Sirius Petroleum Share Discussion Threads

[drrichard] 06/6/2018 18:03

interesting but not earth shattering

[witchywoo] 06/6/2018 16:01

nah, just can't imagine it no matter how hard I try :)

[bestdeal1] 06/6/2018 13:51

imagine them delivering on something they themselves have set as a target.......... pfffft

[vatnabrekk] 06/6/2018 13:48

Looks like Turner & Pope were right - drilling in July (earliest).

[drrichard] 06/6/2018 13:39

Ht, I think 1 sonic would say Boom!

[htrocka2] 06/6/2018 13:31

Imagine the declaration of a farm_in together with a definite spud date.

[sherl0ck] 06/6/2018 13:11

An interesting question is how much money would we need to farm into a new asset? Bobo clarified that we won’t be paying large upfront fees as we’d rather utilise the bulk of funds to actually develop assets. I also note that we still have cash in the bank and the LOG facility remained undrawn by the end of last year. Of course funds are set aside for drilling Ororo but if a another great opportunity presented itself, flexibility might be prudent.

“The Company entered into a collateral letter agreement with LOG... the Company will deliver to LOG such collateral, including the Company’s future oil revenue receipts from the Ororo Field OR OTHER ASSETS, as will be acceptable to LOG, and will grant security in favour of LOG over such collateral.” (AD p.24)

[sirianbotham] 06/6/2018 12:58

Now I suppose the resolutions give permission to allocate more shares so they may not necessarily be issued <1p by the time they are required and I guess you would want to have the shareholder approval in the bag so you could move quickly. So I cna see the logic in having the flexibility to raise capital for assets but not sub 1p

[sirianbotham] 06/6/2018 12:57

Why would I buy assets now when I have to raise capital at <1p when I could have, should have or will be drilling Ororo and moving the share price towards 2p and generating revenue? Its like taking a payday loan today when you get paid tomorrow. It would have to be a damm good, time limited, rock bottom price deal for whatever you were looking to get the cash for

[htrocka2] 06/6/2018 12:44

I like DR's logic..(it sort of goes along with my theory)



'I suspect that the extra cash is for farming in to at least 2 further significant assets, both of which we may hear about in the next day or so. Rig schedule, not necessarily Force, should follow.'




'Resolution 5: authority to allot shares The Board is seeking, by resolution 5, to grant a new authority over ordinary shares up to a maximum nominal amount of £4,444,957 representing approximately 50% of the Company’s issued share capital as at 14 May 2018 (being the latest practicable date prior to publication of this document). If approved by shareholders this authority will expire on 31 July 2019 or, if earlier, at the conclusion of the Company’s next annual general meeting. Resolution 6: dis-application of pre-emption rights The Board is seeking, by resolution 5, to obtain a power to grant ordinary shares without offering them to existing shareholders in accordance with pre-emption rights, which would apply in circumstances where: 1. the allotment takes place in connection with a rights issue or other pre-emptive offer; or 2. the allotment is limited to a maximum nominal amount of £2,666,974, representing approximately 30% of the nominal value of the issued ordinary share capital of the Company as at 14 May 2018 (being the latest practicable date before publication of this notice). If approved by shareholders this power will expire on 31 July 2019 or, if earlier, at the conclusion of the Company’s next annual general meeting.'

[drrichard] 06/6/2018 12:24

Sherlock, excellent.

[sherl0ck] 06/6/2018 12:06

Bumhammer here’s an explanation for my earlier comment:
I’m sure Ororo will be drilled in the near future and should turn out to be a valuable asset but rather than searching for HLVs and worrying about O-2 drilling as the be-all and end-all, I look at Sirius as a large inverted pyramid, with Ororo being the point upon which everything else rests.

As the base, Ororo is absolutely critical but regardless of it actually being drilled it has ALREADY served a vital role in underpinning our innovative partnering & financing strategy that appears to solve the overriding challenge facing the company over the years, i.e the optimum financing and long-term strategy for developing multiple assets. Simply put, how on earth does a tiny company access and develop large assets without giving up the lion’s share of equity and control?

So in a sense Ororo is the key to help unlock everything (I.e. Ororo = BP deal = Reyl debt finance etc....) but as an asset in its own right it will likely be a small part of the whole.

I remain convinced that critics and much of the market continues to incorrectly view Sirius through the lens of other small listed O&G companies and thus only perceives failure rather than recognising that a far larger project is being formed.

They look solely at the absence of Ororo drilling without recognising the clues that point distinctly to so much more. Their loss will ultimately be the gain of all who have bought and held.

[verdant] 06/6/2018 11:56

Bum hammer sounds like a Polish lorry driver

[sherl0ck] 06/6/2018 11:06

DrRosso I think the 394m unconditional shares came out of the previous year’s allowance, hence the distinction from the others which required the new allotment being voted through.

