal value of shares 
    that have been issued. 
    The share premium account represents premiums received on the 
    initial issuing of the share capital. Any transaction costs associated 
    with the issuing of shares are deducted from share premium, net 
    of any related income tax benefits. 
    The share based payment reserve represents the cumulative amount 
    which has been expensed in the income statement in connection 
    with share based payments, less any amounts transferred to retained 
    earnings on the exercise of share options. 
    FVOCI reserve represents the market value movement of FVOCI investments. 
    Retained earnings includes all current and prior period results 
    as disclosed in the income statement. 
 
   Taxation 
   The tax expense represents the sum of the current tax and deferred 
    tax. 
 
   Current tax 
   The current tax is based on taxable profit for the period. Taxable 
    profit differs from net profit as reported in the income statement 
    because it excludes items of income or expense that are taxable 
    or deductible in other periods and it further excludes items 
    that are never taxable or deductible. The liability for current 
    tax is calculated by using tax rates that have been enacted or 
    substantively enacted by the balance sheet date. 
 
   Deferred tax 
   Deferred tax is the tax expected to be payable or recoverable 
    on differences between the carrying amount of assets and liabilities 
    in the financial statements and the corresponding tax bases used 
    in the computation of taxable profit, and is accounted for using 
    the balance sheet liability method. Deferred tax liabilities 
    are recognised for all taxable temporary differences and deferred 
    tax assets are recognised to the extent that it is probable that 
    taxable profits will be available against which deductible temporary 
    differences can be utilised. Such assets and liabilities are 
    not recognised if the temporary difference arises from goodwill 
    or from the initial recognition (other than in a business combination) 
    of other assets and liabilities in a transaction which affects 
    neither the tax profit not the accounting profit. 
 
   Provisions 
   Provisions are recognised for liabilities of uncertain timings 
    or amounts that have arisen as a result of past transactions 
    and are discounted at a pre-tax rate reflecting current market 
    assessments of the time value of money and the risks specific 
    to the liability. 
 
 
1  Accounting policies 
 
   Share-based payments 
   Where share options are awarded to employees, the fair value 
    of the options at the date of grant is charged to the income 
    statement over the vesting period. Non-market vesting conditions 
    are taken into account by adjusting the number of equity instruments 
    expected to vest at each balance sheet date so that, ultimately, 
    the cumulative amount recognised over the vesting period is based 
    on the number of options that eventually vest. Market vesting 
    conditions are factored into the fair value of the options granted. 
    As long as all other vesting conditions are satisfied, a charge 
    is made irrespective of whether the market vesting conditions 
    are satisfied. The cumulative expense is not adjusted for failure 
    to achieve a market vesting condition. 
    Where the terms and conditions of options are modified before 
    they vest, the increase in the fair value of the options, measured 
    immediately before and after the modification, is also charged 
    to the income statement over the remaining vesting period. 
    Where equity instruments are granted to persons other than employees, 
    the income statement is charged with the fair value of goods 
    and services received. Equity-settled share-based payments are 
    measured at a fair value at the date of grant except if the value 
    of the service can be reliably established. The fair value determined 
    at the grant date of equity-settled share-based payments is expensed 
    on a straight-line basis over the vesting period, based on the 
    Company's estimate of shares that will eventually vest. 
   Foreign exchange 
   Transactions in currencies other than Sterling are recorded at 
    the rates of exchange prevailing on the dates of the transactions. 
    At each balance sheet date, monetary assets and liabilities that 
    are denominated in foreign currencies are retranslated at the 
    rates prevailing on the balance sheet date. Gains and losses 
    arising on retranslation are included in the income statement 
    for the period. 
 
 
1  Accounting policies 
 
   Oil and gas properties and other property, plant and equipment 
   (i) Initial recognition 
    Oil and gas properties and other property, plant and equipment 
    are stated at cost, less accumulated depreciation and accumulated 
    impairment losses. 
    The initial cost of an asset comprises its purchase price or 
    construction cost, any costs directly attributable to bringing 
    the asset into operation, the initial estimate of the decommissioning 
    obligation and, for qualifying assets (where relevant), borrowing 
    costs. The purchase price or construction cost is the aggregate 
    amount paid and the fair value of any other consideration given 
    to acquire the asset. The capitalised value of a finance lease 
    is also included within property, plant and equipment. 
    When a development project moves into the production stage, the 
    capitalisation of certain construction/development costs ceases, 
    and costs are either regarded as part of the cost of inventory 
    or expensed, except for costs which qualify for capitalisation 
    relating to oil and gas property asset additions, improvements 
    or new developments. 
    (ii) Depreciation/amortisation 
    Oil and gas properties are depreciated/amortised on a unit-of 
    production basis over the total proved developed and undeveloped 
    reserves of the field concerned, except in the case of assets 
    whose useful life is shorter than the lifetime of the field, 
    in which case the straight-line method is applied. Rights and 
    concessions are depleted on the unit-of-production basis over 
    the total proved developed and undeveloped reserves of the relevant 
    area. 
    The unit-of production rate calculation for the depreciation/amortisation 
    of field development costs takes into account expenditures incurred 
    to date, together with sanctioned future development expenditure. 
    An item of property, plant and equipment and any significant 
    part initially recognised is derecognised upon disposal or when 
    no future economic benefits are expected from its use or disposal. 
    Any gain or loss arising on derecognition of the asset (calculated 
    as the difference between the net disposal proceeds and the carrying 
    amount of the asset) is included in the statement of profit or 
    loss and other comprehensive income when the asset is derecognised. 
    The asset's residual values, useful lives and methods of depreciation/amortisation 
    are reviewed at each reporting period and adjusted prospectively. 
    (iii) Major maintenance, inspection and repairs 
    Expenditure on major maintenance refits, inspections or repairs 
    comprises the cost of replacement assets or parts of asset, inspection 
    costs and overhaul costs. Where an asset, or part of an asset 
    that was separately depreciated and is now written off is replaced 
    and it is probably that future economic benefits associated with 
    the item will flow to the Company, the expenditure will be capitalised. 
    Where part of the asset replaced was not separately considered 
    as a component and therefore not depreciated separately, the 
    replacement value is used to estimate the carrying amount of 
    the replaced asset(s) and is immediately written off. Inspection 
    costs associated with major maintenance programmes are capitalised 
    and amortised over the period of the next inspection. All other 
    day-to-day repairs and maintenance costs are expensed as incurred. 
 
 
1  Accounting policies 
 
   Provision for rehabilitation / Decommissioning Liability 
   The Company recognises a decommissioning liability where it has 
    a present legal or constructive obligation as a result of past 
    events, and it is probably that an outflow of resources will 
    be required to settle the obligation, and a reliable estimate 
    of the amount of obligation can be made. 
    The obligation generally arises when the asset is installed or 
    the ground/environment is disturbed at the field location. When 
    the liability is initially recognised, the present value of the 
    estimated costs is capitalised by increasing the carrying amount 
    of the related oil and gas assets to the extent that it is incurred 
    by the development/construction of the field. Any decommissioning 
    obligations that arise through the production of inventory are 
    expensed when the inventory item is recognised in cost of goods 
    sold. 
    Changes in the estimated timing or cost of decommissioning are 
    dealt with prospectively by recording an adjustment to the provision 
    and a corresponding adjustment to oil and gas assets. Any reduction 
    in the decommissioning liability and, therefore, any deduction 
    from the asset to which it relates, may not exceed the carrying 
    amount of that asset. If it does, any excess over the carrying 
    value is taken immediately to the statement of profit or loss 
    and other comprehensive income. 
 
   Segmental reporting 
   A business segment is a group of assets or operations engaged 
    in providing services that are subject to risks and returns that 
    are different from those of other business segments. A geographical 
    segment is engaged in providing services within a particular 
    economic environment that is subject to different risks and returns 
    from other segments in other economic environments. The company 
    has two segments; corporate head office costs and Tanzania. 
    Operating segments are reported in a manner consistent with the 
    internal reporting provided to the chief operating decision-maker 
    (CODM). The CODM, who is responsible for allocating resources 
    and assessing performance of the operating segments, has been 
    identified as Thomas Reynolds that makes strategic decisions. 
    Segment results include items directly attributable to a segment 
    as well as those that can be allocated on a reasonable basis. 
 
