Sirius Petroleum Share Discussion Threads

[aventador] 15/1/2019 12:20

None of these links are any good as said before until the company officially rns this stuff, only then might see share price go up not down for once.

[only1gibbo] 15/1/2019 12:12

Absolutely Dr Rosso

[aventador] 15/1/2019 12:08

What a load of nonsense.

[edgein] 15/1/2019 12:05

Only1,

Authenticity of the post is up in the air until we see the RNS in my book, but given the benefit of the doubt the linked in post didn't specifically mention SRSP, but gave many hints that its likely to be. No worries about alerting competitors though if the deal has been signed they'd have nothing to lose with their post. And if all goes to plan SRSP will likely be very open to other competitive financing because even if BP pre-payment and REYL cover FDP for Ororo they'll need $40m for Ejulebe and additional funding for further assets, $20m doesn't cover all that. Either way we'll know if that linked in post was genuine by end of Jan.

Regards,
Ed.

[dr rosso] 15/1/2019 11:55

Sherl0ck didn`t magically find the Craven info. It was put on LinkedIn deliberately in advance and then leaked to S for him to put on the bb. Innocent pawn. Neat move from whoever pulled the strings because it allowed offloads at mid-60s as pis jumped in. 15% drop and those shares can now be picked up at 55.

[only1gibbo] 15/1/2019 11:54

Ed, it would be usual practice for any such negotiations to have an NDA clause in them. Notwithstanding tha, I really can't see the head of a $1bn fund giving all that info away on a pending deal, alerting competitors to the 'opportunity' in the process, for a deal that they haven't yet signed, can you?

[edgein] 15/1/2019 11:45

Only1,

You may be jumping the gun a little there. Only the end of the month will tell that. That $20m may be for Ejulebe or another asset and nothing to do with Ororo or indeed new assets that the company mention on today's release. Too early to rule that out before the end of the month. There could still be multiple RNS releases still to come this month. I'd still like to see a drill plan confirmation for Ororo before spud, perhaps in a mob RNS. Is it still 2 Ororo wells, LTP, then Ejulebe and if so what's with the two wellheads for 0-4 and 0-5? After today's RNS and previous talk about pipeline of assets I'm not expecting Ejulebe to be the last. Especially if O-2 and O-3 perform as expected. That'll bring $m back into SRSP on cost recovery oil.

Regards,
Ed.

[solarno lopez] 15/1/2019 11:42

Well done gibbo

[edgein] 15/1/2019 11:39

Vito,

Who knows, they may wait until it spuds. Vat and Mini are likely to keep us updated regardless. :) They did previously announce mob efforts with COSL, so you never know what'll come outta bobo next.

Regards,
Ed.

[only1gibbo] 15/1/2019 11:37

So know we all know why Sherlock was given the LinkedIn article to post on the board, to try and get the share price up before they dropped the CLN RNS. A way of getting information out without an RNS that they are liable for and with just enough information in the article to tie to SRSP, but still leaving enough room for everyone to deny it so it can just melt away afterwards.

[minichris] 15/1/2019 11:36

We are assuming its going to Ororo.... never know with this lot :p

[vito corleone the 2nd] 15/1/2019 11:35

Will SRSP RNS when the rig is on Ororo or when the contract has begun and Mobilization has started making tug watching pointless.

[edgein] 15/1/2019 11:31

The boat watches will probably see the tug shift around a bit and possibly a second tidewater vessel come out to shift the anchors. Once the 4 have been lifted it should start to move to Ororo.

Regards,
Ed.

[vatnabrekk] 15/1/2019 11:30

The heimo is too small to tow the rig on its own. An AHTS is needed to take the lead tow but the Heimo could act to accompany it. So we need to see the arrival of an AHTS.

[edgein] 15/1/2019 11:22

Dr Rosso,

Tug will be called out once the jackup is pretty much ready to move, could see it shift around or before the weekend. I still reckon we're on for a Jan spud.

Regards,
Ed.

[dr rosso] 15/1/2019 11:18

Prob needed to prove themselves as a going concern with cash to see them through the next 6 months. Bit of a dodgy outfit, much like the Cornhill crew, but when you go cap in hand it`s on not especially favourable vwap terms.

Early Feb appraisal of D1,2,3 should trigger the release of substantial funds as these Ororo zones have OGR, not OWR. In other words they are fully charged with the three hydrocarbons, oil gas and condensate.

Mobilisation of Adriatic is critical to all this as it sets everything in motion. Rig to move next week?

