Sirius Petroleum Share Discussion Threads

[carados] 30/7/2016 17:28

I wonder now after our new pm has decided to review the nuclear power station plant at hinkly point she may opt for gas power stations instead and in doing so push the gas price up more☺

[keysersosse] 30/7/2016 17:13

I've been looking Sherlock for links between Graham Lyon and Sound Enrgy, found nothing of note to date.

In depth analysis on his career is contained in the article below, will keep looking.

[sherl0ck] 30/7/2016 16:44

Did anyone find any documented links between GVL & Sound Energy? It would be great to know he's definitely been involved in both. One thing is for sure, if Schlumberger or someone of similar ilk do end up pulling the same kind of drill funding deal here as has been done with SOU, it's not going to be very hard for folk to put two and two together. In other words it will go mental here! Sound have perhaps helped paved the way for our rerate.

[dr rosso] 30/7/2016 15:01

In December 2015, Sound entered into a Field Management Agreement (FMA) with Schlumberger. Under the terms of the FMA Schlumberger agreed to fund a significant portion of the capital expenditure on the first three Tendrara wells and provide technical services, equipment and personnel to Sound as Operator in exchange for an upside linked to production performance.


Proposal is on the Sirius table atm from an unnamed oil service provider. Surely the same as above. For Tendrara, read Ororo. Get the 3 gas wells drilled, then, as Sound did, seek field development prog funding through a bond issue.
Continue onto the prepared BIG ONE (241) via rbl secured against producing Ororo.

Imo, August AD will see merger of Sirius into Owena for an 80% share of Ororo, with Schlumberger finance in exchange for 20%. GP bought off.
Other assets may remain covered up for the time being. August revelations on Ororo should see a rerate to 2p, rising quickly upwards to 5p. A 10p platform for NewSirius is dependent on 241 being revealed. By this time next year we should be at 20p with 2 blocks (95 and 241) both in production. 2017 is when the big supply of gas is needed by Dangote and Olawepu.

SOU currently valued at £0.25bn, targeting £0.5bn within 12 months. Within that timeframe NewSirius is likely to have much bigger proven assets being developed in a prolific world class O&G basin. Divide £0.6bn by 3bn shares .... 20p.

[bumhammer] 30/7/2016 13:28

We'll all be pleasantly surprised ((::))

[drrichard] 30/7/2016 12:29

Mr K
The" SOU CEO states each TCF is worth £1 per share."
With roughly a quarter the number of shares as SRSP the £1 per TCF rounds down to around 20p, on a very rough comparison. It will be interesting to see what we might have come the CPR. High case in the Ororo update was 0.133 TCF I recall, I.e. Around 1-2 p
And that does not include our oil. Undervalued or what?

[htrocka2] 30/7/2016 11:59

On the 'road show' board, we're told that that Schlumberger WILL drill the Ororo field.....but what they have NOT told us is what it will cost.

[sherl0ck] 30/7/2016 10:52

A big positive flag was all the folk with a much clearer idea of the assets happily taking 2p warrants. They want to make a lot of money too and they'll expect the share price to be significantly above that level to do so.

[keysersosse] 30/7/2016 10:07

Same here Chris, quite optimistic for once with this one matey.

[chris shiherlis] 30/7/2016 09:57

Hi Keyser, the question now is when not if in my book buddy

[keysersosse] 30/7/2016 09:56

I tipped Sound recently to a few people and they'll be happy now but even happier next week when their initial flow rates are announced.
Their CEO states each TCF is worth £1 per share and they've anything from 1-25 TCF which are conservative figures though the CEO himself is reckoning on 5-10 TCF. Schlumberger's recent £7million investment there looks an absolute masterstroke.

I've no idea how much the gas is sold for in Nigeria but if we can get anything remotely like the figures being bandied about by SOU then there's going to be some seriously happy bunnies on this BB.