   Investments 
   The Company's financial asset investments are classified and 
    measured at fair value, under IFRS 9, with changes in fair value 
    recognised in profit and loss as they arise. 
 
   Gains and losses on investments disposed of or identified are 
    included in the net profit or loss for the period. 
   Investments held by the Company are held for resale. Therefore 
    where the Company's equity stake in an investee company is 20% 
    or more equity accounting for associates is not considered to 
    be appropriate. 
 
 
2  Adoption of new and revised standards and changes in accounting 
    policies 
 
   In the current year, the following new and revised Standards 
    and Interpretations have been adopted by the Company. The adoption 
    of these standards has had no impact on the current period however 
    may have an effect on future periods. 
 
   Conceptual Framework             Amendments to References to               1 January 
                                     the Conceptual Framework in               2020 
                                     IFRS standards. 
 
   IAS 1 and IAS 8 (Amendments)     Definition of material                    1 January 
                                                                               2020 
 
   IFRS9, IAS 39 and IFRS           Interest Rate Benchmark Reform            1 January 
    7 (Amendments)                                                             2020 
 
   IFRS 3 (Amendments)              Definition of a business                  1 January 
                                                                               2020 
 
   IFRS 16 (Amendments)             Covid-19-related Rent Concessions         1 June 2020 
 
   Standards which are in issue but not yet effective 
 
   At the date of authorisation of these financial statements, the 
    following Standards and Interpretations, which have not yet been 
    applied in these financial statements, were in issue but not 
    yet effective (and in some cases had not yet been adopted by 
    the EU): 
 
   IFRS 7                           Insurance Contracts                       1 January 
                                                                               2023 
 
   IFRS 4 (Amendments)              Insurance Contracts                       1 January 
                                                                               2023 
 
   IAS 1 (Amendments)               Classification of Liabilities             1 January 
                                     as Current or Non-Current                 2023 
 
   IAS 16 (Amendments)              Property plant and equipment-             1 January 
                                     proceeds before intended use              2022 
 
   Annual Improvements              Amendments to IFRS 1 (subsidiary          1 January 
    2018-2020 Cycle                  as a first-time adopter), IFRS            2022 
                                     9 (fees in the '10 percent' 
                                     test for derecognition of financial 
                                     liabilities), IFRS 16 (lease 
                                     incentives), IAS 41 (taxation 
                                     in the fair value measurements) 
 
   IFRS 3 (Amendments)              References to the Conceptual              1 January 
                                     Framework                                 2022 
 
   IAS 37 (Amendments)              Onerous contracts - Cost of               1 January 
                                     Fulfilling a Contract                     2022 
 
   IFRS 4 (Amendments)              Extension of the Temporary                1 January 
                                     Exemption from Applying IFRS              2023 
                                     9 
 
   The directors do not expect that the adoption of the other Standards 
    listed above will have a material impact on the financial statements 
    of the Company aside from additional disclosures. 
 
 
 
3  Critical accounting estimates and judgements 
 
   The Company makes estimates and assumptions regarding the future. 
    Estimates and judgements are continually evaluated based on historical 
    experience and other factors, including expectations of future 
    events that are believed to be reasonable under the circumstances. 
    In the future, actual experience may differ from these estimates 
    and assumptions. The estimates and assumptions that have a significant 
    risk of causing a material adjustment to the carrying amounts 
    of assets and liabilities within the next financial year are 
    discussed below. 
 
   The preparation of the Financial Statements in conformity with 
    IFRS requires management to make estimates and assumptions that 
    affect the reported amounts of assets and liabilities and disclosure 
    of contingent assets and liabilities at the date of the financial 
    statements and the reported amount of expenses during the period. 
    Actual results may vary from the estimates used to produce these 
    Financial Statements. 
   Estimates and judgements are regularly evaluated and are based 
    on historical experience and other factors, including expectations 
    of future events that are believed to be reasonable under the 
    circumstances. 
   Items subject to such estimates and assumptions, that have a 
    significant risk of causing a material adjustment to the carrying 
    amounts of assets and liabilities within the next financial years, 
    include but are not limited to: 
 
   Useful lives of intangible assets and property, plant and equipment 
    (note 12) 
   Intangible assets and property, plant and equipment are amortised 
    or depreciated over their useful lives. Useful lives are based 
    on the management's estimates of the period that the assets will 
    generate revenue, which are based on judgement and experience 
    and periodically reviewed for continued appropriateness. Changes 
    to estimates can result in significant variations in the carrying 
    value and amounts charged to the income statement in specific 
    periods. 
 
   Share-based payments (note 22) 
 
   The Company utilised an equity-settled share-based remuneration 
    scheme for employees. Employee services received, and the corresponding 
    increase in equity, are measured by reference to the fair value 
    of the equity instruments at the date of grant, excluding the 
    impact of any non-market vesting conditions. The fair value of 
    share options are estimated by using Black-Scholes valuation 
    method as at the date of grant. The assumptions used in the valuation 
    are described in Note 22 and include, among others, the expected 
    volatility, expected life of the options and number of options 
    expected to vest. 
 
   Deferred taxation (note 9) 
   Deferred tax assets are recognised when it is judged more likely 
    than not that they will be recovered. Deferred tax assets are 
    currently nil based on the likelihood of recovery. 
 
 
3   Critical accounting estimates and judgements 
 
    Hydrocarbon reserve and resource estimates (note 13) 
    Hydrocarbon reserves are estimates of the amount of hydrocarbons 
     that can be economically and legally extracted from the Company's 
     oil and gas properties. The Company estimates its commercial 
     reserves and resources based on information compiled by appropriately 
     qualified persons relating to the geological and technical data 
     on the size, depth, shape and grade of the hydrocarbon body and 
     suitable production techniques and recovery rates. Commercial 
     reserves are determined using estimates of oil and gas in place, 
     recovery factors and future commodity prices, the latter having 
     an impact on the total amount of recoverable reserves and the 
     proportion of the gross reserves which are attributable to the 
     host government under the terms of the Production-Sharing Agreements. 
     A breakdown of reserves can be found below. Future development 
     costs are estimated using assumptions as to the number of wells 
     required to produce the commercial reserves, the cost of such 
     wells and associated production facilities, and other capital 
     costs. The current long-term gas price assumption used in the 
     estimation of commercial reserves currently held by the Company 
     is US$3/MMTBU. The carrying amount of oil and gas development 
     and production assets at 31 December 2020 is shown in note 13. 
 
           The Company estimates and reports hydrocarbon reserves in line 
            with the principles contained in the SPE Petroleum Resources 
            Management Reporting System (PRMS) framework. As the economic 
            assumptions used may change and as additional geological information 
            is obtained during the operation of a field, estimates of recoverable 
            reserves may change. Such changes may impact the Company's financial 
            position and results which include: 
             *    The carrying value of exploration and evaluation 
                  assets; oil and gas properties; property and plant 
                  and equipment may be affected due to changes in 
                  estimated future cash flows 
 
 
             *    Depreciation and amortisation charges in the income 
                  statement may change where such charges are 
                  determined using the Units of Production (UOP) method, 
                  or where the useful life of the related assets change 
 
 
             *    Provisions for decommissioning may require revision - 
                  where changes to the reserve estimates affect 
                  expectations about when such activities will occur 
                  and the associated cost of these activities. 
    Resource summary - Ntorya Field 
                                                        Gross Licence Basis (bcf) 
                                                                                                  Gross Mean 
                                                                                                unrestricted 
     Licence                                              1C         2C                    3C           GIIP 
                          Development 
     Mtwara                pending                        26         81                   213 
                          Development 
     Mtwara                unclarified                   324        682                   950          1,870 
                                                                    763 
    Resource summary excluding Ntorya Field 
                                              Prospective Resources (bcf)* 
                                                    Gross on Licence 
     Prospect/Lead                       1U               2U         3U         Mean unrisked           Pg % 
     Chikumbi Jurassic                  399              936      1,798               1,351**           8*** 
     Namisange                           56              235      1,925                 1,183           8*** 
     Likonde updip                       39              166        702                   444          10*** 
     Ziwani NW                            8               35        153                    68          <5*** 
     Ziwani SW                           12               54        236                   105          <5*** 
 
