Sirius Petroleum Share Discussion Threads

[jenny tulwought] 20/3/2018 16:14

Well if nothing else, it's been a good day of steady, sustained buying
(so far).

[dr rosso] 20/3/2018 15:06

Page 118 of AD laid out a timeframe which is totally different from the accelerated version of post 76552

July 2017 for O2
Dec 2017 for O4
Mar 2018 for O5

All 3 wells are targeting the D zones, so I can't see why the cpr stated an 8 month gap

[ileeman] 20/3/2018 12:48

Taken 8million shares in total now and await the rerate. Good volume, no real sign of overhang....lets see this build from here.

[pgtops] 20/3/2018 12:36

So today there's no suggestions of a sell-off to the Chinese or others! Looks like we got ourselves a production company!!!

[edgein] 20/3/2018 12:24

Occam's razor on that RNS, less is more etc. Everything doesn't need a conspiracy theory. :)

Regards,
Ed.

[drrichard] 20/3/2018 12:24

Spot on, Ed.

[edgein] 20/3/2018 12:22

Ah but Dr Rosso, by the time they come to drill O-4 and O-5 they'll have O-2 and O-3 both pressure tested, probably DST and potentially full flow test. That's all the data they need to move the rig immediately to O-4 and O-5 if they choose to do so. There's absolutely nothing to stop them in 2-3 months time with the current well data, the data gathered from the logging and testing of O-2 and O-3, to move to full field development. Especially if the tested wells exceed expectations.

Regards,
Ed.

[htrocka2] 20/3/2018 11:32

So we could be looking at 4 X 10,3000 bopde (41,200) from Ororo alone... by Christmas.

[astralvision] 20/3/2018 11:22

Yes, 241 would fit the bill minichris.I guess they save that one up for the 'grand finale'!

[dr rosso] 20/3/2018 11:18

Complete with an existing gas pipeline that goes right through the middle of it, SE to NW

[minichris] 20/3/2018 11:12

"say we had another acquisition in mind beyond these marginals"

You mean 241 Astral, Sirius' worst kept secret.

[astralvision] 20/3/2018 11:10

Thanks for the info Dr Rosso, a very interesting read.Makes perfect sense.Wonder when the timing would be right for such an acquisition?Sherl0ck's suggestion that another acquisition is a sensible diversification of risk strategy pre Ororo spud makes sense. Also a buoyant share price is never a bad thing, say we had another acquisition in mind beyond these marginals, don't think anyone would object to a modest raise at something like 2p-4p, that might be possible with these marginals and other fields on board.

[dr rosso] 20/3/2018 10:59

Oct 2011 rns

The closest producing fields are Mina, Isan, and West Isan, all of which are operated by Chevron and are situated between 4km and 6km from Ororo providing a low cost tie-in opportunity;

The marginal field opportunities in Nigeria make this area of operation very scaleable for Sirius, and the Ororo farm-in would mark the first stage of the delivery of our strategy

We are very well positioned to develop our first and subsequent assets in Nigeria where we have established a series of strong partnerships. . Both Owena and Guarantee will be valuable partners to Sirius in its pursuit of its Marginal Fields strategy, and Sirius looks forward to working with both companies.

[dr rosso] 20/3/2018 10:50

Ewan Field is located in Oil Mining Leases 49 and 95 of NNPC/CNL's Western Niger Delta acreage. The field was discovered in 1980 by Ewan-1 which encountered over 100 feet of net oil in four sands.

Ewan-2 appraisal well was drilled in 1981. A short duration flow test in the main reservoir (C-02 sand) reported approximately 1000 BOPD of 23° API oil at 200 SCF/STB GOR. The well could not be flowed at higher rates due to sanding problems. Ewan-3 appraisal well was also drilled in 1981 but was not flow tested.

Ewan-4 was drilled in 1992 to delineate the down-dip limit of the C-02 reservoir and it was completed in the C-02 reservoir with a single gravel pack. A Drill Stem Test (DST) immediately following the completion flowed 420 BOPD of 20° API gravity oil on 24/64 inch choke.

[astralvision] 20/3/2018 10:45

Ok, very interesting, thanks Dr Rosso. Any idea what those four contain?