[bumhammer] 15/1/2019 11:09

1Sonic - thank you :)

[vito corleone the 2nd] 15/1/2019 11:05

Has the working capital fund raise confirmation now triggered rig mobilization

[edgein] 15/1/2019 11:00

Its worth looking back at what they think is the potential of O-2 to O-6. O-2 they think will be capable of 2700bopd with 6MMcfd or 3700boepd. There was talk of O-3 etc then being directional so potential to increase that from the additional developmental wells. Worth looking at the structure of the royalty payments again on Ororo production as it hints at the scale of the development:

"On production of oil _

-- up to 2,000 bpd - 2.5 per cent. of production value;

-- 2,001 to 5,000 bpd - 3 per cent. of production value;

-- 5,001 to 10,000 bpd - 5.5 per cent. of production value;

-- 10,001 to 15,000 bpd - 7.5 per cent. of production value; and

-- in excess of 15,000 bpd - an additional rate agreed between the parties to the Farmout Agreement.

On production of natural gas

-- 0 to 20 MMscfd - nil;

-- 20 to 50 MMscfd - 2.5 per cent. of production value;

-- 50 to 100 MMscfd - 3.5 per cent. of production value; and

-- in excess of 100 MMscfd - 5 per cent. of production value."

The above is based on four more wells after O-2, but we currently have the wellheads for O-2 to O-5. It'll be very interesting to see what the untested G-sands will be capable of in Ororo especially the GOR for the condensate produced, we may get 50-100bbls per MMcf.

We'll have to make a small payment to Owena etc on first production, but then we'll get 88% NRI until payback and it'll trigger the pre-payments from BP. Not sure if they'll need another offtake partner for the gas. Which according to the above royalty provisions may be substantial.

"In October 2011, Sirius Ororo entered into the Ororo FTSA with Guarantee and Owena which provided for the transfer to Sirius Ororo of a 40 per cent. participating interest in the Ororo Field. In exchange for this interest, the Ororo FTSA provides for the appointment of Sirius Ororo as the sole service provider assisting the operator, the provision by Sirius Ororo of certain technical, financial and operational support to Owena and Guarantee on an exclusive basis, and following the decision to proceed with field development, the requirement to fund the development of the Ororo Field on a 100 per cent. basis. Upon completion of reentry and flow testing, which result in production, the Ororo FTSA also requires that Sirius Ororo pay the amount of US$500,000 in aggregate to Guarantee and Owena. At such time, Sirius Ororo will be entitled to a preferential cash flow from the production of crude oil to recover its investment in funding the field to production of first oil, receiving 88 per cent. of net cash flows from the Ororo Field, until full cost recovery is achieved. Following this, the Ororo FTSA envisages that Sirius Ororo's cash flow entitlement will revert to 40 per cent. in accordance with its equity interest. As at the date of this document, the 40 per cent. participating interest in the Ororo Field is held by Guarantee and Owena on trust for Sirius Ororo, a structure adopted by some of the other London quoted companies developing Nigerian oil and gas assets. The transfer of such participating interest to Sirius Ororo is intended to be perfected at a later stage, which will be subject to the MPR Minister's consent, as well as consents from both NNPC and Chevron."

Regards,
Ed.

[rpat2] 15/1/2019 10:59

Just not shelf website just yet tho soon to come

[1sonic] 15/1/2019 10:50

The rig has just been updated to Operational with Sirius Petroleum

BOOM

[edgein] 15/1/2019 10:33

Bum,

Well now that mini has spotted the tidewater tug this morning it shouldn't be too long until you get your wish granted and we get o-2 and o-3 pretty much back to back. that should allow completion of the next acquisition by 15th of Feb and we might get word on what they're looking at next now that today's financing has been set up. I'm sure Dr Rosso can come up with a few theories as to what that is. SRSP get 88% of the net revenues of Ororo until payback and that's all those millions that the company has spent to get it to this point, not just the developmental costs. So it'll be interesting to see how much of the £5m is drawndown and at what market cap/share price. 88% of Ororo is potentially a lot of production for little SRSP in the hopefully not too distant future. Its still capable of Jan spud now that a tug has arrived.

Regards,
Ed.

[undertaker] 15/1/2019 10:15

Agree with Bumharmer!

[bumhammer] 15/1/2019 10:12

A tree shake??
Nope just 2 poor RNS's

For the love of God, tell us that rig is on its way to actually do a job for US!!