Petroleum Africa
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Friday, October 17, 2014
Sirius Petroleum has provisionally raised approximately $20 million by way of a placing and subscription and is currently looking to raise more. The company’s board is seeking to raise a further $5. 1 million in order to put the Ororo field in Nigeria into production.
A long stop date of November 7 is set for the placing and subscription and the further funding may or may not be concluded by that date. In addition to these ongoing discussions, the company is exploring an alternative re-entry scenario into the Ororo field, which may reduce the overall capex and impact the further funding required.
The company said that in an effort to strengthen its technical capabilities and, as part of the concluding of the funding, it is forming a technical advisory committee (TAC) to assist in advising on the technical aspects of its operations. The TAC will comprise a team of experts from the industry who will actively advise the Sirius on the optimum development of its assets.
While the initial focus is on the drilling of the Ororo field, the TAC will also advise Sirius on the technical aspects of the acquisition and development of further assets in Nigeria. The responsibilities of the TAC include monitoring geological and geophysical interpretation, acquisition and development planning, economic modelling studies and engineering activities.
Towards its goal the company has agreed entered into a Heads of Terms with Havoc Partners to become a technical adviser to the company and under which Havoc will appoint Jon Taylor and Alan Stein, founders and executive directors of Ophir Energy, to join the TAC. The company will immediately look to conclude a definitive agreement. In the meantime mutual due diligence has been carried out and the parties are working together on the technical development of the Ororo field.
Havoc is staffed by geoscientists and is equipped with the latest geological and geophysical software to enable the team to undertake technical and commercial evaluations and to develop and evaluate projects in-house. Post completion of funding, the Havoc mandate will be to assist in the drilling and subsequent production of the Ororo field.
Commenting, Jon Taylor, said: “We are delighted to work with Sirius on their opportunities in Nigeria. The Company is focused on selected marginal field developments and has access to strong potential deal flow. We look forward to collaborating with Sirius’s technical team in Lagos initially to put the Ororo field into production and then on subsequent projects.”
Commenting, Bobo Kuti, CEO of Sirius Petroleum, said: “I am delighted that Jon Taylor, Alan Stein and Havoc Partners have agreed to advise Sirius on its technical operations, taking an active role working in collaboration with Schlumberger and our Nigerian technical team. The breadth of experience this team brings will help Sirius to mitigate the technical risks associated with drilling the Ororo field, whilst advising us on our best strategy with regards to our pipeline of assets.”
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