Sirius Petroleum Share Discussion Threads

[euclid5] 04/7/2015 10:59

where do you get 7BBn from ?

the main prize is the 7bbn OPL241, much of which has been reclassified as 2P reserves

Guess this is not proven up yet - will be lots of exploration drilling & appraisal drilling to prove up 7BBN
_______________________________________________________________________________

"Block OPL 241

The Blackwood Group signed a Memorandum of Understanding with Oilworld to acquire 60% majority stake in OPL 241 Oil concession.

OPL 241 is located in the shallow waters of the Niger Delta Basin, Nigeria, at the end of 2005. The total concession area is 1,182 sqkm Estimated Oil & Gas Reserves are in the range of 1,8 billion barrels plus probable reserve in excess of 400 million barrels"

hxxp://www.blackwoodgrp.com/Oil_Gas.php

[dr rosso] 04/7/2015 10:38

Funding at project level ie through the 3 subsidiaries. Nice to see OPL2012 back on the menu with its 1bbn contingent, but that one has had little work done on it so it`ll be on the backburner for development. Neither does Sirius, Havoc or Ophir have the capacity to develop it until significant revenue stream from their first 2 blocks.
Whilst Havoc field management team will kick off with Ororo, the main prize is the 7bbn OPL241, much of which has been reclassified as 2P reserves following PGS gathering seismic data. Once the full block has been analysed by Schlumberger, at $7pb, it takes on a NAV of a staggering $50bn. 40% of that to Sirius, with an option to increase to 60%.
Chuck in Ororo tie-ins and 2012, and NAV jumps to around $55bn at current state of play, with considerable upside for NewCo.
Present sub-1p share price gives mcap of £10m ($15m) based on 16mmboe (40% of 40mmboe), with none of the above factored in by the market. Upside NAV is $70bn compared with present $1bn. Would NewCo offer $2bn? Yes, I`d say so.
Divide by 2bn shares = $1.

[sherl0ck] 04/7/2015 10:18

Cammy - I personally don't see Havoc reversing into Sirius. H are broader than Sirius and were established to take an interest in multiple projects/assets. 100m warrants ensure a big eventual pay day for them. $191k is ultimately small change compared to this. The 'change of control' clause is perhaps an interesting one to throw in.

Sooner than later? From purely reading recent RNSs I get the sense that there is a crescendo of action with a lot of housekeeping and share shuffling conducted (the 2x former directors recently opting for shares as opposed to long overdue deferred salary is another big clue). Talk about farm-in, significant block and JV gives a welcome insight that (in my belief), we must be pretty close to a transformational deal and some long awaited asset revelations. I tie this all in with my own personal research and conclude that we certainly won't be a £10m mcap company for much longer!

[cammy3] 04/7/2015 10:08

Sherlock

Page 32 (c) Can you see Havoc reversing into Sirius and announcing a significant deal at the same time?

This leeks the most likely thus giving Stein and Taylor an Ophir Type Vehicle to do it all again.

I detect -

1. Suspension
2. Large deal secured3.
3. Havoc reverses in

Looking at the fine detail in the accounts it all points to some corporate action sooner than we think

[113mike] 04/7/2015 09:56

So what do peeps think what'll to SRSP & its sp?...is it basket case or does it have a future? and if yes, its good when will things happen?

[htrocka2] 04/7/2015 09:54

cheers Sherlock... nice one.

[sherl0ck] 04/7/2015 09:52

HT - here's a few other things I picked out of the 2014 annual report:

Page 11: mention that the Board will be increased with additional Director appointments when operations commence in Nigeria

Page 14: details current & former directors that are owed salaries. Since the 2014 year end T Haywood has received 15m shares for his $466k owing to him and G Porter 4.45m shares for his $138k. These shares were issued at a '50% discount' at 1p and demonstrate that even those no longer directly involved here still value cheap shares above money.

Page 28: Tax losses are now $30.5m and can be offset against future profits

Page 31: The Group intends investing further amounts into the Ororo Oil Field, as part of its strategic development plans. The costs of the capital and operating costs will be covered by either separate funding facilities or by financial and technical industry partners on a joint farm-in basis.

Page 32: Included in accruals is liability to Havoc Oil of $191,000 for technical services provided. Payment of this amount is deferred until:

a) the Company secures project funding for the next phase of Ororo field development or b) acquires an interest in a significant oil discovery offshore Nigeria or
c) accepts any proposal resulting in a change of control of the Company or
d) as may otherwise be mutually agreed between Havoc and Sirius.