[dr rosso] 20/3/2018 10:42

Not only those 5, they could tie the lot into Ororo hub. Northern OML95 includes
West Isan, Mina, Bella, Ewan. All sat there waiting for production to be restarted.


Azama/Ruta (Ondo) 56.6mmb 2P
Meta (Ondo) 35.6mmb
Oloye (Ondo) 76.7mmb
Shango (Ondo) 26.7mmb

[astralvision] 20/3/2018 10:39

The news that Sherl0ck posted last week that David Sutton was working for SRSP on 'small Nigeria offshore fields that the company wishes to develop' was very interesting. Dr Rosso posted that he thought this would be the marginal fields surrounding Ororo.

I always like to have a sense of geography on these things
Here is a map of the OML 95 field



On it you can see the five fields Dr Rosso mentioned, namely Shango, Meta, Azama, Ruta and Oloye.

This is a decent and interesting report here:



Appendix B gives the breakdown of the Chevron marginals, adding up the total 2P reserves and you get a figure of just shy of 200mmbbl for the five fields.

If this is indeed our acquisition, then it certainly fits on a lot of levels and if you had 20% or 40% of 200mmbbl, has the potential to transform the sp, which , at the moment, is based on 40% of 24m, ie around 10m barrels to SRSP in Ororo.
So it's possible our assets could go from 10m to 90m, call it close to ten fold increase. Wonder what that would do for the sp?!!!
And, potentially, that may only be the first asset of many we could acquire.

Yes, a lot of iffs and buts, but we know SRSP are working on marginal offshore fields, and where better to start than in OML 95? It all makes a lot of sense.

[htrocka2] 20/3/2018 10:23

'...confirming that two further well head systems are on route to Nigeria where they are planned for deployment on wells Ororo-4 and Ororo-5.'

The really good news is that the above confirms that the Project Finance deal has been accepted , is in operation and now up and running.

[dr rosso] 20/3/2018 10:12

"It’s better to separate the agreement into the two key components; a commercial off-take element and the revolving $10m prepayment facility."

Read the August 2017 rns again. There are 2 separate deals. One has been called the "Prepayment Agreement or Agreement", the other is the "Offtake Agreement".
All details refer to the first. Nothing at all on the COA.

" is pleased to announce that following completion of technical due diligence on the Ororo field, the Company has entered into a US$10m revolving pre-payment facility ("Pre-payment Agreement" or "Agreement") and commercial offtake agreement ("Offtake Agreement") in respect to the sales of the crude produced from the Ororo Field, with BP Oil International, a subsidiary of BP (LSE: BP).
The Agreement provides for the Company to draw down up to US$10 million, in pre-payment finance following commencement of production from the Ororo Field. The interest rate on any pre-payment amount drawn down will be charged at Libor + 9% per annum and will be repaid from crude oil sales.
Under the Agreement, Sirius can request that BP provides pre-payment finance for either or both of the first two cargos of crude oil, each for up to US$10 million,"

[dr rosso] 20/3/2018 10:03

Ah yes, wellheads. Not platforms. Still seems improbably early to be getting this equipment into place. 8 months away from O5 drill

[minichris] 20/3/2018 10:02

@drrosso

"The two multi-slot wellhead platforms already ordered are sufficient to serve the O2-O5 wells. See AD page 118."

My understanding is you still need the wellheads to go on the platform.

[ileeman] 20/3/2018 09:59

April drill, anyone on the sidelines have no excuses now imo

April drill/early May (latest) game on.

"Sirius plans to commence the drilling of its first well on the Ororo Field, the Ororo-2 in April 2018 which will be in a location close to the Ororo-1 well which was originally successfully drilled by Chevron in 1986."

[dr rosso] 20/3/2018 09:54

Re earlier post, it indeed makes no sense, without full appraisal data, to go ahead at this stage for O4 and O5. O5 is 8 months down the line.Also, they are aimed at D zones, 2 then 1. The two multi-slot wellhead platforms already ordered are sufficient to serve the O2-O5 wells. See AD page 118.

Today's announcement is imo nothing to do with Ororo. These 2 new ones are destined for other assets, probably 2 of the Chevron marginal divests which are pre-drilled and have been production-tested in the past.

[ileeman] 20/3/2018 09:26

Added some more this morning on the back of that RNS.