Sirius Petroleum Share Discussion Threads

[htrocka2] 01/4/2017 22:10

Just a quick reference to DR's post 62820


'The accruals, $1.5m payable to Ds, become due at commencement of drilling, not commencement of production'


Sounds to me that by the time they get to the 'commencement of drilling' stage, they would have already converted and been transformed from an Investment to a Production Company.


An article from Pro-Active investor''(cut and paste, 27th of March)

(the delay in issuing the promised JOA and 4th Element info is having a negative effect on the share price and those writing on the subject...hence influencing potential investors)

the article..
Sirius Petroleum (LON:SRSP -) – Seabed Survey a Prequel to What?: Today's news outlining the appointment of a seabed surveyor should silence any doubters that a company is moving ahead with its plans to drill. However, in this instance, to our mind, it raises more questions, most notably over funding, or rather its source, and the plan from here. We remain unconvinced that the management have put together a joined-up plan which encompasses this well, what it is aimed at achieving, the wider development, and those risks and costs. While we would like to believe that the Company is maintaining a joined-up plan, as the financial and technical partner, the lack of cohesive information and dialogue about the asset leads us to doubt that it is. If this is indeed the case, the Company is at risk of being marginalised on the asset and defaulted out just as it gets to the point at which it should start to s ee value for the shareholders being generated. However, we do recognise that the Company may not have disclosed its plans to the Company’s owners, which we sincerely hope is the case. If the Company is found lacking, and only time will tell, the closer the asset comes to a go/no-go decision, the greater the risk that the Company will be marginalised becomes. The Company needs to disclose its development and financing strategy soon, or risk these perceptions becoming imbedded.

SP ANGEL (

I agree with comments made by the article, however, I note they used the term, 'asset' singular.. with no reference to further projects as clearly stated in various rns's. It's also interesting that SRSP is being 'tracked' be other brokers. (makes one wonder what they're advising their clients?)

[thedoogster] 01/4/2017 18:14

lol.....or was that doh!

[aventador] 01/4/2017 12:00

April fools lol

[b4agc] 01/4/2017 11:53

Heard a rumour this could see massive news next week and the share price will jump over 20p :-)))) Boooooom"April Fool"

[pipelinepete] 01/4/2017 11:52

Production it's obvious

[thedoogster] 01/4/2017 11:42

Stop talking tosh!

[aventador] 01/4/2017 11:37

Heard a rumour this could see massive news next week and the share price will jump over 20p :-)))) Boooooom

[dr rosso] 01/4/2017 10:47

Relations with shareholders
The Company values the views of its shareholders and recognises their interest in the Group’s strategy and performance.

[dr rosso] 01/4/2017 10:24

Precious little detail given on actual field progress. However the final results contain accounts which cannot hide the sums utilised by subsidiaries.
$3m by Sirius Taglient Petro and $3m by Sirius Ororo 95. These figures relate to year 2015 and we can certainly expect them to be substantially higher as at Dec 31 2016.
What could the money have been spent on, I wonder


During the year, the Company made loans of $493,288 (2014: $870,141) to Sirius Taglient Petro Limited(a subsidiary undertaking) for cash advances to cover operating expenses and invoices paid on their behalf. At 31 December 2015, Sirius was owed $3,110,881 (2014: $2,617,593) from Sirius Taglient Petro Limited, which has been provided for in full.

During the year, the Company made loans of $793,747 (2014: $155,750) to Sirius Ororo (OML95) Limited (a subsidiary undertaking) for cash advances to cover operating expenses and invoices paid on their behalf. At 31 December 2015, Sirius was owed $2,925,733 (2014: $2,131,986) from Sirius Ororo (OML95) Limited, which has been provided for in full.

Note too the rise in value of the assets acquired, largely in the form of intangibles ie licences. "Total assets have increased from $2,369,000 in 2014 to $4,057,000 in 2015, "

[dr rosso] 01/4/2017 10:19

Interesting developments at FAR, joining up with big players offshore Senegal. NUOG/MFDev linking up with COSL in Nigeria. LEK finance deal with Shell.

"The Company’s core corporate strategy is to work alongside financial and technical industry partners on a joint farm-in basis to exploit larger oil blocks (typically, marginal fields that have flowed oil in the past) in Nigeria."

Nothing has changed. Project A involves 8 or so marginals in Block 95, of which Ororo looks to be the strategic hub which completes the set. Project B involves bringing 241's marginal fields into production. The Project work is carried out by 2 subsidiaries, respectively Ororo 95 and SRS Petroleum Nigeria.



The following statement (June 2016) reveals that, with minimal upfront fees, initial drill costs are covered. Any refs to subsequent funding refer to longer term field developments on both blocks, notably for 241, as well as "continues to review additional asset opportunities, as well as distressed producing opportunities, that require funding."

"There is a growing trend on proven oil assets to partner with major oil service contractors who can provide vendor financing on a turn-key solution to drill wells to production and be repaid through oil revenues generated from the crude oil sales."

[1sonic] 01/4/2017 10:12

The man from Dangote, he say "Yes"

[sherl0ck] 01/4/2017 09:58

28/6/16 "During the period, the Company's focus has been on reviewing the opportunities available to the Company, both in terms of assets in Nigeria and the optimum financing and long-term strategy for developing those assets."

