Sirius Petroleum Share Discussion Threads

[cornishtrader1000] 25/4/2017 19:48

"Giving $23 per barrel profit"That should also be nearer $30-35 per barrel by the time we're in a selling position

[drrichard] 25/4/2017 19:42

Ht, I agree but I thought his maths were presented cleanly enough to bring home the early potential.

[htrocka2] 25/4/2017 18:02

drr...I doubt very much that the 10,310boepd (Rockflows numbers) will be maintained for long....with the extra depth, increased number of wells, we could far exceed that number within the following twelve months...as in the OML 67 scenario.


from OML 67
'Production began at the field in February 2011 at a rate of 3,300bopd. By January 2012, all production wells in the initial phases of development were brought onstream, increasing its production to 40,000bopd.'

[drrichard] 25/4/2017 16:38

Courtesy Wanderer on LSE
Heres a few stats to mull over....

Mid Case NPV10 is $49.2m....
Production is based on $50 POO for the life of the field....
Production break even per barrel is $27....
Giving $23 per barrel profit...
Mid Case productuon target for oil is 6,000 bopd....
Mid Case production target for gas is 25mmcfpd....
That's a combined target of 10,000 boepd...
That equates to $84m per annum PROFIT....
Gross Contingent Resources is 30MMstb....
Over 10 years that $840m PROFIT....
40% of which is SRSP share...

DYOR.....its all there except the COS which seems very elusive. Given that we are drilling in a proven basin I presume the COS must be very high....

[bsg] 25/4/2017 15:31

Just treading water, squeezing out the weak holders.

[1sonic] 25/4/2017 14:48

And it looks like its going to pop up again

[pipelinepete] 25/4/2017 14:47

Popped up :)

[shez20] 25/4/2017 14:26

The never ending(dilution) funding of Sirius petroleum! Just been 5 years of top top top secret negotiations! 2 months before supposedly first hydrocarbons and no ones any the wiser unless you have the cool 3D glasses to read the rnss then it all becomes crystal clear

[htrocka2] 25/4/2017 14:16

Good find drr...It's tantalizing to think that a prospect may possibly exist whereby Schlumberger are to be part Project Funders...It did seem curiously strange at the time that the signing of Schlumberger had a baring on the Vendor Finance Consortium...perhaps a Schlumberger finance subsidiary exists that is supply the cash?



Vendor Finance Consortium
Following the execution of the agreement with Schlumberger, the Company is now in advanced discussions to finalise the participation of the last member of the Vendor Finance Consortium and intends to announce further details in due course regarding the final elements of the financing and operational service agreements.




For instance...

[drrichard] 25/4/2017 13:29

Shlumberger 1st quarter results



“At Schlumberger, we are therefore actively seeking to position the company at the forefront of an industry that needs to evolve. We are doing this by proactively managing our base business and responding to the ongoing pressures of commoditization, tailoring our offering and performance to the prevailing market conditions. In parallel, we are constantly looking to expand our opportunity set by pursuing a broad and active M&A program; engaging with existing and new customers to establish closer collaboration and more aligned business models; and expanding our offering from technical support to investing alongside our customers in their projects—all with the aim of driving more activity for our 19 product and service lines. As we continue to carefully navigate the current industry landscape, we remain confident and optimistic about the future of Schlumberger, knowing very well that beyond the current market challenges lies a wealth of opportunity for the industry players who are ready and able to think new and to act new.”

in particular this phrase
....offering from technical support to investing alongside our customers in their projects

[htrocka2] 25/4/2017 12:49

The problem with closed periods from SRSP's perspective is that while deals are in the process of negotiations, the company can class and claim the period in question as a 'closed period'. The parties they're negotiating with will undoubtedly have signed confidentiality agreements, there bye banning themselves from trading in shares, This in turn gives the company the legal right to withhold price sensitive info that they don't want released into the public domain....and is the main weapon in their armoury that keeps the lid on what they're up to. That's why I believe that come 30th June/July, after five difficult years....all will be in the open.




definition..
close period (i) The period of two months preceding the publication of an AIM company’s annual results (or, if shorter, the period from its financial year end to the time of publication); and

[jenny tulwought] 25/4/2017 12:29

h/t - That's what I was alluding to yesterday...
The reason they're not currently snapping up shares in the secondary market, being that it could (would?), be regarded in due course, as constituting 'insider dealing'.

[htrocka2] 25/4/2017 12:04

'I don't imagine that partners will buy shares in Sirius (probably would be classed as insiders and unable to anyway whilst in closed period), rather they hold a share of the assets.'