     *                   Assuming development licence is      ***        RPS assessment of PG 
                          ratified 
     **                  P50 
 
 
 
3  Critical accounting estimates and judgements 
 
         Exploration and evaluation expenditures (note 13) 
          The application of the Company's accounting policy for exploration 
          and evaluation expenditure requires judgement to determine whether 
          future economic benefits are likely, from either future exploitation 
          or sale, or whether activities have not reached a stage which 
          permits a reasonable assessment of the existence of reserves. 
          The determination of reserves and resources is itself an estimation 
          process that involves varying degrees of uncertainty depending 
          on how the resources are classified. These estimates directly 
          impact when the Company defers exploration and evaluation expenditure. 
          The deferral policy requires management to make certain estimates 
          and assumptions about future events and circumstances, in particular, 
          whether an economically viable extraction operation can be established. 
          Any such estimates and assumptions may change as new information 
          becomes available. If, after expenditure is capitalised, information 
          becomes available suggesting that the recovery of the expenditure 
          is unlikely, the relevant capitalised amount is written off in 
          the income statement and in the period when the new information 
          becomes available. 
          Units of production (UOP) depreciation of oil and gas assets 
          (note 13) 
          Oil and gas properties are depreciated using the UOP method over 
          total proved development and undeveloped hydrocarbon reserves. 
          This results in a depreciation/amortisation charge proportional 
          to the depletion of the anticipated remaining production from 
          the field. 
          The life of each item, which is assessed at least annually, has 
          regard to both its physical life limitations and present assessments 
          of economically recoverable reserves of the field at which the 
          asset is located. These calculations require the use of estimates 
          and assumptions, including the amount of recoverable reserves 
          and estimates of future capital expenditure. The calculation 
          of the UOP rate of depreciation/amortisation will be impacted 
          to the extent that actual production in the future is different 
          from current forecast production based on total proved reserves, 
          or future capital expenditure estimates change. Changes to the 
          proved reserves could arise due to changes in the factors or 
          assumptions used in estimating reserves, including: 
           *    The effect on proved reserves of differences between 
                actual commodity prices and commodity price 
                assumptions 
 
 
           *    Unforeseen operational issues 
 
 
          Recoverability of oil and gas assets (note 14) 
          The Company assesses each asset or cash generating unit (CGU) 
          each reporting period to determine whether any indication of 
          impairment exists. Where an indicator of impairment exists, a 
          formal estimate of the recoverable amount is made, which is considered 
          to be the higher of the fair value less costs of disposal (VLCD) 
          and value in use (VIU). The assessments require the use of estimates 
          and assumptions such as long-term oil prices (considering current 
          and historical prices, price trends and related factors), discount 
          rates, operating costs, future capital requirements, decommissioning 
          costs, exploration potential reserves (see(a) Hydrocarbon reserves 
          and resource estimates above) and operating performance (which 
          includes production and sales volumes). These estimates and assumptions 
          are subject to risk and uncertainty. Therefore, there is possibility 
          that changes in circumstances will impact these projections, 
          which may impact the recoverable amount of assets and/or CGUs. 
          Decommissioning provisions (note 19) 
          There is uncertainty around the cost of decommissioning as cost 
          estimates can vary in response to many factors, including changes 
          to the relevant legal requirements, the emergence of new technology 
          or experience at other assets. The expected timing, work scope 
          and amount and currency mix of expenditure may also change. Therefore, 
          significant estimates and assumptions are made in determining 
          the provision for decommissioning. 
          The estimated decommissioning costs are reviewed annually by 
          an internal expert from the joint venture partner. Provision 
          for environmental clean-up and remediation costs is based on 
          current legal and contractual requirements, technology and management's 
          estimate of costs with reference to current price levels. Future 
          cost estimates are discounted to present value using a rate that 
          approximates the time value of money, which is currently 5.89%. 
          The discount rate is based on the average yield on Tanzanian 
          Government bonds for foreign currency loans of a duration of 
          more than 10 years. 
 
 
3    Critical accounting estimates and judgements 
 
     Recoverability of trade receivables (note 17) 
     The Company considers the recoverability of trade receivables 
      to be a key area of judgement. The Company considers trade receivables 
      to be credit impaired once there is evidence a loss has been 
      incurred. An expected credit loss is calculated on an annual 
      basis. The directors believe that the debtor is still recoverable 
      based on their knowledge of the market in Tanzania and historical 
      evidence of similar receivables being paid. The Directors have 
      recognised the asset as they believe they are still legally entitled 
      to receive it. The Tanzanian Government have a history of building 
      up receivables with other companies and billing them at a future 
      date. 
 
4   Operating Segments 
 
          Based on risks and returned, the directors consider that the primary 
           reporting format is by business segment. The directors consider 
           that there are two business segments: 
            *    Head office support from the UK 
 
 
            *    Segment assets for Canada relate to an investment in 
                 Corallian Energy 
 
 
            *    Discontinued operations on its investments in 
                 Tanzania 
 
                                       Continuing Operations             Discontinuing 
                                                                            Operations 
    2020                                    Canada        UK     Total        Tanzania     Total 
                                            GBP000    GBP000    GBP000          GBP000    GBP000 
    Revenue                                      -         -         -               -         - 
 Administrative expenses                         -   (3,323)   (3,323)               -   (3,323) 
 Interest income                                 -         -         -              18        18 
 Finance costs                                   -         -         -             (3)       (3) 
 Other gains and losses                          -         -         -           (810)     (810) 
    Other income                                 -         -         -               -         - 
 
 
 
 Profit/(Loss) from 
  operations 
  per reportable segment                         -   (3,323)   (3,323)           (795)   (4,118) 
 
 
 
 Additions to 
  non-current 
  assets                                         -         -         -             293       293 
 Reportable segment 
  assets                                       125     1,296     1,421          17,476    18,897 
 Reportable segment 
  liabilities                                    -       249       249             166       415 
 
 
 
4   Operating Segments 
 
    2019                                 Canada        UK     Total   Tanzania     Total 
                                         GBP000    GBP000    GBP000     GBP000    GBP000 
 Revenue                                      -         -         -         17        17 
 Administrative expenses                      -   (2,558)   (2,558)          -   (2,558) 
 Interest income                              -         -         -         55        55 
 Finance costs                                -         -         -       (12)      (12) 
 Other gains and losses                    (67)         4      (63)          -      (63) 
    Other income                              -         -         -          -         - 
 
 
 
 Profit/(Loss) from operations 
  per reportable segment                   (67)   (2,554)   (2,621)         60   (2,561) 
 
 
 
 Additions to non-current 
  assets                                      -         -         -        337       337 
 Reportable segment assets                  125     2,168     2,293     18,585    20,878 
 Reportable segment liabilities               -       549       549        168       717 
 
5    Revenue 
 
                                                                2020                2019 
                                                              GBP000              GBP000 
     Other significant revenue 
     Interest income                                              18                  55 
 
 
 
                                                                2020                2019 
     Contract balances 
                                                                2020                2019 
                                                              GBP000              GBP000 
 
     Trade receivables                                           272                 283 
     Accrued income and interest                                  90                  76 
 
     Trade receivables accrued interest for non-payment. Outstanding 
      debtors accrue interest at a rate in accordance with the joint 
      venture agreement and are generally on terms of 30 days. In 
      2020, there is a provision of GBP55k (2019: GBP28k) for expected 
      credit losses on trade receivables. 
      Interest income relates to interest charged on outstanding 
      invoices. 
      An operating segment is a distinguishable component of the 
      Company that engages in business activities from which it may 
      earn revenues and incur expenses, whose operating results are 
      regularly reviewed by the Company's chief operating decision 
      maker to make decisions about the allocation of resources and 
      assessment of performance and about which discrete financial 
      information is available. 
 