Page 33: loans repaid in shares. As with previous years, working capital loans of $2.42m have attracted significant fees of $2.146m and because they weren't repaid on time (?!), a default fee of $455k

Page 36: Warrants - this only shows those with respect to year ending 31/12/14 and as such the figure of 1,003,500,000 still includes the 900m strand/Glencore warrants and excludes the 100m for Havoc etc

Page 41, 7 subsidiaries are listed, 3 of which (Sirius Ororo OML 95 ltd, SRS Petroleum Nigeria ltd and Sirius 2012 ltd are shown to be distinct from the others under the category 'Exploration for mineral resources'. Can we assume these are the subsidiaries set up for OML 95, OPL 241 & OPL 2012 respectively?

[htrocka2] 04/7/2015 09:46

some quotes from the Annual Report..


'The long awaited Petroleum Industry Bill (PIB) which has been in development for under a decade under the previous administration, is likely to be passed into law in a relatively short time. This will remove the uncertainty that resulted in billions of dollars of withheld investments'

'..along with reforming the NNPC which controls the country's upstream production through it's Joint Venture partnerships with International Oil Companies (IOC's)in order to create a more transparent NNPC.'

'The company continues to hold discussions with parties regarding investment in the Ororo Field. Within the identified structure, there is a large amount of potential upside from deeper structures which we are very keen to exploit.'

'The Company also continues to monitor the award of upcoming marginal fields to be auctioned by the Department of Petroleum Resources.'

'The Company acknowledges that corruption was rife under the old administration and views with a sense of optimism, President Buhari's renewed vigour to tackle the problem'

AGM Wednesday 5th August




and finally...'We are pleased with the work we have achieved over the past year.....'

signed

Jack Pryde

Chairman

June 29 2015

[cornishtrader1000] 03/7/2015 21:39

3M trade after hours, anyone owning up?Buy/sell??

[jjcamargo] 03/7/2015 21:20

Oilbuy, I'm not wrong, your aggression doesn't change that

[thundercat1] 03/7/2015 14:39

Nice post chris sums it up announce jv then sell off hopefully soon too :) then onto the next company for more fun and games .

[bronislav] 03/7/2015 12:43

The 2 million trade may be small beer relative to what has been going through lately but if it was worked through the day it would suggest with the share price movement on the day ,that the amount of shares actually not tucked away by everyone is small and any significant news and related volume could see significant gains........keeping that 10% stake would be of great value doc....

[dr rosso] 03/7/2015 11:32

I wonder if Sirius BoD will want to retain a smallish 10% free-carry stake as oil field operations get under way? Nothing really they can contribute, other than it keeps the indigenous door open for future acquisitions by the new consortium + considerable tax advantages.

[chris shiherlis] 03/7/2015 09:23

Last RNS says it ALL.

HAVOC PAID IN SHARES THEY HAVE DONE THEIR BIT.

OBVIOUS WHAT IS COMING NEXT JV FOLLOWED BY A TAKE OUT.

ANY BUFFOON CAN SEE THIS.

[thundercat1] 03/7/2015 09:01

2m at 0.7p isnt exactly exciting is it not big money at these levels now worse luck, as the RNS said all seems on course thing is they have basically said the same every year except each year we have lost more money and been dilluted more and more due to the fact we still have no funding, there is only so long this can continue, but it states we have funds for another year at least which is going to be at our cost.

Surely this saga cannot drag on another year.

I do expect..well hope we have more news before the aug agm if not there is gonna be a riot there if the share price is still under a penny.

[oilbuy] 03/7/2015 08:56

JjcamargoThe market closes at 16.30. There are no trades after that unless there is an extension. You are incorrect with your comment.

[jjcamargo] 03/7/2015 08:42

it's timestamped at 16:34:08. buy or sell is irrelevant though, small beer

and there are always after-hours trades on many stocks - only the humble pi is told to go home at 430pm, the city boys often have a lock-in :-(

[granitetim] 03/7/2015 08:21

Look at this baby sky rocketing ;)
"To infinity and beyond"

Tragic losers..

[oilbuy] 03/7/2015 07:34

JennyThe only way a trade can happen after 16.30 is when there is an extention onto the trade time. Its called a price monitering extension and is RNS' s. So the trade was during business hours and Market makers can delay reporting a trade under AIM rules. That trade firmed level 2.

[jenny tulwought] 03/7/2015 01:03

Oilbuy, thanks ~ I hadn't realised the trade was executed earlier. How does one tell?

[x1000] 02/7/2015 22:32

Interesting that last 3 agms were held in July and not August like next one. Can only go back that far on my iPhone.

[cornishtrader1000] 02/7/2015 22:26

Oilbuy - is this your subtle way in telling us it's your purchase? If so, good on you and good luck.

[oilbuy] 02/7/2015 22:15

.8495p trade was done at 16.29. The market closed at 16.30pmThat 2M buy was done this morning and reported after the market closed. The market makers weren't paying .81p for a 2 M sell today but possibly tomorrow if they take up the bid.That is 100% a guaranteed buy !