[aventador] 30/7/2016 09:49

Good post Chris :)

[chris shiherlis] 30/7/2016 09:24

Like Bronslav has always said this could be more about gas than oil and with high demand for it, it makes sense to go down this route more so than the oil, although both will be good revenue streams for the company. I believe that GL doesn't back losers and having him on board is very good news for this company. He is not a man that is used to failure and has delivered a lot of successful projects to other companies. Coupled with the recent news it means I am a lot more positive as to the fate of this, before nothing seemed to be happening except more shares being issues, failed deadlines and a poor looking chart. Thankfully it looks a lot more promising now and we could be on the verge of some company changing news, I suspect some of the other posters are spot on with their call of this being funded by big S and the off take agreement. It would certainly be a excellent way to avoid dilution as the board have always stated they have wanted to do, albeit it not quite working out with no dilution, the main bulk of the cost will not be paid for with dilution or perhaps that is what they meant about limited dilution and trying for the best deal (although sometimes it hasn't felt like it)

I wonder what the plan and structure is for canning this gas and how it will be used and transported to market, probably all done by big S as they probably make a cut on the logistics side.

GLA.

ps some good posts today

[aventador] 30/7/2016 08:50

I'm gonna buy a box of cornflakes with my profits if I ever bank any lol

[htrocka2] 30/7/2016 08:43

Sher10ck... just referring back to your post regarding the price of gas, if SRSP were prudent enough and had the initiative to put in place an 'off take' agreement with BTG Pactual for oil that is still in the ground, then surely potential funders would prefer to have the gas 'hedged' as opposed to an unreliable 'spec' price. Maybe that's one of the reasons why the funders want to see the CPR as 'hedging' rates, on which capital returns can be estimated, may be related to production volumes.

[1alfi] 30/7/2016 08:31

Sherl0ck - why did the company bring the notion of the drilling of Ororo 2a into the public domain. The permit application was for the development well Ororo2

[1sonic] 30/7/2016 08:17

I should have left my money in Sound Energy. Took it out at put it into this......

[sherl0ck] 30/7/2016 08:07

1alfi - As openly sceptical as I've always been that we've drilled O-2A, even I will admit that the recent RNSs do potentially help counter one of my biggest criticisms, namely who will have funded this drill? Saying this, I still remain sceptical as I don't think we will have really needed to drill to secure funding...but I'd love for you to be right!

[minichris] 30/7/2016 08:05

I'm going to open a home for the Siriusly Insane.Then move in myself.

[1alfi] 30/7/2016 08:04

On what basis has the LOCATION of the proposed 3well drill been identified.

[6cer] 30/7/2016 07:48

My ambition is to buy a burger king franchise with my Sirius proceeds. Does anyone know the cost of the franchise ? What do other shareholders have on their wish list ?

[1alfi] 30/7/2016 07:44

My bet is that schlumberger has already funded the Ororo 2a appraisal well.

[sherl0ck] 30/7/2016 07:39

As mentioned here before, it's worth keeping an eye on Sound Energy (SOU) as there may be some symmetry with both companies potentially sitting on sizeable gas fields and working in partnership with Schlumberger, who critically have been more than happy to fund some of their drilling.

They're a fair bit further ahead on the curve than we are and even after a recent strong rise from sub-£80m mcap to £240m in the space of just a month or two, 'long suffering' Sound BB posters are talking of the massive future potential on the back of their CEO's comments yesterday at an investor presentation where he outlined the possible scale of their latest Schlumberger-backed LNG project.

Whilst we're still awaiting our funding confirmation, it's clear that Schlumberger must surely factor as one of the potential options we're considering. Just like Sound Energy, Schlumberger will be very intimately aware of our asset(s) and so a possible willingness to similarly help fund drilling bodes very well indeed.

In emphasising the importance of their partnership with Schlumberger, a Sound BB poster rhetorically questioned last week something along the lines of 'what other small E&P company works with the likes of them'? I felt like replying that I know of a sub £10m company which may have a very similar relationship!