Sirius Petroleum Share Discussion Threads

[deadly nightshade] 17/5/2018 19:41

i agree aventador everything is timed to perfection what with the current oil sentiment i just hope this lot deliver something stunning as it could be a case of now or never.

[bronislav] 17/5/2018 18:15

Looking at timing ,it's a great opportunity given the price of oil and the positive sentiment in the oil and gas sector.

[aventador] 17/5/2018 17:48

We would want to see a lot more than a 1.3p spike if we got news on more assets we should be well over that when the rig gets mobilised alone I would hope.
Oil price is on the up let's see the share price marked up to mr mm.

[deadly nightshade] 17/5/2018 17:30

yes bron what ever is revealed in the next few weeks has to result in some near term shareholder value. we just got to be carefull that they dont reveal another asset along with a mass of new shares and no near term intention of bringing everything into production asap. if a new asset is revealed a quick possible spike in share price to say 1.3p then the usual drop back through lack of clarity on production news. i wouldn't put it past this lot to totally put ororo on the back burner after what ever news might be revealed. this lot really need taking to task at this up coming agm on failed deadlines. fingers crossed that the next bit of news results in shareholder value

[bronislav] 17/5/2018 17:29

It was in the AD htrocka but I don't recall it being in any rns,the point being it was not relayed to the market when it was concluded.

[bronislav] 17/5/2018 17:29

It was in the AD htrocka but I don't recall it being in any rns,the point being it was not related to the market when it was concluded.

[htrocka2] 17/5/2018 17:22

Bron.... we were informed of the PTG exit....when I've got a couple of minutes...I'll dig it out for you.

As we're talking about....‘Aims and objectives’ ...

jJune 2012
'Furthermore, upon acquiring an interest in the Block, Sirius will be entitled to a 20 per cent. interest in the unitisation of a producing Field (the "Field"), the structure of which intrudes into the Block.

Sirius does not intend to make any significant capital expenditure in the Block, excluding farm-in fees, until it has realised revenue from the unitisation of the Field.'


I've no idea what happened to the "field" investment ...but there has been nothing in the accounts that refers to 'unitisation' revenues.

[vatnabrekk] 17/5/2018 17:09

PIGB not yet passed to the President:

[bronislav] 17/5/2018 15:38

I don't assume that news is always released when a company has it at their disposal.The market doesn't work ilke that in particular on aim.Trading patterns before positive/negative news confirms this for me as I have seen it too many times.The AGM is early for a reason and I would lay odds we get that pre AGM news sweeteners to make it a happy clappy meeting.

When did BTG exit and were we imformed when it happened ,.

[astralvision] 17/5/2018 15:29

Yes, things change and develop, nothing stays static, however I was referring to a policy of a few months ago and I believe the business model from the GM is intact and largely unaltered, that seems pretty self evident given we've got the same consortium partners as a few months ago, although things can be tweaked etc.

That is a different subject to a long list of broken time lines and how the company is viewed by the market.
I agree, I assume we are all here for some shareholder value, inc the bod and everyone else associated with SRSP. And perhaps they are indeed hinting, but lets see it in black and white, that would be good. Market sensitive news has to be released, and, so far, we've yet to see it so I assume they ain't got it.....yet.

[bronislav] 17/5/2018 15:15

Astral.so many things have been said and changed over the years.Agm promises have come and gone.Even our Bobo has stated things that have never materialised.Unfortunately this is how the company is viewed by the general market and certainly long term holders .Would it not be refreshing to see some shareholder value on the back of our patience that we used to be thanked for..Maybe the company is hinting that no more patience is needed.

[astralvision] 17/5/2018 15:07

here's what SRSP said at the GM around 5 months ago, you can see they specifically rule out equity investment from Schlumberger as it's not their preferred business model.

never say never and perhaps something has changed, but that's what my reply was based on.


From the GM, Q&A:


Q said looking at REYL model on other assets, can you use the other consortium partners to do the heavy lifting, free carry?

A. in terms of financing, we would look to use REYL. In terms of operations we would look to use a similar framework with the same providers. When it comes to the resource we want as big a piece of that as possible

Q Schlumberger have taken equity in the past? Re Sound Energy

A we did look at that model, they not only take equity, they take profit upside,( was wrt Sound Energy deal) there’s a cost to that, when we were having discussions with Schlumberger various models were proposed, this is the one we felt was the right one.

[1alfi] 17/5/2018 12:33

Thanks for the reply Sherl0ck. Appreciate your willingness to explore and objectively evaluate the possible scenarios.

[sherl0ck] 17/5/2018 12:32

Forget big farm in fees - I think we have significant leverage with field operators/owners when it comes to negotiating entry into other assets.

