Sirius Gains Extension on Funding & Prepares for Drilling Project Ororo-2

Source: 2/12/2015, Location: Africa

Sirius Petroleum, the investing company focused on oil and gas exploration and development opportunities in Nigeria, updates its shareholders on progress towards completion of the £9.6 million Convertible Loan with Nima International Ltd. (Nima), an affiliate company of Levant Energy Limited, as detailed in the Company’s announcement dated 18 December 2014.

The Company has been working closely with Nima to complete the outstanding items relating to the Loan. This work remains ongoing and the parties have therefore mutually agreed to extend the completion date from 16 February 2015 to 16 March 2015. Whilst the Directors remain confident of completing the agreement by this date, there can be no guarantee that this will occur.

Operational Update

The Company has re-appraised the Ororo Field economics in light of current oil prices. The Directors believe there remains significant value to shareholders in developing the asset and bringing the Ororo Field into production. Oil service and rig costs in Nigeria have reduced significantly along with prices, which will mean a lower cost to first oil for Sirius.

Preparations for drilling the Ororo-2 development well continue in parallel with the finalisation of the funding process. The Company in association with its geoscience advisors Havoc Partners are reviewing the basis of well design report that has been prepared by Sirius’ drilling team.

The long-lead items required for the drilling of the Ororo-2 development well have all been identified and are either in-Country or in close proximity in West Africa, therefore, these items should not delay the intended drilling programme. Discussions have progressed with the rig provider and a number of integrated service providers to ensure the contracting and procurement process for Ororo-2 is ready to be initiated upon completion of the funding.

The Department of Petroleum Resources (DPR) recently confirmed that they will be reviewing the non-performing marginal field assets in Nigeria in March 2015. They confirmed that they would review a number of criteria for non-performance of assets, including but not limited to, proposing a field development plan and showing access to funding. Sirius attended the stakeholders’ summit organized by the DPR and will continue to work closely with the DPR and Sirius’s local partners to satisfy the intention of the Marginal Fields Policy, including all license obligations. The timetable for satisfying the DPR’s criteria is uncertain and there can be no guarantees of satisfying all criteria.

Commenting, Nima International Ltd., said “We look forward to continuing to work with Sirius with the aim of concluding this transaction and investment in the Nigerian Oil and Gas industry”.

Commenting, Bobo Kuti, CEO, Sirius Petroleum, said “We are very grateful to shareholders for their continued patience and are working closely with Nima and the Equity providers, who remain fully committed, to conclude the funding. We believe that the project remains highly profitable, even in light of the overall economic conditions in the oil sector.”

For more information about related Opportunities and Key Players visit West Africa Projects

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