Sirius Petroleum raising funds ahead of Ororo drilling

Sirius Petroleum is raising funds for equipment mobilization deposits for the upcoming drilling campaign at the Ororo field, offshore Nigeria. 

The Ororo field, discovered in 1986, is located within OML 95 in shallow waters offshore Ondo State. The field lies in water depths ranging between 23ft and 27 ft.

Guarantee Petroleum has a 55% participating equity interest in the Ororo field with Owena Oil & Gas as its partner holding the remaining 45% interest. Sirius Petroleum acts as the technical and financing partner in the development of the field.

After getting a three-year extension of the Ororo field license with effect from May 1, 2016, the joint venture partners also received an approval from the Nigerian Federal Ministry of Environment for the Environmental Impact Assessment Survey on the Ororo field, which covered the drilling of 3 wells and the installation of wellhead platforms.

Raising £2 million

Sirius, an investment company focused on oil & gas exploration and development opportunities in Nigeria, announced on Wednesday that firm commitments have been received from new and existing shareholders in respect of subscriptions, in aggregate, for 266,666,666 new ordinary shares at a price of 0.75 pence per ordinary share to raise gross proceeds of £2 million ($2.5M). Sirius has also agreed to issue to 3,333,333 new ordinary shares at 0.75 pence in settlement of fees.

According to the company, the net proceeds of the subscriptions will be used to pay the initial deposits on key equipment and long lead items – including wellheads, ‘christmas tree’ pipe and valve assemblies, and tubing hangers – ahead of the beginning of the proposed drilling program on the Ororo field in conjunction with the company’s project consortium partners; COSL Pan Pacific Drilling, Add Energy, and Schlumberger.

To remind, Sirius in November 2016 hired a jack-up drilling rig from China’s COSL Drilling and Add Energy for a well management contract for the Ororo drilling campaign. Furthermore, Schlumberger was hired in December for the provision of an integrated services management at the field off Nigeria. Drilling is expected to start in the first half of 2017.

Sirius added on Wednesday that, following the issue of the subscription shares, the company will have 2,528,029,522 ordinary shares of 0.25 pence each in issue.

Bobo Kuti, CEO of Sirius, commented: “We are advancing into the pre-drilling program of activity and hence the requirement for the funds to support the mobilization of key equipment and long lead items. We have been very pleased with the excellent support from existing and new shareholders in this oversubscribed placing.”

Offshore Energy Today Staff