 
 
6   Expenses by Nature 
                                                                         2020     2019 
    Continuing Operations                                              GBP000   GBP000 
 
 Exchange losses                                                           68       65 
 Fees payable to the Company's auditor for the 
  audit of the Company's financial statements                              36       23 
 Professional, legal and consulting fees                                  617      855 
 AIM related costs including investor relations                           136      246 
 Costs relating to OneDYAS transaction                                    640      653 
 Accounting related services                                              114      196 
 Travel and subsistence                                                    17       85 
 Office and administrative expenses                                        47       46 
 Other expenses                                                            72       19 
 Impairment losses                                                      1,384        - 
 Share-based payments                                                     335        - 
 Directors remuneration                                                 (206)      299 
 Wages and salaries and other related costs                                63       71 
 
 
 
                                                                        3,323    2,558 
 
 
 
7   Employees 
 
    The average number of employees (excluding executive directors) 
     was nil (2019: nil). 
     During the year ended 31 December 2020 the Directors opted to 
     receive remuneration in the form of share options in lieu of 
     fees (note 22). 
 
    There was one employee during the year ended 31 December 2019 
     who resigned in March 2019. 
 
                                                                         2020     2019 
                                                                       GBP000   GBP000 
    Their aggregate remuneration comprised: 
 Wages and salaries                                                         -        8 
 
 
 
 Directors remuneration                                                 (206)      299 
 
 
 
 
 
7   Employees 
 
                                                  Salary and   Share-based   Termination    Total 
                                                        fees      payments      payments 
                                                      GBP000        GBP000        GBP000   GBP000 
    Year ended 31 December 2020 
 Jonathan Fitzpatrick                                      6            67             -       73 
 Alastair Ferguson                                      (44)           143             -       99 
 Tom Reynolds                                             16            57             -       73 
 Donald Nicolson                                           6            57             -       63 
 Don Strang (resigned 26 November 
  2018)                                                  (6)             -             -        (6) 
 Dan Maling (resigned 7 February 
  2019)                                                (184)             -             -      (184) 
 Doug Rycroft (senior management)                          -            13                     13 
 
 
 
                                                       (206)           335             -      129 
 
 
 
                                                  Salary and   Share-based   Termination    Total 
                                                        fees      payments      payments 
                                                      GBP000        GBP000        GBP000   GBP000 
    Year ended 31 December 2019 
 Dan Maling (resigned 7 February 
  2019)                                                   38             -             -       38 
 Jonathan Fitzpatrick                                     62             -             -       62 
 Alastair Ferguson                                       134             -             -      134 
 Tom Reynolds                                             52             -             -       52 
 Donald Nicolson (appointed 
  11 November 2019)                                        8             -             -        8 
 Don Strang (resigned 26 November 
  2018)                                                    5             -             -        5 
 
 
 
                                                         299             -             -      299 
 
 
 
    No directors received pension contributions in 2020 or 2019. 
 
8   Other gains and losses 
                                                                       2020                  2019 
                                                                     GBP000                GBP000 
 
 Loss on disposal of shares in Deloro Energy                              -                    (67) 
 Loss on disposal of UKOG Shares                                          -                   (236) 
 Gain on disposal of UKOG PEDL 331                                        -                   240 
 
 
 
                                                                          -                    (63) 
 
 
 
 
 
9   Income tax expense 
                                                                                 2020      2019 
                                                                               GBP000    GBP000 
 
    UK corporation tax on profits for the current 
     period                                                                         -         - 
 
 
 
    Total UK current tax                                                            -         - 
 
 
 
    Deferred tax 
    Origination and reversal of temporary differences                               -         - 
 
 
 
                                                                                    -         - 
 
 
 
    Total tax charge                                                                -         - 
 
 
 
    The charge for the year can be reconciled to the loss per the 
     income statement as follows: 
 
                                                                                 2020      2019 
                                                                               GBP000    GBP000 
 
 Loss before taxation                                                         (4,119)     (2,561) 
 
 
 
    The reason for the difference between the actual tax charge for 
     the year and the standard rate of corporation tax in the UK applied 
     to profits for the year are as follows: 
 
 Expected tax credit based on a corporation tax 
  rate of 19.00% (2019: 19.00%)                                                 (783)       (487) 
 Effect of expenses not deductible in determining 
  taxable profit                                                                  442       201 
 Income not taxable                                                               (2)         - 
 Other non-reversing timing differences                                          (14)         - 
 Deferred tax not recognised                                                      596       256 
 Adjust deferred tax to average rate of 19.00%                                      -        30 
 Remeasurement of deferred tax for changes in 
  tax rates                                                                     (239)         - 
 
 
 
 Taxation charge for the year                                                       -         - 
 
 
 
 No deferred tax asset has been recognised because there is uncertainty 
  of the timing of suitable future profits against which they can 
  be recovered. The company has losses carried forward of GBP5,162k 
  (2019: GBP2,347k). 
 
 
 
10   Discontinued operations 
 
     The Company has a 25% interest in a high-quality development 
      project in Tanzania which the Directors are actively seeking 
      to monetise. This stake has been valued at $20m and operations 
      relating to this stake are detailed below. 
 
     The results of the discontinued business, which have been included 
      in the income statement, balance sheet and cash flow statement, 
      were as follows: 
 
                                                                               2020       2019 
                                                                             GBP000     GBP000 
 
 Revenue                                                                          -         17 
 Impairment on fair value revaluation                                         (810)          - 
 Investment revenues                                                             18         55 
 Finance costs                                                                  (3)         (12) 
 
 
 
 (Loss)/profit before taxation                                                (795)         60 
 
 
 
 Net (loss)/profit attributable to discontinuation                            (795)         60 
 
 
 
     The loss after tax on disposal of the assets held for 
      sale is made up as follows: 
                                                                                        GBP000 
 
 Fair value less costs to sell                                                          14,637 
 
     Net book value of assets disposed: 
 Intangible assets                                                                      (15,259) 
 Oil and gas properties                                                                    (354) 
 Decommissioning provision                                                                 166 
 
 
 
                                                                                        (15,447) 
 
 
 
 Impairment on fair value revaluation                                                      (810) 
 
 
 
     Loss per share impact from discontinued 
      operations 
                                                                               2020       2019 
 
 Basic and diluted impact (pence)                                            (0.11)       0.01 
 
 
 
     Cash flow statement 
                                                                               2020       2019 
                                                                             GBP000     GBP000 
 
 Net cash flows from investing 
  activities                                                                  (237)        (147) 
 
 
 
 Net cash flows from discontinued 
  operations                                                                  (237)        (147) 
 
 
 
 
 
11   Earnings per share 
 
     The calculation of loss per share is based on the loss after taxation 
      divided by the weighted average number of shares in issue during 
      the year. 
 
                                                                                     2020      2019 
     Number of shares 
 Weighted average number of ordinary shares for 
  basic loss per share (000)                                                      723,950   631,704 
 
     Earnings                                                                      GBP000    GBP000 
     Continuing operations 
 Loss for the period from continued operations                                    (3,323)      (2,621) 
 
 
 
     Discontinued operations 
 (Loss)/profit for the period from discontinued 
  operations                                                                        (795)        60 
 
 
 
     Basic and diluted earnings per share 
 From continuing operations (pence per share)                                      (0.46)       (0.42) 
 From discontinued operations (pence per share)                                    (0.11)      0.01 
 
 
 
                                                                                   (0.57)       (0.41) 
 
 
 
 As inclusion of the potential ordinary shares would result in 
  a decrease in the loss per share they are considered to be anti-dilutive, 
  as such, a diluted loss per share is not included. 
 
 
 
12   Intangible assets 
                                                                                  Exploration and 
                                                                           evaluation expenditure 
                                                                                           GBP000 
     Cost 
 At 1 January 2019 (as restated)                                                           17,652 
 Additions                                                                                    237 
 Disposals                                                                                    (264) 
 
 
 
 At 1 January 2020 (as restated)                                                           17,625 
 Additions                                                                                    293 
 Disposals                                                                                  (2,658) 
 Transfer to held for sale                                                                 (15,260) 
 
 
 
     At 31 December 2020                                                                        - 
 
 
 
     Impairment 
 At 1 January 2018 and 2019                                                                 2,658 
 Eliminated on disposals                                                                    (2,658) 
 
 
 
     At 31 December 2020                                                                        - 
 
 
 
     Carrying amount 
     At 31 December 2020                                                                        - 
 
 
 
 At 31 December 2019                                                                       14,967 
 
 
 
 The additions to deferred exploration and evaluation expenditure 
  during the period relate to the completion of drilling operations 
  for the Ntorya-2 appraisal and subsequent testing of the well. 
  During the year to 31 December 2020 the interest in Ausable Reef 
  was fully disposed for nominal consideration and no gain or loss 
  was recognised because the asset was fully impaired at the date 
  of disposal. 
  All the date of authorisation of these financial statements the 
  Directors were actively seeking sale of all Tanzanian intangible 
  assets and the assets were reclassified as held for sale at 31 
  December 2020 (note 16). 
  Following a review of the carrying value and future prospects 
  for Scirocco's assets no impairment has been recognised as the 
  carrying value is deemed appropriate based on the future outlook 
  and therefore all intangible assets are considered to have an 
  indefinite useful life. 
 
