22 Feb 2017 07:00
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.
22 February 2017
Sirius Petroleum Plc
(the "Company" or "Sirius ")
Equity placing raising £2 million
for equipment mobilisation deposits, and
cancellation of the Calvet Convertible Loan Facility
Sirius Petroleum (AIM: SRSP), the investing company focused on oil and gas exploration and development opportunities in Nigeria, announces 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 (the "Subscriptions" and the "Subscription Shares") to raise gross proceeds of £2 million. The Company has also agreed to issue to 3,333,333 new ordinary shares at 0.75 pence in settlement of fees ("Fee Shares").
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 commencement of the proposed drilling programme on the Ororo field in conjunction with the Company's Project Consortium partners; COSL Pan Pacific Drilling, Add Energy, and Schlumberger.
The Company has agreed the cancellation of the remaining Convertible Loan Facility ("Loan") with Calvet International Limited, a family investment office, which currently has an undrawn amount of £630,000. Under the terms of the Loan, Calvet may at their discretion deliver any undrawn amount of the Loan to the Company and convert any outstanding amounts due to them, plus the drawdawn fee, into Sirius ordinary shares. This could have had the effect of the issue of 126 million new ordinary shares being issued at 0.5p per share. The Company has agreed with Calvet for the cancellation of the Loan by way of a payment of £500,000 which has the result of reducing dilution by 59.3 million shares.
Application has been made for the Subscription Shares and the Fee Shares to be admitted to trading on AIM, which is expected to occur on, or around, 27 February 2017, subject to receipt of the Subscription proceeds. Following the issue of the Subscription Shares, the Company will have 2,528,029,522 ordinary shares of 0.25 pence each in issue. No ordinary shares are held in treasury. The figure of 2,528,029,522 may be used by the Company's shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.
Bobo Kuti, CEO of Sirius, commented:
"We are advancing into the pre-drilling programme of activity and hence the requirement for the funds to support the mobilisation 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."
Enquiries:
Sirius Petroleum +44 20 3740 7640
Bobo Kuti / Jack Pryde
Cantor Fitzgerald Europe +44 20 7894 7000
Sarah Wharry / Craig Francis
Gable Communications +44 20 7193 7463
John Bick srsp@gablecommunications.com
The person making this notification on behalf of Sirius Petroleum plc is Olukayode (Bobo) Kuti, the Chief Executive Officer and Director of the Company.