Sirius Petroleum Share Discussion Threads

[dr rosso] 24/3/2018 22:55

May 2015

"agreed to consider alternative funding structures for the Ororo Field. These include Nima providing funding to Sirius Ororo (“OML 95”) Limited, a wholly owned subsidiary of Sirius (“Sirius Ororo Ltd.”) which directly owns OML 95, or obtaining funding at the project level. The Directors are also considering a range of alternative structures including debt structures, which are less dilutive than the proposal previously considered."

The first mention of Sirius Ororo Ltd. Owner of OML95. How can it own the block ... unless in league with Chevron.

In the same rns .....
Other Opportunities

In addition, Sirius has been in discussions with regards to participation in a significant oil block located in the shallow waters of the Niger Delta Basin on Nigeria’s continental shelf and is reviewing the data and geological reports and commencing full technical due diligence. The Company is in discussions with two African-centric parties with regards to a farm-in arrangement to develop the asset. This asset has significant 2P reserves and existing wells have been drilled



April 2016 ...... the gas strategy taking shape
The potential to exploit gas in addition to the oil revenue has generated interest from international oil and gas companies to secure and purchase such gas in the form of Compressed Natural Gas (“CNG”) and Natural Gas Liquids (“NGLs”), which are produced as a by-product of the crude oil.

As a result, the Company expects the FDP will contain a Gas Commercialisation Strategy utilising a simple containerised Marine CNG solution for delivery onshore for sale. This is expected to be value accretive for the Ororo field, as it represents a further source of revenue, helping to improve the overall economics of the asset. Developing the gas option also reduces the need to flare gas during the early phase of the extended well testing period. With the potential High Case volumes of gas available, alternative gas monetisation schemes are also being reviewed.




Nov 2016 ...
...provision of a high specification jack-up rig that will be utilised by the Company to drill a multi well campaign as part of its shallow offshore development strategy in Nigeria,

[dr rosso] 24/3/2018 21:26

For anyone still in doubt, the transformational rns was that of Sept 2014. BTG has since been unceremoniously booted out in favour of increased financial backing by BP, both in prepayment and in commercial offtake.

The next big move regarding the pipeline of assets was for Chevron, having withdrawn the proposed divests from the bid round, to get their marginals back into production. The upgraded 20 year licence was granted by MPR in Feb 2015.

Following the new cprs, Sirius brought Sutton in (unannounced)in Jan 2016 as subsurface engineer. In Sept 2017, following the AD joa, the guy was promoted to Production Manager. These stranded marginals are not uneconomic to a junior Co able to raise innovative funding. To monetise commercial gas, both pure methane and the heavy hc gas condensate, they needed a heavyweight dealmaker. Hello Mr Lyon (unannounced).

For the operation to work, the cluster must be tied in to the hub. That's Ororo, which has been constantly stalled until the coordinated production of the outlying fields can shuttle the hcs, mainly gas, into the new central processing facility.
O2 sits exactly on top of the existing Isan-Parabe gas pipeline for a reason.

This is the Ororo Project. The focus, or rather distraction, has been entirely on the Ororo field itself, a not insignificant contributor to the larger project, but just one, albeit a strategic one, of the so-called pipeline of assets. The reason for the deployment of the $100k per day HPHT Force hasn't yet been made clear, but is prob in to target all of the satellite/hub's deeper sands. 2p reserves initially, following O2 appraisal data, will prob be in the region of 200mmb for this Project, giving an share price of around 4p as the Chevron-backed op kickstarts production.

[astralvision] 24/3/2018 13:01

Interesting stuff Dr Rosso, re the marginals being gas condensate rich, was that reported by Chevron back when they drilled? I believe there may be an extra margin for some condensate products, but would need to check. Useless info time for map and geo fans, southernmost tip of India is called Cape Comorin, or nowadays Kangakumari.Anyway that's where the Zhi Yuan Kou has rounded a few hours ago.

[dr rosso] 24/3/2018 12:45

Give it a week for the £20k ISA opp to be taken up. Around the 10th, hopefully we'll get a full scale announcement disclosing the string of tied-in marginals. Size of the acquisition requires brief suspension, followed by publication of AD and cprs. Completions and production engineers were appointed some time ago, so they must have co-ordinated everything by now.
The drilling rig is HPHT-compliant, which leads me to suspect that it'll be used for ALL of the acquired fields (the pipeline of assets), including Ororo, to hit the deeper sands for the big stuff. The outlying marginals, gas condensate-rich, are pre-drilled and Chevron has flowed them, but none have produced from the lucrative deeper sands. For this ultra-sophisticated super-rig to be spending 8 months drilling 2 wellbores and a few sidetracks just on Ororo, at $100k per day, is totally over the top waste of money. These guys will have timed the schedule with meticulous precision.
April also sees us into post-PIGB territory and a new advantageous fiscal regime for smaller indigenous Cos.
Combine these 6-8 producing cluster of satellite/hub marginals together and they form significant collateral which will trigger the $100m REYL facility, a BP commercial offtake and likely much bigger RBL on the horizon with 241 in sights.
Can't see this as being re-rated anything less than £70m mcap as O2 drilling gets underway. Production and data updates should provide steady upward momentum from that platform.

[vatnabrekk] 24/3/2018 12:34

astral, you beat me to it, I was just about to post that! So if it is the vessel for the job, then I expect it will take two or three days to load and get ready for the journey. All being well, we might get a RNS on Wednesday 4th April confirming that the rig has been loaded and on its way.

