8 Oct 2018 07:00
8 October 2018
Sirius Petroleum Plc
("Sirius" or "the Company")
Sirius secures In-Country Rig for Ororo Field
Sirius Petroleum (AIM: SRSP), the Nigeria-focused oil and gas development and production company, announces that it has decided, by mutual agreement with COSL, to abrogate its agreement with COSL for the supply of a jack-up rig for the drilling programme on the Ororo field, OML 95.
Sirius has sourced and signed an agreement with Shelf Drilling Limited ("Shelf") to supply its Adriatic I jack-up rig which is scheduled to become available during November and is in close proximity to the Ororo field. The Company's operational budget for the Ororo drilling programme as disclosed in the Company's admission document published on 30 November 2017 remains unchanged. The proposed rig is fully certified, currently concluding a well campaign with another operator utilising Schlumberger services and equipment on board the Adriatic I, and meets the specifications required for the Company's proposed drilling programme at Ororo-2 and Ororo-3. As previously announced, the Company and its operational partners, Schlumberger and Add Energy intend to achieve the spudding of Ororo-2 at the earliest possible time during Q4 2018.
Bobo Kuti, CEO of Sirius Petroleum plc, said:
"We are delighted to have sourced a drilling rig which is currently on station in the Niger Delta and is ahead of schedule on its current drilling programme, hence has become available. It meets our technical criteria for the Ororo field drilling programme and we look forward to working with our operational partners Schlumberger and Add Energy on commencing the Ororo drilling programme."
Enquiries:
Sirius Petroleum +44 20 3740 7640
Bobo Kuti, Chief Executive
Mark Henderson, Chief Financial Officer
Cantor Fitzgerald Europe +44 20 7894 7000
David Porter/Nick Tulloch
Gable Communications +44 20 7193 7463
John Bick srsp@gablecommunications.com
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.
About Sirius Petroleum
The Company's strategy is to target proven opportunities and maximize hydrocarbon production and recovery through the acquisition of discovered assets in Nigeria, with a particular focus on shallow offshore areas and the realisation of upside potential through appraisal activities.
Sirius's initial focus is the Ororo field, which was originally operated by Chevron in 1986. Chevron drilled Ororo-1 and hydrocarbons were discovered in seven sandstone reservoirs (D1 to D5, F and G). Four of the reservoirs in the original Ororo-1 well were tested, two produced oil (D3 and G) at a combined rate of 2,800 bopd and two produced gas condensate (D4 and D5).
The Ororo field is located within OML 95 in the Niger Delta, offshore Nigeria, in the western part of the prolific Niger Delta petroleum system. It lies in shallow waters offshore Ondo State in water depths ranging between 23ft and 27ft. The field is adjacent to the Mina, West Isan, Ewan, Eko and Parabe fields, all of which are operated by Chevron.
Sirius has a 40% economic interest under a Financial & Technical Service Agreement and entered into a Joint Operating Agreement in August 2017 with its indigenous partners Owena Oil & Gas (100% Owena State owned entity) and Guarantee Petroleum, who own 27% and 33% respectively. According to the Ororo CPR, the mid-case gross recoverable 2C contingent resources are 24mmboe as defined by the Society of Petroleum Engineers - Petroleum Resources Management System.