Sirius Petroleum Share Discussion Threads

[vatnabrekk] 01/9/2017 16:36

Drewster, is there an outside chance that the BoD might already have thought of some of those costs / hurdles?

[bronislav] 01/9/2017 16:14

Drewster.I guess sirius is like a box of chocolates .."you never just know what yer gonna get"

[jamie40] 01/9/2017 15:10

I can't believe someone's given Granny's post the thumbs up. Perhaps he posts under two names?

[the drewster] 01/9/2017 14:41

No idea of dilution in the new structure
No idea of costs to get existing assets into production
No idea of any costs associated with any other asset(s)
Costs of extraction, transportation, environmental obligations etc. all eat into returns.

Not a dead duck I'd wager, but some of the prices banded about on here are quite remarkable.

Last suspension was at 9p, returned at 5p and sank to sub 0.25p

Hoping all you long termers get some long overdue good fortune.

[wiserthanyou] 01/9/2017 14:29

100% loss ,,
Suck it up mugs

[edgein] 01/9/2017 13:51

Doug,

They did, what's the date of the RNS please?

Regards,
Ed.

[doug51] 01/9/2017 13:05

Ed.They have confirmed drilling Block1 after Ororo.

[bumhammer] 01/9/2017 13:04

Your posts are a breath of fresh air on here Ed

[edgein] 01/9/2017 12:51

Doug,

Yes its possible to produce oil on test before '18, but as for field development, even fast tracked I don't see FFD before mid-18. However fear not multiple wells and tests will make up most of that time and given our cap and NRI from Ororo its as good a multi bagger as you'll get. Also SRSP strategy is to target known oil and gas discoveries they've said they're not interested in chasing after exploration or prospective resources so we could get another asset to appraise once the COSL power has completed developmental drilling of Ororo, perhaps even get mention of that in the Admission doc, who knows. I could see BP stepping up for a pre-payment offtake on another proven asset so gonna be a busy 6-9 months ahead now that everything is good to go.

Regards,
Ed.

[vatnabrekk] 01/9/2017 12:49

Yes HT, I wasn't really expecting the rig to turn up until after the AD has been issued.

[edgein] 01/9/2017 12:45

Alfi,

You're welcome chap. Nout wrong with a bit of healthy debate.

Regards,
Ed.

[htrocka2] 01/9/2017 12:01

doug...... if no rig manifests itself within the next four weeks....the possibility of a take over increases dramatically.... and with no rig the only place Ed and I agree is that 40% of zero is the same as 88% of zero.


ps...there may be other factors involved why there is no rig on site....for instance, they would not be allowed to drill .....this side of a shareholder approved AD...that could take up to another month.

[doug51] 01/9/2017 11:49

Ed.17 weeks till 2018 is it Still possible to produce oil by h2 without a rig?

[1alfi] 01/9/2017 11:07

Hi Edgin. Appreciate your reply to my post. I was trying to base my post on information contained within the rns's and looking at a lowest level scenario. I agree with the points you raised in your reply. Thanks.

[edgein] 01/9/2017 10:40

Eh no, you'll find that royalties are paid from revenues.

Regards,
Ed.

[htrocka2] 01/9/2017 09:05

Summer is over....and still no rig.

'Eh no, SRSP will have 88% of the project revenues ...'

Eh no, Although we have a five year tax holiday, every one keeps forgetting about the 12.5% per barrel Nigerian Government Royalty tax. (varies with volume extracted)....(every eighth barrel goes to the government....which the CPR failed to mention)

[aventador] 31/8/2017 20:30

Summer is over again and still waiting...Come on Sirius let's at least have a prosperous Xmas this year #getamoveon.

[bronislav] 31/8/2017 19:29

Wonder what happened to red or black.?

[qprallan] 31/8/2017 19:23

Hope this doesn't effect us in any way:

[qprallan] 31/8/2017 14:47

More humour whilst we wait.

Couldn't resist copying this from another board.

There is a medical distinction between having Guts or Balls. We have all heard of people having Guts or having Balls.

But do you really know the difference between them?

GUTS - Is arriving home late after a night out with the guys, being met by your wife with a broom,

and having the Guts to ask: 'Are you still cleaning, or are you flying somewhere?'

BALLS - Is coming home late after a night out with the guys, smelling of perfume and beer, lipstick on your collar, slapping your wife on the butt and having the Balls to say: 'You're next, Chubby.'

I hope this clears up any confusion on the definitions.

Medically speaking, there is No difference in the outcome.

Both are fatal.

[edgein] 31/8/2017 10:50

Moreover Gulf oil merged with another co to form Chevron so Gulf oil pretty much equals Chevron.

Regards,
Ed.

[edgein] 31/8/2017 10:46

Htrocka,

There's more to it than drilling costs, project payback occurs not only after pre-drill planning costs, drilling costs but also development costs. All of the money SRSP has sunk to this point, the money BP is going to sink on our behalf and the full vendor financing all make up that 88% revenue share that SRSP will receive before they revert back to wi payments. Oh err well still doesn't matter if it were Gulf oil or Chevron it doesn't change the revenue share. Glad to clarify that for you.

Regards,
Ed.

[htrocka2] 31/8/2017 10:09

Ed

That's out of context....I was trying to ascertain SRSP's valuation after drilling costs had been paid off which, at the end of he day, would give an accurate assessment of their 40 percent of Ororo in the event of a buy out further down the line...and Eh no, Gulf Oil drilled Ororo1. Chevron now own the data.

[edgein] 31/8/2017 09:50

Alfi,

Impossible to compare that and say its 6 months from one well. Firstly Chevron only tested about 40ft of the 200ft of net pay identified in O-1. Also it was an exploration well not designed for production. O-2 to O-4 are designed for development of Ororo, may be deepened and I think the CPR mentioned cluster wells (that's multiple production legs from one well. We'll know more on the publication of the AD ahead. Also with the deepening of the wells to target formations producing from neighbouring fields gives currently unknown upside beyond Ororo. So everyone will read the AD in great detail and until the wells are drilled and at least one deepened (potentially all wells deepened) its totally impossible to estimate how long it would take to provide BP with these two 500k bbl shipments. Clearly from their dd of the field and asset BP are willing to hand over between $10-20m for this initial offtake agreement. I could see more of these coming once the field is in production. Its what has triggered the suspension too. Clearly BP showing their backing has been the key to getting COSL and SLB into action. Market didn't realise this at the time therefore the peculiar reaction to the key announcement, too late now for those not in.

So its best to sit back wait until they get these wells drilled, tested and towards development and we'll get a clearer picture of the size and potential of Ororo. I cannot wait more than ever since BP have given this project the green light with the initial $10m offtake.

Regards,
Ed.

[edgein] 31/8/2017 09:40

Htrocka,

"SRSP will have 40% of the 10,310 bode(and that's without the Daffney CPR estimates)....with which we could be going up to 12,000 barrels equivalent p/day or higher, which could give SRSP as much as 5,000 barrels p/day net."

Eh no, SRSP will have 88% of the project revenues until payback before reverting to 40% working interest. Therefore likely 3-4 years of production, potentially very material production (depending on flow rates of course). Every penny reclaimed before they go to working interest. Although if they find more pay below Ororo that payback may be rather swift. :) Lets get on with the business of getting these 2-3 appraisal/developmental wells drilled and see what this 200ft of Chevron identified pay is capable of.

Regards,
Ed.