 
 
13    Oil & Gas properties 
                                                                                  2020     2019 
                                                                                GBP000   GBP000 
      Cost 
      At 1 January 2020                                                          1,117    1,124 
      Transfers to held for sale                                               (1,114)        - 
      Foreign exchange                                                             (3)        (7) 
 
 
 
      At 31 December 2020                                                            -    1,117 
 
 
 
      Accumulated depreciation 
      At 1 January 2020                                                            759      759 
      Transfers to held for sale                                                 (759)        - 
 
 
 
      At 31 December 2020                                                            -      759 
 
 
 
      Carrying value 
      At 31 December                                                                 -      358 
 
 
 
      The Oil & Gas properties comprise the 8.29% participating interest 
       in the Kiliwani North Development Licence, in Tanzania. 
       Accumulated amortisation has been calculated on a units of production 
       basis. As there was no production during 2020, the amortisation 
       charge for the year is nil (2019: GBPnil). 
       All the date of authorisation of these financial statements the 
       Directors were actively seeking sale of all Tanzanian oil and 
       gas properties and the assets were reclassified as held for sale 
       at 31 December 2020 (note 16). 
 
14   Investments 
 
     Quoted Equity Investments 
                                                                                         GBP000 
     Cost 
 At 31 December 2019 and 2020                                                             2,927 
 
 
 
     Impairment 
     At 31 December 2019                                                                      - 
 Charge in the period                                                                     1,385 
 
 
 
 At 31 December 2020                                                                      1,385 
 
 
 
     Net book value 
 At 31 December 2020                                                                      1,542 
 At 31 December 2019                                                                      2,927 
 
 
 
 The quoted investments in the current year relate to an equity 
  investment held in Helium One Ltd, a company incorporated in 
  the British Virgin Islands. Their subsidiaries hold helium mining 
  licences across Tanzania. The investment was unquoted in the 
  year to 31 December 2019 following which Helium One subsequently 
  listed on the London Stock Exchange on 4 December 2020 for 4.25p 
  per share and the shares held have been valued at the mark-to-market 
  value of 7.25p per share at 31 December 2020. 
 
 
 
14   Investments 
 
     Unquoted Equity Investments 
                                                                                       GBP000 
     Cost 
 At 31 December 2019 (as restated) and 2020                                               125 
 
 
 
     Impairment 
     At 31 December 2019 (as restated) and 2020                                             - 
 
 
 
     Net book value 
 At 31 December 2019 (as restated) and 2020                                               125 
 
 
 
     The unquoted investments in the current year relate to an equity 
      investment held in Corallian Energy Limited, a company incorporated 
      in England. The Company holds interests in oil and gas basins 
      in the United Kingdom. 
 
 Total investments at 31 December 2020                                                  1,667 
 
 
 
15   Subsidiary company 
 
     The only subsidiary of Scirocco Energy Plc is Scirocco Energy 
      International Limited a wholly-owned, UK incorporated micro-entity, 
      which is dormant, and has been since incorporation with an issued 
      share capital of GBP1. The registered office of the subsidiary 
      is 1 Park Row, Leeds, United Kingdom, LS1 5AB. 
      The Company has taken advantage of the exemption under the Companies 
      Act 2006 s405 not to consolidate this subsidiary as it has been 
      dormant from the date of incorporation and is not material for 
      the point of giving a true and fair view. 
 
16    Assets and liabilities classified as held for 
       sale 
                                                                                2020     2019 
                                                                              GBP000   GBP000 
 
      Intangible assets                                                       14,449        - 
      Oil and gas properties                                                     354        - 
 
 
 
      Total assets classified as held for sale                                14,803        - 
 
 
 
      Decommissioning provision                                                  166        - 
 
 
 
      Total liabilities classified as held for sale                              166        - 
 
 
 
      At the date of authorisation of the financial statements, the 
       Directors were actively seeking a sale of the above items within 
       the next 12 months (see note 10). 
 
 
 
17   Trade and other receivables 
 
                                                                                2020     2019 
                                                                              GBP000   GBP000 
 
 Trade receivables                                                               273      283 
 Provision for bad and doubtful debts (note 23)                                 (55)        (28) 
 
 
 
                                                                                 218      255 
 
 Other receivables                                                                 -      774 
 VAT recoverable                                                                  16      122 
 Loan to Helium One Ltd                                                           73       76 
 Prepayments                                                                     114      210 
 
 
 
                                                                                 421    1,437 
 
 
 
     The directors consider that the carrying amount of trade and 
      other receivables approximates to their fair value. 
      On 1 March 2019 the Company subscribed to USD $1,000,000 convertible 
      loan notes from Helium One Limited for USD $100,000. In accordance 
      with the terms of the agreement, a redemption note can be issued 
      with five days notice. This currently has a carrying value of 
      GBP73,000 (2019: GBP76,000). 
 
18   Trade and other payables 
                                                                                2020     2019 
                                                                              GBP000   GBP000 
 
 Trade payables                                                                  152      193 
 Accruals                                                                         57      167 
 Social security and other taxation                                                5        - 
 Other payables                                                                   34        5 
 
 
 
                                                                                 248      365 
 
 
 
     The directors consider that the carrying amount of trade payables 
      approximates to their fair value. 
 
19   Provisions for liabilities 
                                                                                2020     2019 
                                                                              GBP000   GBP000 
 
 PAYE Settlement                                                                   -      184 
 Decommissioning Provision                                                         -      168 
 
 
 
                                                                                   -      352 
 
 
 
 
 
19    Provisions for liabilities 
 
      Analysis of provisions 
      Provisions are classified based on the amounts that are expected 
       to be settled within the next 12 months and after more than 12 
       months from the reporting date, as follows: 
 
      Current liabilities                                                         -      184 
      Non-current liabilities                                                     -      168 
 
 
 
                                                                                  -      352 
 
 
 
      Movements on provisions:                    PAYE Settlement   Decom Provision    Total 
                                                           GBP000            GBP000   GBP000 
 
      At 1 January 2020                                       184               168      352 
      Unwinding of discount                                     -                 3        3 
      Exchange difference                                       -               (5)      (5) 
      Reclassification to liabilities 
       associated 
       with assets held for sale                                -             (166)    (166) 
      Release of share-settlement estimate                  (184)                 -    (184) 
 
 
 
      At 31 December 2020                                       -                 -        - 
 
 
 
      The PAYE settlement provision held at 31 December 2019 relates 
       to the amounts owed by Daniel Maling, former Managing Director, 
       for the PAYE on the share-settled transactions. This claim was 
       settled during the year to 31 December 2020 and the related provision 
       released. 
       The provision for decommissioning held at 31 December 2019 relates 
       to wells in Tanzania. The provision has been calculated assuming 
       industry established oilfield decommissioning techniques and 
       technology at current prices which are discounted at 5.89% per 
       annum. The wells in Tanzania relate to the Kiliwani North Development 
       Licence in Tanzania which has subsequently been classified as 
       held for sale and as such, the related decommissioning provision 
       has been reclassified. 
 
20   Share capital 
                                                  Number of shares             Nominal value 
 
                                                                                      GBP000 
a)   Called up, allotted, issued and fully paid: Ordinary shares of 0.2 
      p each 
 
 As at 31 December 2019                                631,704,118                     1,264 
 
 
 
 2 July 2020 - placing for cash at 0.02p                15,805,681                        32 
 20 October 2020 - placing for cash at 
  0.02p                                                 40,604,191                        81 
 20 October 2020 - placing for cash at 
  0.02p                                                 35,835,585                        72 
 
 
 
 At 31 December 2020                                   723,949,575                     1,448 
 
 
 
 
 
20   Share capital 
 
                                                                                  2020               2019 
                                                                                GBP000             GBP000 
b)   Deferred shares 
     Deferred shares of 265,324,634 at 0.69 
      pence each                                                                 1,831              1,831 
 
 
 
c)   Total Share options in issue 
     During the year no options were granted (2019: nil). 
 
