Sirius Petroleum: Ororo Field Oil in Place Assessment Beats Expectations
Sirius Petroleum Plc, a company focused on oil and gas development and production opportunities in Nigeria, has announced that Schlumberger, the world’s largest petro-technical services company, has completed an independent Field Evaluation Study on the Ororo Field in OML 95 (“Ororo”) which confirms significant recoverable resources in the field that are higher than the Company’s original estimates.
Sirius also announces that it is to embark on the preliminary process for a re-entry on the Ororo-1 well.
Summary of Independent Assessment by Schlumberger
· Ororo Field hydrocarbon in place estimated at 35.2- 44.1 MMstb (P50 – P10 oil-in-place).
· Seven oil bearing sands (D1, D2, D3, D4, D5, F and G) were identified in Ororo-1 well.
· The P50 – P10 Recoverable Oil from the single Ororo-1 well estimated at 10.0 MMstb – 12.8 MMstb.
· The Ororo-1 well flow tested at a combined production rate of approximately 2,800 barrels of oil per day (bopd) from two oil producing sands.
· Ororo-1 well contains 125ft true vertical thickness (TVT) of net oil pay.
· The P50 – P10 Gas Initially In Place estimated at 396.5 – 557.6 Bscf with Recoverable Gas of 276.9 – 390.66 Bscf (P50 – P10).
· Ororo-1 well did not encounter any hydrocarbon water contact in any of the seven hydrocarbon bearing reservoirs which suggests that the contacts are located down dip of the Ororo structure.
· The combined results from the petro-physical analysis, seismic interpretation and volumetric studies shows the exploitation potential of the field is good.
Ororo Field Background
The Ororo Field is located within Oil Mining Lease (OML 95). It lies in shallow waters offshore Ondo State in water depths ranging between 23ft and 27 ft. The field is adjacent to Mina, West Isan, Ewan, Eko and Parabe fields – all of which are operated by Chevron.
The field was discovered in 1986 with the drilling of Ororo-1 well by Chevron, which penetrated 197 feet of hydrocarbons in twelve sandstone reservoirs at points close to the crest of each reservoir structure.
Initial Development Work on Ororo Field
Sirius has an economic interest of 40% and will now commence the initial development work on the field. This includes community relation initiatives with Owena Oil & Gas (the state government vehicle owned by Ondo State set up to hold interests in Ondo State’s oil and gas assets), and seeking approval from the Department of Petroleum Resources (DPR) for the permits to undertake the drilling activities, which compromises well tests and well completions for the re-entry of Ororo-1 well.
Issue of Equity
Further creditors have agreed to settle outstanding invoices via the issuance of 9,375,000 new Ordinary Shares at a price of 4 pence per share. Application for the admission of the new Ordinary Shares to trading on AIM (“Admission”) has been made and Admission is expected to occur on 16 December 2013. The new Ordinary Shares will represent 0.98 per cent. of the enlarged share capital and will rank equally in all respects with the existing ordinary shares. Following this issue, the total number of ordinary shares in issue will be 956,499,985. This number may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company.
Bobo Kuti, CEO, Sirius Petroleum said: “The Independent assessment of the oil in place in the first of our portfolio of assets to be exploited, the Ororo field, indicates a greater asset base than we had originally expected. The long awaited decision to proceed with this development is a major first step for the Company, from which it can build value for shareholders. Schlumberger has been involved in the project from the earliest stages of the Ororo Field and, due to the results from the Field Evaluation, we are now in discussions with Schlumberger to provide Project Management and Drilling Services to accelerate our development activities on this asset in order to get it to first oil. The partnerships with Schlumberger and Glencore, which has an off-take agreement in place with Sirius, demonstrate confidence in our asset portfolio and the strategy of the Company to acquire and exploit proven oil and gas assets.”
Press Release, December 10, 2013