[aventador] 24/3/2018 12:15

Double figure share price coming.Be mad not to invest and hold.Boom looming.

[astralvision] 24/3/2018 10:53

JT, how about this one, matches your 7:


'Unlocking Proven Opportunities through Innovative Development Finance'

Sounds good to me

[astralvision] 24/3/2018 10:51

Zhi Yuan Kou making good progress towards Abu Dhabi, eta a week today. Just rounded the tip of India (must be a proper name for that like Cape of Something?......) and on with the last leg of it's journey.

not saying it's definitely our vessel, as been wrong on this one umpteen times, but let's just say following it's progress with interest

[jenny tulwought] 24/3/2018 10:48

If you had to sum up, in ten words or less, why someone not invested in Sirius, should consider doing so, what would you say?

Here's my offering (7):


Imminent news aplenty, none of it negative.

[htrocka2] 24/3/2018 08:39

Yes 'deadly...' Let's hope they can keep the momentum going, ie, rig movement, spud date,....and drill.


(12th March rns)
'........ drilling of the Ororo-2 well will now commence in April 2018 and that drilling will be in a location close to the Ororo-1 well (originally successfully drilled by Chevron in 1986'

[deadly nightshade] 23/3/2018 18:18

good solid week here, and ready to kick on again in what hopefully will be a news rich period the next month

[edgein] 23/3/2018 14:32

Jenny,

Yeah exciting time to be about to drill O-2 and O-3 and see first oil flow. Market is very quiet on these considering how close we now are to the action. Could be a lot more volume of trades and posts by mid-April. :)

Regards,
Ed.

[jenny tulwought] 23/3/2018 14:16

PoO above $70.

[drrichard] 23/3/2018 12:30

Yes, indeed, Mr B, don’t want to be too smug, just very happy and a lot wealthier.

[bumhammer] 23/3/2018 12:23

That post sums it up Sherl0ck..
Its odd on we are going to be a group of smug investors a few months from here.

[sherl0ck] 23/3/2018 11:58

In other words - we’ve constructed a replicable template that can be applied to as many assets as we can get our hands on. This is when we’ll really appreciate Bobo’s unique value to the company and understand why he’s been able to court some of the industry's most respected players.

“...the Company's partnership with the Ondo State government, through Owena Oil & Gas Limited which is owned 100% by the Ondo State government, provides valuable access to proven oil discoveries located within Ondo State.” (29/6/17)

“The focus of the Company is on acquiring assets not readily available to other international companies” (29/6/16)

[rod99] 23/3/2018 11:32

Cheers lee, just curious.

[ileeman] 23/3/2018 11:16

@rod

Yea

I like to post charts on ADVFN.

[sherl0ck] 23/3/2018 10:21

Which is why you don’t ideally want to announce other larger assets unless you can demonstrate the financial & operational means to actually develop and progress them. The exciting thing is that we’ve already done a lot of the really hard work in establishing everything.... which means the business is primed and ready to see the anticipated significant growth highlighted in the admission doc..... none of which is currently priced in.

At the moment we may as well be A.N Other small AIM oilie that’s drilling, but the truth is that we’ve built strategic partnerships that will allow us to digest a multitude of assets in a manner more typically aligned with a much larger mid-tier. Market will eventually wake up to this.... and that’s when our years of buying & holding will really pay off handsomely.

[dr rosso] 23/3/2018 10:03

Estimated oil in place is not much of a guide to mcap. LEK has done little more than preliminary appraisal drilling on block 310 and next to nothing so far on block 325. Otakikpo is an unrelated marginal field, with steady production. £100m mcap is about right for LEK atm.
I'd say Sirius is much further down the line with pre-production work on its string of OML95 marginals, and block 241. Mcap is stuck down at £35m due to lack of transparency over those assets.

LEK did at least bother to turn up here ...
Chevron, Nigeria LNG Limited, Total, ExxonMobil are among the list of top industry players that will exhibit at the forthcoming Nigeria International Petroleum Summit (NIPS) to be hosted in Abuja by the Federal Ministry of Petroleum Resources from 19 – 23 February 2018. Chevron’s Agbami FPSO Other industry exhibitors at the event include Addax, Oil & Gas Free Zone Authority, Baker Hughes, NIPCO, Seplat, Lekoil amongst others.

[sherl0ck] 23/3/2018 09:45

HT if only it were that simple. So many other factors at play when it comes to valuations. Just look at Lekoil - nearing 10k bopd production & 62% interest in OPL 325 which is thought to have 5.7bn unrisked barrels in place, yet currently valued just under £100m. We won’t be a $1bn company based on just 10k Ororo production, but that kind of valuation may be in our grasp when other things come on line further down the road.

Sahara is an international, multi-faceted conglomerate of established energy related businesses covering upstream, downstream & midstream, hence their valuation.

[rod99] 23/3/2018 08:39

iLeeman are you Lee_trades on twitter ?

[kwizza] 23/3/2018 08:36

Don’t celebrate progress on PIGB yet, says Kachikwu



Gas priority, new acreages when PIGB signed

[htrocka2] 23/3/2018 08:36

O/T
In an attempt to raise $600m for 25% of the company,Sahara Energy currently values itself at $2.4bn on production of 25,000 barrels a day....If srsp only produce 10,300 bopde from Ororo alone...that's 41% of Sahara's valuation....$1bn.