     As at 31 December 2020, the unexercised options in issue were restated 
      as: 
 
     Exercise Price              Amended        Expiry Date                    Amended   Original Options 
     (original)                                                                                  in Issue 
                                                                                         31 December 2020 
     0.5p                        10p            31 December 2020            10,200,000        204,000,000 
     0.5p                        10p            31 December 2020             3,425,000         68,500,000 
     0.3p                        6p             31 December 2020             5,000,000        100,000,000 
     0.35p                       7p             31 October 2021              7,375,000        212,500,000 
 
 
 
                                                                            26,000,000        585,000,000 
 
 
 
d)   Total warrants in issue 
     No warrants lapsed in the year and no warrants were issued, cancelled 
      or exercised during the year (2019: nil). 
 
     As at 31 December 2020 there were nil outstanding (31 December 2019: 
      3,547,129 at 2.25p). 
 
21   Share premium account 
                                                                                  2020               2019 
                                                                                GBP000             GBP000 
 
     At beginning of year                                                       37,316             37,316 
     Issue of new shares                                                         1,083                  - 
 
 
 
     At end of year                                                             38,399             37,316 
 
 
 
 
 
22   Share based payment 
 
     The Company has opted to remunerate the directors for the year 
      to 31 December 2020 by a grant of an option over the ordinary 
      shares of the capital of the Company as detailed in the deed of 
      option grants. The life of the options is 18 months, which was 
      1 January 2020. There are three executive directors and one non-executive 
      director who are members of the plan. The following table summarises 
      the expense recognised in the Statement of Comprehensive Income 
      since the options were granted. 
 
                                                                                                 2020    2019 
                                                                                               GBP000  GBP000 
 
 Directors options                                                                                236       - 
 Incentive options                                                                                 99       - 
 
 
 
 Credit to equity for equity-settled share-based 
  payments                                                                                        335       - 
 
 
 
     During June 2020 (and the height of the Covid-19 pandemic) the 
      Company sought to put in place a strategy that would help to conserve 
      the Company's cash position in the near term and also to maximise 
      alignment between the Board, Management Team and Shareholders. 
 
     Accordingly, the Company proposed to grant nominal cost options 
      over new Ordinary Shares of 0.2p (GBP0.0020) to Directors and 
      select members of the Management Team ("the Director Options"). 
      The Director Options were granted over a total of 8,990,039 Ordinary 
      Shares and have an aggregate value equal (on a net basis, after 
      deduction of the nominal exercise price per Ordinary Share) to 
      the fair value of salary and/or fees due to the relevant option 
      holders up to 31 May 2020. 
 
     Members of the Management Team were also awarded options over 
      Ordinary Shares with an exercise price of 1.3p (GBP0.013) ("the 
      Incentive Options"), which was approximately a 24% premium to 
      the closing midmarket price of the Company's Ordinary Shares on 
      26 June 2020. Each Incentive Option is ordinarily 
      exercisable on the 2nd anniversary of the grant date (being 30 
      June 2022), except in the event of specified corporate events 
      or, exceptionally, if the option holder leaves as a 'good leaver'. 
 
     The Company used the Black-Scholes model to determine the value 
      of the incentive options and the inputs. There were no share options 
      for the year ended 31 December 2019. The value of the options 
      and the inputs for the year ended 31 December 2020 were as follows: 
 
                                                                                             Issue 30 June 2020 
                                                                                              Incentive options 
 Share price at grant (pence)                                                                            1.09 
 Exercise price at grant (pence)                                                                         1.30 
 Expected volatility (%)                                                                                84.42 
 Expected life (years)                                                                                      6 
 Risk free rate (%)                                                                                      0.17 
 Expected dividends (pence)                                                                               nil 
 
 Expected volatility was determined by using the Company's share 
  price for the preceding 3 years. 
 
 The total share-based payment expense in the year for the Company 
  was GBP99,207 in relation to the issue of incentive options (2019: 
  GBPnil) and GBPnil finance charges in relation to warrants (2019: 
  GBPnil). 
 
 
 
22   Share based payment 
 
     The Incentive Options granted represent approximately 7.9% of 
      the Company's issued share capital (excluding warrants issued 
      to Prolific Basins LLC). The Board has retained additional headroom 
      for future Incentive Options as it recognises that the future 
      performance of the Company will be dependent on its ability to 
      retain the services of key executives. 
 
23   Financial instruments 
 
     Categories of financial instruments 
           The following table combines information about: 
             *    Classes of financial instruments based on their 
                  nature and characteristics; and 
 
 
             *    The carrying amounts of financial instruments. 
 
                                                                                        2020        2019 
                                                                                      GBP000      GBP000 
     Financial assets at amortised cost 
 Trade receivables                                                                       245         255 
 Other debtors                                                                             -         774 
 Prepayments and accrued 
  income                                                                                 114         210 
 Cash and cash equivalents                                                             1,168       1,064 
 
 
 
                                                                                       1,527       2,303 
 
 
 
                                                          Book Value  Fair Value  Book Value  Fair Value 
                                                                2020        2020        2019        2019 
                                                                                    Restated    Restated 
                                                              GBP000      GBP000      GBP000      GBP000 
     Financial assets at fair 
      value 
 Non-current Investment 
  - Helium One                                                 1,542       1,542       2,927       2,927 
 Non-current Investment 
  - Corallian Energy Limited                                     125         125         125         125 
 Current Loans - Helium 
  One                                                             73          73          76          76 
 
 
 
                                                               1,740       1,740       3,128       3,128 
 
 
 
                                                                                        2020        2018 
                                                                                      GBP000      GBP000 
     Financial liabilities at amortised 
      cost 
 Trade payables                                                                          152         193 
 Accruals and deferred 
  income                                                                                  57         167 
 
 
 
                                                                                         209         360 
 
 
 
 
 
23   Financial instruments 
 
           The table below analyses financial instruments carried at fair 
            value, by valuation method. 
            Fair values are categorised into different levels in a fair value 
            hierarchy based on the inputs used in the valuation techniques 
            as follows: 
             *    Level 1: quoted prices (unadjusted) in active markets 
                  for identical assets or liabilities. 
 
 
             *    Level 2: inputs other than quoted prices included in 
                  Level 1 that are observable for the asset or 
                  liability, either directly (i.e. as prices) or 
                  indirectly (i.e derived from prices). 
 
 
             *    Level 3: inputs for the asset or liability that are 
                  not based on observable market data (unobservable 
                  inputs). 
 
 
            The fair values for the Company's assets and liabilities are not 
            materially different from their carrying values in the financial 
            statements. 
            The following table presents the Company's financial assets that 
            are measured at fair value: 
 
                                                                    Level 1  Level 2  Level 3     Total 
                                                                     GBP000   GBP000   GBP000    GBP000 
 
 Non-current Investment 
  - Helium One                                                        1,542        -        -     1,542 
 Non-current Investment 
  - Corallian Energy Limited                                              -        -      125       125 
 Current Loans - Helium 
  One                                                                     -        -       73        73 
 
 
 
 Level 3 financial assets at 1 January 2020                                                       2,927 
 Transfer of level 3 financial assets to Level 1 on admission 
  to London Stock Exchange                                                                      (2,927) 
 
 
 
     Level 3 financial assets at 31 December 2020                                                     - 
 
 
 
     Level 1 financial assets at 1 January 2020                                                       - 
 Transfer of level 3 financial assets to Level 1 on admission 
  to London Stock Exchange                                                                        2,927 
 Impairment of Level 1 investments to mark-to-market value                                      (1,385) 
 
 
 
 Level 1 financial assets at 31 December 2020                                                     1,542 
 
 
 
 A transfer between levels of the fair value hierarchy is deemed 
  to occur when inputs for an asset or liability become observable 
  on market data. In the current year, Helium One was admitted to 
  the London Stock Exchange and inputs were subsequently observable 
  and therefore the asset was transferred to a Level 1 financial 
  asset (note 14). 
 