Aside from our other tech services partners who provide huge operational credibility, via Reyl and BP we’ll demonstrate an ability to potentially secure funding for full field development and also guarantee prompt payments on liftings.

These two things alone should provide strong incentive for owners of dormant/distressed producing assets to give up asset equity for little or even no upfront monetary payments.

Since many assets were also originally secured with little financial outlay anyway and are producing zilch, holding just a smaller percentage stake in a long term producing asset without having to actually do that much is still a great deal for them.

[sherl0ck] 17/5/2018 12:23

Tut tut.... Jack didn’t even include his usual scripted appreciation of shareholders in this year’s accounts. Every other year has had the following:

“Finally, I would like to thank our shareholders for their support as we continue to develop the business.”

This year, nothing?! C’mon Mr Pryde we all know it’s just copy & pasted anyway but to leave it out??

[sherl0ck] 17/5/2018 12:11

1alfi - good spot. Previous Annual Results have certainly talked about joint farm-in on assets, usually including the following wording under the ‘Aims and objectives’ heading:

‘The Group'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...’

So I initially wondered if the extra reference you highlighted in the latest results was just a copy & paste error and now non-applicable since we appear to have gone down the Reyl route, but it seems unlikely to be an admin error as it’s been aligned to specific new wording about Ororo, which appears as a wholly brand new section in the results called ‘Intangible Exploration and Evaluation Assets’.

Whilst one might imagine a joint farm-in scenario to be more applicable to other larger assets, it is admittedly curious to see the wording applied to Ororo as still a possibility alongside other separate funding facilities.

So I don’t know what the answer is and it would be a good question to pose at AGM. Either way (and even if it ends up only being applicable to further assets and not Ororo) it looks more like a scenario of jointly farming into the available equity of assets rather than a partner taking an equity stake in Sirius.

[htrocka2] 17/5/2018 11:16

I stand corrected, they were issued to 'company advisors at the time'...agents for the deal,.....which makes the situation worse...at least with Glencore holding nearly 5% may have been useful to us further down the line.

[shez20] 17/5/2018 11:12

We all know bobo has a severe case of verbal Diarrhoea!

[sherl0ck] 17/5/2018 10:44

Clarification - Glencore have never owned any warrants or equity in Sirius. Their deal was to secure up to 60k bopd offtake from Sirius and provide us with up to $65m pre-financing facility. In addition and alongside this arrangement, Strand helped secure placees for 900m warrants at different strike prices, which if exercised fully would have equated to $100m (£60m).

[1alfi] 17/5/2018 10:36

"Can anybody clarify. If Schlumberger was about to farm into the 'Ororo Project', would shareholder approval be required to give it the go ahead ?"

Final results

"The Group intends investing further amounts into the Ororo Oil Field, as part of its strategic development plans. The costs of the capital and operating costs will be covered by either separate funding facilities or by financial and technical industry partners on a joint farm-in basis."

[htrocka2] 17/5/2018 10:25

' technical glitch that puts the drill off for 8 months! Give over astra'

Maybe that's not too far fetched....for the following reasons.(I'm going for the red thumb record today...wish me luck.)

On 04/'13 SRSP had 818m (round numbers) shares in issue. Then along came Glencore who offered $65m financial support in exchange for 900m warrants. This would have meant , had it gone to completion, Glencore would have owned 60% of the company.(this is what they signed up for).SRSP guaranteed Glencore 60,000 bopd and 14 months later Glencore were still there. We have an rns to say that this deal was agreed and signed by both parties. However, for some reason that baffles me, with this deal in the bag, SRSP kept issuing shares willy nilly and reduced Glen's percentage down to 45%. It was at this point Glen pulled the plug, however, they still had control of 900m warrants that would have equated to 22% of the Authorised Share capital...this later got re-negotiated and reduced to 185m, being 4.6% of the company....for doing nothing. These warrants expire on the 3rd of Dec 2018. The question being...with SRSP's ambiguous statement of 'aiming to drill in 2018' are the company running the clock down to eliminate these warrants and regain control of that particular percentage? (you should all know where the red thumb box is by now.)

[aventador] 17/5/2018 10:24

Nope he makes all this nonsense up.Wait for the AGM and get the real facts don't listen to the garbage posted on here.

[bumhammer] 17/5/2018 10:23

Rosso, do you know this for a fact or is it just your opinion?
Becuase dishing out 1.8b shares is a big claim you maniac haha

[astralvision] 17/5/2018 10:09

Bronislav, don't believe his post is relevant for a whole host of reasons, non starter,imo.

for example, pretty close to the same question was asked at the GM and it was emphatically rejected. I've posted the Q&A re the GM earlier this year, but not got time to look back, suffice to say sound reasons were given as to why such a scenario was not attractive and not likely. Simply put this is not the business model they are pursuing, as should be clear from the actions to date.