Schlumberger took up their conversion rights 12 days after 'Sound's' closed period expired. I was surprised that they were also part Project Funders....We're not in the 'closed period until this Friday, ie, three days left, however, I'm sure that any way forward in this direction would not be announced until after the results on June 30th.






"Following the early success at Tendrara, I am delighted to reveal the first of our funding solutions for Badile whereby Schlumberger gain access to a 20% profit interest in the licence in exchange for funding 30% of the estimated cost of the first well and 20% of all costs thereafter.

[sherl0ck] 25/4/2017 11:06

Consortium partners (at least the larger ones like Schlum) would almost certainly be here for more than purely an ad-hoc service contract and one assumes that the JOA will spell out each partners participating interest or equity share of the entire designated programme, whatever that turns out to be.

A Joint Operating Committee will also likely be established to oversee everything and will comprise key individuals from the operator and non-operator parties.

I don't imagine that partners will buy shares in Sirius (probably would be classed as insiders and unable to anyway whilst in closed period), rather they hold a share of the assets.

Schlum didn't buy shares in Ophir or Sound, but in the former they specifically created a new Joint Operating Company via their OneLNG JV and hold the majority 66.2% share of the Fortuna FLNG project / and in the latter they hold an equity share of SOU's assets.

[bronislav] 25/4/2017 09:26

Schlumberger have continuously been mentioned in respect to Sirius ,chech back over rns,s .The agenda for schlumb has seemingly changed and the sound energy and Ophir activity with schlum suggests that they would logically want more involvement with Sirius /Niger delta than a service contract .Havoc and BTG seem to have gone quiet in respect to Sirius with hardly any mention.but schlum has always been lurking..No certainties with the PIB so not holding my breath for this week but it is crucial to Nigeria going forward so it will happen and from the sounds coming out of Nigeria I suspect soon.

[htrocka2] 25/4/2017 08:58

If you read the 'Sound' rns closely, a curious point is made....Schlumberger are taking an interest in 'relinquished areas'.....The proposed up and coming Nigerian Marginal Field bid round consists of 'Relinquished fields', a parallel to the Morrocan Hydrocarbon Code.



'Sound' rns extract.
'The binding heads of terms will, subject to contract, result in the extension of the existing Field Management Agreement between the Company and an affiliate of Schlumberger Oilfield Holdings Limited (the "FMA Extension") to include Meridja and the area(s) of Tendrara relinquished in accordance with the Morrocan Hydrocarbon Code (the "Tendrara Relinquished Area(s)").

[bronislav] 25/4/2017 08:32

It's also perhaps no coincidence that we had dilution around the time of the schlumberger rns and a relatively significant rise to circa 1.5p on the back of volume soon after the rns.With the possibility of more dilution Sirius would not want the cat out of the bag at this stage if schlumberger did have some interest other than providing services.

[1alfi] 25/4/2017 08:27

'Schlumberger Integrated Project Service Agreement'

I see the above agreement RNS does not contain any information regarding the payment to Schlumberger for their services.

[bronislav] 25/4/2017 08:10

Given schlumbergers changed policy it's hard to imagine them not wanting a slice of the Sirius pie.Lets not forget schlumberger have been associated with Sirius for many years now and nobody knows the geology of the Niger delta better than them.

[htrocka2] 25/4/2017 07:29

It looks as if the world is being turned on its head, with Schlumberger introducing a complete policy change....Schlumberger are now farming in and taking up percentages/economic interests in fields in exchange for their services...could this be the reason for the JOA delay?


'Schlumberger will be granted a 27.5% working interest in the Meridja area and a 27.5% working interest in the Tendrara Relinquished Area(s).'

[htrocka2] 24/4/2017 22:42

O/T

We were discussing how 'Solo' operated as an investment company. While going through their results I noticed that they too, via a third party, have applied for interest in a 'number of marginal fields'. If they've made 'applications'...I'm sure we have too. You never know, could end up as neighbours. However, 'has made applications for a number of marginal fields'.....each marginal field applications cost $28,000 just to view the data....the fields they're currently looking at are two adjacent fields that have 10 wells.

SOLO too have given themselves the option to become joint operators....should they so wish.



West Africa (from SOLO's 2014 Results)
Ongoing discussions with Pan Minerals through 2014 resulted (after the current year-end) in an agreement to acquire a 20% interest in Burj Petroleum Africa Limited, a company which has made applications for a number of “marginal field” interests in Nigeria