 The Company does not have any liabilities measured at fair value. 
  There have been no transfers in to or transfers out of fair value 
  hierarchy levels in the period. 
 
 
 
23  Financial instruments 
 
    Financial instruments 
     in level 1 
    The fair value of financial instruments traded in active markets 
     is based on quoted market prices at the reporting date. A market 
     is regarded as active if quoted prices are readily and regularly 
     available from an exchange, dealer, broker, industry group, pricing 
     service, or regulatory agency, and those prices represent actual 
     and regularly occurring market transactions on an arm's length 
     basis. The quoted market price used for financial assets held by 
     the Company is the current bid price. 
 
    Financial instruments in 
     level 2 
    The fair value of financial instruments that are not traded in 
     an active market is determined by using valuation techniques. These 
     valuation techniques maximise the use of observable market data 
     where it is available and rely as little as possible on entity 
     specific estimates. If all significant inputs required to fair 
     value an instrument are observable, the instrument is included 
     in level 2. No investments are valued using level 2 inputs in the 
     period. 
    Financial instruments 
     in level 3 
    If one or more of the significant inputs is not based on observable 
     market data, the instrument is included in Level 3. Following the 
     guidance of IFRS 9, these financial instruments have been assessed 
     to determine the fair value of the instrument. In their assessment, 
     the Directors have considered both external and internal indicators 
     to decide whether an impairment charge must be made or whether 
     there needs to be a fair value uplift on the instrument. Instruments 
     included in Level 3 comprise of convertible loan notes held with 
     Helium One. Details of this can be found at Note 17. 
 
    The carrying value of the Company's financial assets and liabilities 
     measured at amortised cost are approximately equal to their fair 
     value. 
 
          The Company is exposed through its operations to one or more of 
           the following financial risk: 
            *    Fair value or cash flow interest rate risk 
 
 
            *    Foreign currency risk 
 
 
            *    Liquidity risk 
 
 
            *    Credit risk 
 
 
            *    Market risk 
 
 
            *    Expected credit losses 
 
 
           Policy for managing these risks is set by the Board. The policy 
           for each of the above risks is described in more detail below. 
           Fair value and cashflow interest rate risk 
           Generally the Company has a policy of holding debt at a floating 
           rate. The directors will revisit the appropriateness of this policy 
           should the Company's operations change in size or nature. Operations 
           are not permitted to borrow long-term from external sources locally. 
 
    Foreign currency risk 
    Foreign exchange risk arises because the Company has operations 
     located in various parts of the world whose functional currency 
     is not the same as the functional currency in which the Company's 
     investments are operating. The Company's net assets are exposed 
     to currency risk giving rise to gains or losses on retranslation 
     into sterling. Only in exceptional circumstances will the Company 
     consider hedging its net investments in overseas operations as 
     generally it does not consider that the reduction in volatility 
     in net assets warrants the cash flow risk created from such hedging 
     techniques. 
 
 
 
23   Financial instruments 
 
     The Company's exposure to foreign currency risk at the end of the 
      reporting period is summarised below. All amounts are presented 
      in GBP equivalent. 
 
                                                                     2020     2020     2019     2019 
                                                                   GBP000   GBP000   GBP000   GBP000 
                                                                      USD      EUR      USD      EUR 
 Trade and other receivables                                          274        -      283      659 
 Cash and cash equivalents                                          1,006        -       94        - 
 Trade and other payables                                           (142)        -     (41)        - 
 Provisions                                                             -        -    (352)        - 
 
 
 
 Net exposure                                                       1,138        -     (16)      659 
 
 
 
     Sensitivity analysis 
     As shown in the table above, the Company is primarily exposed to 
      changes in the GBP:USD exchange rate through its cash balance held 
      in USD and trading balances and to changes in the GBP:EUR exchange 
      rate due to the deposit denominated in EUR. The table below shows 
      the impact in GBP on pre-tax profit and loss of a 10% increase/decrease 
      in the GBP to USD exchange rate, holding all other variables constant. 
      Also shown is the impact of a 10% increase/decrease in the GBP 
      to EUR exchange rate, being the other primary currency exposure. 
 
                                                                                       2020     2019 
                                                                                     GBP000   GBP000 
 GBP:USD exchange rate increases 10%                                                    126       11 
 GBP:USD exchange rate decreases 10%                                                  (154)     (13) 
 GBP: EUR exchange rate increases 10%                                                     -       60 
 GBP: EUR exchange rate decreases 10%                                                     -     (73) 
 
 
 
 Liquidity risk 
 The liquidity risk of each entity is managed centrally by the treasury 
  function. Each operation has a facility with treasury, the amount 
  of the facility being based on budgets. The budgets are set locally 
  and agreed by the board annually in advance, enabling the cash 
  requirements to be anticipated. Where facilities of entities need 
  to be increased, approval must be sought from the finance director. 
  Where the amount of the facility is above a certain level agreement 
  of the board is needed. 
 
 All surplus cash is held centrally to maximise the returns on deposits 
  through economies of scale. The type of cash instrument used and 
  its maturity date will depend on the forecast cash requirements. 
 
 
 
23   Financial instruments 
 
     The table below analyses the company's financial liabilities into 
      relevant maturity groupings based on their contractual maturities. 
      The amounts presented are the undiscounted cash flows. 
 
                                                         Less than  6 to 12 months     Between 1   Between 
                                                          6 months                   and 2 years   2 and 5 
                                                                                                     years 
                                                            GBP000          GBP000        GBP000    GBP000 
     31 December 2020 
 Trade and other payables                                      243               -             -         - 
     Provisions                                                  -               -             -         - 
 
 
 
 Total                                                         243               -             -         - 
 
 
 
     31 December 2019 
 Trade and other payables                                      365               -             -         - 
 Provisions                                                      -             184             -         - 
 
 
 
 Total                                                         365             184             -         - 
 
 
 
 Credit risk 
 The Company is mainly exposed to credit risk from credit sales. 
  It is Company policy, implemented locally, to access the credit 
  risk of new customers before entering contracts. Such credit ratings 
  are taken into account by local business practices. 
 
 The Company does not enter into complex derivatives to manage credit 
  risk, although in certain isolated cases may take steps to mitigate 
  such risks if it is sufficiently concentrated. 
 
 Market risk 
 As the Company is now investing in listed companies, the market 
  risk will be that of finding suitable investments for the Company 
  to invest in and the returns that those investments will return 
  given the markets that in which investments are made. 
 
 Expected credit losses 
 Allowances are recognised as required under the IFRS 9 impairment 
  model and continue to be carried until there are indicators that 
  there is no reasonable expectation of recovery. 
 
 For trade and other receivables which do not contain a significant 
  financing component, the Company applies the simplified approach. 
  This approach requires the allowance for expected credit losses 
  to be recognised at an amount equal to lifetime expected credit 
  losses. For other debt financial assets the Company applies the 
  general approach to providing for expected credit losses as prescribed 
  by IFRS 9, which permits for the recognition of an allowance for 
  the estimated expected loss resulting from default in the subsequent 
  12-month period. Exposure to credit loss is monitored on a continual 
  basis and, where material, the allowance for expected credit losses 
  is adjusted to reflect the risk of default during the lifetime 
  of the financial asset should a significant change in credit risk 
  be identified. 
 
 
 
23  Financial instruments 
 
    The majority of the Company's financial assets are expected to 
     have a low risk of default. A review of the historical occurrence 
     of credit losses indicates that credit losses are insignificant 
     due to the size of the Company's clients and the nature of the 
     services provided. The outlook for the oil and gas industry is 
     not expected to result in a significant change in the Company's 
     exposure to credit losses. As lifetime expected credit losses are 
     not expected to be significant the Company has opted not to adopt 
     the practical expedient available under IFRS 9 to utilise a provision 
     matrix for the recognition of lifetime expected credit losses on 
     trade receivables. Allowances are calculated on a case-by-case 
     basis based on the credit risk applicable to individual counterparties. 
    Exposure to credit risk is continually monitored in order to identify 
     financial assets which experience a significant change in credit 
     risk. In assessing for significant changes in credit risk the Company 
     makes use of operational simplifications permitted by IFRS 9. The 
     Company considers a financial asset to have low credit risk if 
     the asset has a low risk of default; the counterparty has a strong 
     capacity to meet its contractual cash flow obligations in the near 
     term; and no adverse changes in economic or business conditions 
     have been identified which in the longer term may, but will not 
     necessarily, reduce the ability of the counterparty to fulfil its 
     contractual cash flow obligations. Where a financial asset becomes 
     more than 30 days past its due date additional procedures are performed 
     to determine the reasons for non-payment in order to identify if 
     a change in the exposure to credit risk has occurred. 
 