There's a significant depth of profoundness in this statement that perhaps transcends our traditional understanding of Sirius. I find it ironic that it's potentially easier for us to now make major progress in the current climate than it was when oil was above $100. So much has changed in the past couple of years....and I think many things have played right into our hands when it comes to developing and financing a large scale O&G project, regardless of whether we stick around for the long term or not:

- There's now a much greater focus on collaboration, partnering and integration between O&G companies of various sizes. We can now more readily draw upon the expertise and balance sheets of others

Nick Cooper said the following in Ophir's latest results: "As I look ahead to trends for 2017, breaking down barriers between industry and value-chain players is a pre-requisite. The exploration director of a major oil and gas company recently put this best when they told us "now is a time for the industry to collaborate, as we are all in this together; we can compete again if necessary in the next decade". More exploration companies are recognising the benefits from working together, sharing data and knowledge to try to focus capital towards the best opportunities."

- West Africa is increasingly attracting significant attention from global players due to the high quality of assets, low cost of development and improving governmental regimes. Just look now at the frontiers that mssrs Stein & Taylor largely helped open up
- the innovative financing that's now available is an absolute game changer for us, just as Bobo indicated in the podcast. Deferred invoicing is probably just one part of this as I doubt regulatory authorities would really give a hoot if Sirius can save some upfront £
- innovation related to upstream & midstream development and processing of oil and particularly gas, has also opened up new possibilities that didn't really exist even in 2014. This provides much more choice and flexibility when it comes to our own development possibilities
- with smaller W.African countries now making giant strides through collaboration with IOCs and increased foreign investment, Nigeria has faced growing pressure to accelerate much needed reforms and attract further investment and innovation. It's probably no coincidence that the long awaited PIB gets pushed around at $100 oil but has a great chance of finally being passed at $50

Investors rightly question why Sirius still hasn't drilled a relatively small marginal oil field after all these years? I think if this was our sole focus it probably would have already happened some time ago.

On the other hand, how you fund and develop a more complex large-scale project is a whole different challenge, one that the recent market downturn ironically appears to have helped provide answers. I reckon we could be facing a perfect storm of opportunity to finally at long last start to see the shareholder value we've been promised.

[drrichard] 01/4/2017 09:49

Ht, Upon production? One presumes that means that we become a de facto oil producer when we have economic production? At which point the 40% agreement kicks in. Until then Ororo does not throw off any cash, it consumes development cash. At the point of economic production, or before if the BoD choose, I guess, we need to EGM. Or sell out.

[htrocka2] 01/4/2017 09:11

The FTSA

If Sirius decides to proceed to field development, Sirius will be entitled to a 40 per cent. interest in the Ororo field, jointly operating the field with Guarantee and Owena, and Sirius will fund 100 per cent. of the development costs. Upon production of oil, Sirius will pay a further US$500,000 in aggregate to Guarantee and Owena and will be entitled to a preferential cash flow from the production of crude oil to recover its investment, receiving 88 per cent. of net cash flows from Ororo, until full Cost Recovery is achieved, at which time Sirius' cash flow entitlement will revert to 40 per cent. in accordance with its equity interest


First oil is still the key.

[dr rosso] 01/4/2017 08:31

A couple of 1Alfi points worth highlighting.

1. The accruals, $1.5m payable to Ds, become due at commencement of drilling, not commencement of production. The Production Co. clearly has no intention of paying. It is a house-clearing measure, to be paid in cash, that Sirius in Investing guise has to sort out. As at June 30, 2016, the other accrual, which will be largely for Havoc's osp, amounts to $1.4m, conditions of payment being more flexible than to Ds above.


2. That brings us to the allotment of shares. The 0.25p figure is merely the nominal par value but it does allow us to work out how many shares have been made available for distribution. Aggregate nominal amounts 208m 185m 522m 832m = total 1.74bn. The aggregate amounts shown in £s (£522k, £462k, £1.3m, £2.08m) are irrelevant nominal sums and can be disregarded. These share issue figures do not come about by accident, they are all exact round percentages of the no. of shares in issue (2.08bn) as at Nov 2016. Since agm, $500k cash has been paid to Calvet and 454m shares issued. That leaves 1.286bn left.


What is significant is that the share price has been stabilised, held in a narrow range in the last few weeks with a 0.75p mid-point, and reinforced by a 270m placing. The ubiquitous working capital is used as an umbrella to hide how the cash is precisely used.

At 0.75p, the Co. can still raise around £9m. Plenty there to pay off Ds, Havoc and other fees in the run up to production.

Imo, the 4 Partners are likely to be taking stakes in the Project(s) rather than extra shares in a Co. which appears to have almost completed its objective and looks ripe for being taken over at the point of production.

[bronislav] 01/4/2017 07:10

Great post alfi...makes things clearer.

[1sonic] 31/3/2017 20:01

Let's see Jenny, let's see! :-)

[bumhammer] 31/3/2017 18:39

Thanks astralvision

[astralvision] 31/3/2017 17:47

Some good posts today

[pipelinepete] 31/3/2017 17:34

Boom central

[thedoogster] 31/3/2017 17:24

Great post 1alfi! Many thanks for sharing your thoughts!

[them0se] 31/3/2017 17:03

1Afli,

I don't normally take much notice of stuff on here (Sherl0ck and Bronislav aside)
But that was one hell of a great post.

No conspiracy theories, just figures from RNS's and composed thought behind it.

Thank you..

[htrocka2] 31/3/2017 16:55

We're currently up over $3 of the CPR estimate....(that's an extra $32,700 a day (nearly a quarter of a million dollars a week) 'bonus' to the 10310 (Rockflow estimated) bopde......and climbing.

($53.17 a barrel as I write)

[1alfi] 31/3/2017 16:21

Thanks for the positive feedback. Thanks Shez for a much appreciated comment.