As such I’ve used a figure of 2.12bn from the Dec 17 resolution minus the 290m conversion shares & 329m conditional shares = 1.5bn. Allowing for the LOG conversion shares & warrants/options still leaves another 611m that could be issued right now.... 300m less than would be available from the new allowance (if you similarly account for LOG, warrants/options).

The point is whether this is all about those extra 300m shares? I would hope we’re not looking to issue the full amount so soon. Especially not around the current share price.

[sirianbotham] 06/6/2018 10:53

Like Bum I need to see some action

hmmm that sounds like a small Ad in a dodgy publication

[sirianbotham] 06/6/2018 10:52

Where are you getting the remaining 750m lapses on 14th June? They only lapse because the AGM has been called and replaced by the new resolutions? In which case if there was no AGM they would not lapse?

You maybe right re assets but they would surely have to get the shares issued first before announcing ant asset acquisition. What do you think they will be able to say at AGM re its purpose

[dr rosso] 06/6/2018 10:44

Number of Existing Ordinary Shares in issue 2,542,029,522
Number of Conversion Shares (including Fee Shares) 290,236,279
Number of Unconditional Placing Shares 394,000,000
Number of Conditional Placing Shares 329,700,000
Enlarged Share Capital on Admission 3,555,965,801
Placing Price 1p
Market capitalisation at Admission at the Placing Price £35,559,658
Number of warrants and options outstanding on Admission 796,500,000
Number of LOG Conversion Shares 92,307,692


I do believe that the previous authority was to allot up to 4.3bn. With the above figures in mind, that gave around another 750m to play with.

That authority to allot the remaining 750m (total up to 4.3bn) lapses on 14 June. Whilst one would expect an increase in leeway, bumping up to 5.4bn seems a large hike. Don't give me the "just in case" scenario.

Why a 50% leap, another 1.8bn to be made available for issue? Warrants etc would account for 889m, so they are giving themselves another 900m to play with.

There's nothing otherwise in the resolutions which justifies the bringing forward of the agm by 5 months, so one is left to conclude that it is all about being able to issue more shares. Money is not required for OP fdp which is fully funded via BP, LOG, REYL.

I suspect that the extra cash is for farming in to at least 2 further significant assets, both of which we may hear about in the next day or so. Rig schedule, not necessarily Force, should follow.

[bumhammer] 06/6/2018 10:35

Sherl0ck,

I admire your faith in this venture as my tank (which has held for some years) is on empty now.
I past the point of caring about Ororo months back while others were wasting time searching for mythical rigs.
They can drill Ororo in tandem with the Moon & develop underground lairs for Elon Musk for all I care - just want to see something happening. That's not too much to ask after all this time surely.

[sirianbotham] 06/6/2018 10:23

so if we can still issue 1.5bn shares there is no pressing need to call an earlier AGM to seek approval to raise funds for any imminent asset purchase. That's not to say additional assets aren't in the pipeline. The only reason I can see why they would call the AGM now is confidence as why would you with nothing to cheer about at present.

[sherl0ck] 06/6/2018 10:05

Bumhammer - depends if you think our success rests solely & squarely on drilling Ororo in a timely manner and whether failure to do so equates to the Board’s ineptitude. I don’t.

HT - the point is that via a resolution from less than 6 months ago we currently still have the authority to issue circa 1.5bn shares should we wish to... hence I would be very surprised if an earlier AGM is all about this element.

[oliversanvil] 06/6/2018 09:44

BMN bubbling!

[htrocka2] 06/6/2018 09:36

'Company already has the authority to issue about another 1.5bn shares should they wish to'

Resolutions are mandated for twelve months only, then nullified and a new authority sought.....even directors have to put themselves up for re-election. The above 1.5bn will soon be terminated and a new authority sought.



I'm not saying that this is related...but seems there may be a problem at the Nigerian end?

'Force Majeure' is defined as ...'unforeseeable circumstances that prevent someone from fulfilling a contract.'

(read the bottom line)

[bumhammer] 06/6/2018 09:28

Sherl0ck,
Missing rigs and umpteen delays doesn't display being on the front foot.
I guess we'll find out in a week or two though either way..

Petrol prices also at an all-time high - wouldn't have minded if we were all on the winning side of the price of oil with our investments here, makes it even more of a kick in the nut sack.

[sherl0ck] 06/6/2018 08:19

Alongside the various other clues, my hope is that an earlier AGM demonstrates the Board are on the front foot and it’s more than just good housekeeping.

[sirianbotham] 06/6/2018 08:13

Is it early or not just late as previous years

The Companies Act 2006 requires that the AGM be held within 6 months of the end of the company's financial year.