    Should a significant change in the exposure to credit risk be identified 
     the allowance for expected credit losses is increased to reflect 
     the risk of expected default in the lifetime of the financial asset. 
     The Company continually monitors for indications that a financial 
     asset has become credit impaired with an allowance for credit impairment 
     recognised when the loss is incurred. Where a financial asset becomes 
     more than 90 days past its due date additional procedures are performed 
     to determine the reasons for non-payment in order to identify if 
     the asset has become credit impaired. 
 
    The Company considers an asset to be credit impaired once there 
     is evidence that a loss has been incurred. In addition to recognising 
     an allowance for expected credit loss, the Company monitors for 
     the occurrence of events that have a detrimental impact on the 
     recoverability of financial assets. Evidence of credit impairment 
     includes, but is not limited to, indications of significant financial 
     difficulty of the counterparty, a breach of contract or failure 
     to adhere to payment terms, bankruptcy or financial reorganisation 
     of a counterparty or the disappearance of an active market for 
     the financial asset. 
 
    A financial asset is only written off when there is no reasonable 
     expectation of recovery. 
 
    A provision matrix can be used based on historical data of default 
     rates adjusted for a forward looking estimate. The history of default 
     rates needs to be accessed in conjunction with the aging of the 
     trade receivable balance. The aging of a balance alone does not 
     require a provision but can be used as a structure to apply the 
     rates calculated. The historical default rates are used in accordance 
     with forward looking information. From a commercial perspective 
     the TPDC has continued to delay settlement of the trade receivables 
     balance based on requests from the TPDC to Aminex for payments 
     of certain amounts which they wish to offset against the trade 
     receivables. Until this issue is resolved there will be no payment 
     of the invoices and as such an ECL is required to be recognised. 
 
    In order to determine the amount of ECL to be recognised in the 
     financial statements, Scirocco is using a provision matrix based 
     on its historical observed default rates which is adjusted for 
     forward-looking estimates and establishes that ECL should be calculated 
     as: 
 
    Non-past due                             0.5% of carrying value 
    30 days past due                         2% of carrying value 
    31-60 past due                           4% of carrying value 
    61-90 past due                           6% of carrying value 
    90 days-3 years past due                 10% of carrying value 
    Over 3 years past due                    20% of carrying value 
 
 
23   Financial instruments 
 
     The simplified approach enables Scirocco to make an estimate of 
      ECL as they are unable to track the credit worthiness of customers. 
      The matrix above reflects the best estimate of the directors that 
      the claim by TPDC will be successful and is the lifetime credit 
      loss expected. 
 
     The total outstanding amount is GBP274k at 31 December 2020 which 
      is all over 3 years past due resulting in an ECL of GBP55k in the 
      current year. 
 
24   Related party transactions 
 
     The Company had the following amounts outstanding from its investee 
      companies (Note 17) at 31 December: 
 
                                                                                 2020     2019 
                                                                               GBP000   GBP000 
 
 Helium One opening balance                                                        76       78 
 Foreign exchange movement                                                        (3)      (2) 
 
 
 
 Balance at 31 December                                                            73       76 
 
 
 
     There were no transactions between the parent and its dormant 
      subsidiary, which are related parties, during the year. Details 
      of director's remuneration, being key personnel, are given in 
      Note 7. 
 
     The Company entered into transactions with the following related 
      parties who have common directors during the current year: 
 
                                                                                 2020     2019 
                                                                               GBP000   GBP000 
 NR Global Consulting Ltd - provision of management 
  services - common director Neil Ritson                                            -     (14) 
 Gneiss Energy Limited - provision of 
  corporate finance advisory - common 
  director Jonathan Fitzpatrick                                                   225      538 
 Quixote Advisors Ltd - provision of 
 management services - common director 
 Tom Reynolds                                                                      27       53 
 
25    Ultimate controlling party 
 
      In the opinion of the directors there is no controlling party. 
 
26   Commitments 
 
 As at 31 December 2020, the Company had no material commitments 
  (2019: GBPnil). 
 
27   Retirement benefit scheme 
 
 The Company operates only the basic pension plan required under 
  UK legislation, contributions thereto during the year amounted 
  to GBPnil (2019: GBPnil). 
 
 
 
28    Cash generated from operations 
                                                                   2020                      2019 
                                                                 GBP000                    GBP000 
 
      Loss for the year after tax for continuing 
       operations                                                           (3,323)         (2,621) 
      (Loss)/profit for the year after tax for 
       discontinuing 
       operations                                                             (795)            60 
 
      Adjustments for: 
      Finance costs                                                   3                        12 
      Loss on disposal of investments                                 -                       236 
      Impairment of investments                                   1,385                         - 
      Loss on fair value revaluation of assets 
       held 
       for sale                                                     810                         - 
      Equity settled share based payment expense                    335                         - 
      Decrease in provisions                                                  (352)             (3) 
 
      Movements in working capital: 
      Decrease in trade and other receivables                     1,011                       107 
      Increase/(decrease) in trade and 
       other 
       payables                                                      49                       (305) 
 
 
 
      Cash absorbed by operations                                             (877)         (2,514) 
 
 
 
29   Post balance sheet event 
 
     Sale of Tanzanian Assets 
      The Board announced on the 2nd of March that the most appropriate 
      course of action regarding Tanzanian assets is to run a formal 
      process to explore value realisation options for the assets including, 
      but not limited to, the sale of Scirocco's interests in the certain, 
      or all, of its Tanzanian assets. In particular, the Board is confident 
      in the inherent value of its 25% interest in the Ruvuma asset 
      and will consider reasonable offers that reflect the quality of 
      the asset and its significant upside potential. A formal dataroom 
      has been established and the formal process was begun in March. 
 
30    Prior period adjustment 
 
      Changes to the statement of financial position 
                                                               At 31 December 2019 
 
                                                           Previously    Adjustment   As restated 
                                                             reported 
                                                               GBP000        GBP000        GBP000 
      Fixed assets 
      Intangible assets                                        15,092         (125)        14,967 
      Investments                                               2,927           125         3,052 
      Net assets                                               18,724             -        18,724 
 
 
 
      Capital and reserves 
      Total equity                                             20,161             -        20,161 
 
 
 
 
 
30  Prior period adjustment 
 
    Notes to reconciliation 
 
    There has been a restatement to the 2019 accounts. The investment 
     in Corallian Energy Limited was incorrectly classified as an 
     intangible asset and has subsequently been reclassified as an 
     unquoted equity investment. 
 
    This restatement has no overall impact on the equity as reported 
     at 31 December 2019. 
 
 
COMPANY INFORMATION 
Directors          Alastair Ferguson (Chairman) 
                   Tom Reynolds (CEO) 
                   Jonathan Fitzpatrick 
                   Donald Nicolson 
                   Muir Miller (Joined February 2021) 
 
Senior management  Douglas Rycroft (COO) 
 
Secretary          John Alpine 
 
Registered office  1 Park Row 
                   Leeds 
                   United Kingdom 
                   LS1 5AB 
 
Website            www.sciroccoenergy.com 
 
Nominated advisor  Strand Hanson Ltd 
                   26 Mount Row 
                   Mayfair 
                   London 
                   W1K 3SQ 
 
Auditor            PKF Littlejohn LLP 
                   15 Westferry Circus 
                   London 
                   United Kingdom 
                   E14 4HD 
 
Broker             WH Ireland Limited 
                   24 Martin Lane 
                   London 
                   EC4R 0DR 
 
Solicitors         Pinsent Masons LLP 
                   141 Bothwell Street 
                   Glasgow 
                   G2 7EQ 
 

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June 14, 2021 02:01 ET (06:01 GMT)

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