9 Oct 2009 07:00
9 October 2009
Sirius Petroleum plc
("Sirius" or the "Company")
Update - Refined Products Import Licence, Nigeria
The Board of Sirius (AIM: SRSP) is pleased to announce that it has been granted a licence from the Department of Petroleum Resources ("DPR") of the Nigerian Ministry of Petroleum Resources to import refined oil products into Nigeria ("Import Licence").
The Import Licence is granted with effect from 30 September 2009 and permits the Company, through its subsidiary Sirius Taglient Petro Limited, to import up to 10,000 metric tonnes per shipment of petroleum oil product and is renewed on a quarterly basis for a nominal fee.
The Company first announced its intention to seek opportunities in the natural resources and mining sector in its 2008 Interim Results and this strategy was refined to the oil and gas sector in June 2008. Under The AIM Rules for Companies (the "AIM Rules"), the Company is obliged to complete a reverse takeover transaction or otherwise implement its strategy by 4 March 2010 in order to retain its admission to trading on AIM. The Import Licence will enable the Company to commence trading in refined oil products in Nigeria with a view to generating significant revenues within the AIM timetable thereby, going forward, satisfying the AIM Rules' requirements.
Whilst Nigeria is a net producer of crude oil products, its domestic refining capabilities are insufficient to meet the needs of its near 150 million residents. Accordingly, Nigeria exports the majority of its oil production and imports the majority of its refined oil product requirement. The directors believe that this situation provides a significant market opportunity for both oil product import and export operators.
Whilst the oil product import activities will provide the Company with a significant business opportunity, it nevertheless remains the strategy of the Board to acquire and develop a number of marginal oil field projects. The Company's oil product trading activities will not defer or delay the work on securing such marginal field opportunities and, as previously announced, the Board remains confident that the first such field will be secured during the latter part of 2009 or early 2010.
Commenting on this development, Chairman of Sirius Petroleum, Mr Agboola, said:
"We are pleased to be in a position where we can commence trading activities with a view to producing positive revenues and cash flows whilst continuing to review potential marginal field opportunities."
Ends
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