Sirius Petroleum Share Discussion Threads

[shez20] 10/11/2020 19:32

More than that when I initially bought in here ;)

[xerot] 10/11/2020 19:29

2.5p for 12 years wait. Great.

[futureisbright] 10/11/2020 19:23

On a separate note, I will be posing a number of questions tomorrow, directly to ATOG and concerning their post/advert.

[deadly nightshade] 10/11/2020 19:21

so its still game on and we await news of the aircraft carrier?

[futureisbright] 10/11/2020 19:19

Why so conservative Drrosso, even with 6bn shares!! 🤑

2.5p with 114 and 109 plus uplift on existing licences and untapped reserves. 😷

[dr rosso] 10/11/2020 19:03

Q is how are they intending to buy up 40% of ATOG`s privately held shares. ATOG shareholders could be offered Sirius shares ie those new ones which were authorised for allotment. Check out Resolution 5 which was approved at the last AGM. Could be looking at 2bn extra dilution.

6bn fully diluted but if 114 and 109 form part of the AD, we should still be looking at around 2.5p for starters

[dr rosso] 10/11/2020 18:57

The equity stake is in effect a merger. ATOG can go off in search of new fields, and we`ll be joint legal owners. What follows is how ATOG (60% owned by existing ATOG shareholders) and (40% owned by Sirius shareholders) decide to fund and work whatever is acquired (the economic interest). One suspects that most of the funding will be coming through Sirius BoD connections.

[sirianbotham] 10/11/2020 18:50

I just assumed when I read it through that when it said "Total acquisition consideration of $11.35m will be satisfied in stage payments through 2020 and 2021" that if they didnt pay they wouldnt get the 40% interest hence conditional. The newer version is clearer so suspect they were asked to change it

Trafigura also not mentioned on website

[dr rosso] 10/11/2020 18:40

Moni Pulo is a straight 40% farm-in to the 114 asset. That`s an economic ie working interest in the asset. Sirius will not be owning any part of Moni Pulo, the Company iself.


Likewise with ATOG, a 40% economic interest in onshore assets is just that. A partnership to develop the two fields.

Acquiring shares in the private Co. ATOG is a totally different matter. Equity stake has nothing to do with economic interest. Acquisition of 40% of ATOG`s shares makes us 40% owners of ATOG. It looks like, assuming that legal process completes, they have already agreed how to split the economic interest. For the offshore assets, Sirius has agreed to fund 80% of development/production costs, so taking 80% revenue.
Good deal.

[shez20] 10/11/2020 18:34

No reference to anything being conditional to funding of any other criteria Tunisia Acquisition and UpdateTransformational acquisition of Tunisian Onshore and Offshore Portfolio InterestsAdditional growth opportunities via the development of existing, appraised discoveries and exploitation across portfolio licences containing c.600 mmbbls OOIPDear Shareholder,We are delighted to report that we have concluded an acquisition which secures a 40% economic interest in the onshore assets and an 80% economic interest in the offshore assets held by Anglo Tunisian Oil and Gas Limited ("ATOG"), comprising a mix of onshore and offshore production, development and exploration assets.Portfolio summary• The ATOG portfolio comprises five onshore licences in the Ghadames basin, three of which are operated, and two offshore operated licences in the Gulf of Hammamet (see overview map).• The portfolio is currently producing approximately 1,500 boepd from three onshore licences:o OneoperatedbyATOG(BirBenTartar);o TwooperatedbyENI(AdamandBorjelKhadra);ando The increased capacity with the newly commissioned Nawarra gas pipeline ($1.2 billioninvestment) will facilitate increased production at the ENI operated licences, which waspreviously production constrained.• The portfolio contains gross 2P reserves and 2C contingent resources of c.21 mmboe;• ATOG has secured a development funding facility of $10m from Trafigura to support a businessplan aimed at boosting production from workover activity and the drilling of new infill wells;• The licences come with $14m of newly acquired and processed 3D seismic and ATOG has used this to prioritise low risk, step out drilling opportunities. Schlumberger has estimated that the operated onshore exploration licences, Sud Remada and Jenein, contain gross original oil in placeof, respectively 472 mmbbls and 100 mmbbls;• The offshore licences, Cosmos and Yasmin, contain two discoveries which flow tested at 5,700bopd and 1,200 bopd respectively; and• Management estimates NPV10 of $110m (based on the Brent futures curve) attributable to net interests in 2P/2C reserves only, but with significant further upside. Also noting that the favourable nature of the Tunisian fiscal regime means that the NPV of our Tunisia assets has an asymmetric relationship with the prevailing oil price under which Sirius will benefit more from higher prices and have an improved downside protection in periods of lower prices.Transaction summary• The interests have been acquired through a wholly owned subsidiary of Sirius Petroleum plc ("Sirius");• Total acquisition consideration of $11.35m will be satisfied in stage payments through 2020 and 2021; and• Sirius will own a 40% interest in the onshore licences and will have an 80% economic interest and operatorship of the offshore licences.Working in PartnershipDevelopment StrategyOnshoreThe ATOG business plan for 2020/21 focuses initially on low-cost well site clean-up, equipment replacement and workover activity at the producing Bir Ben Tartar ("BBT") field, delivering immediate productivity gains and boosting production by 50%, followed by a progressive well infill drilling programme that management estimates could almost quadruple BBT production post the workover activities.The Sud Remada permit surrounds the BBT field and is considered highly prospective. A total of 13 wells have been drilled, all encountering oil and gas, and a 2018 2D and 3D seismic programme has facilitated high grading of drilling candidates. Schlumberger has ascribed STOIIP of 472 mmbbls to the licence, which comes with a funded one well commitment.The Jenein permit, located c.20kms west of the ENI operated Adam concession, contains a discovery well drilled in 2010 and several prospective structures, geologically analogous to producing wells on Adam, that have been identified based on existing 2D seismic. 3D seismic was acquired in 2018, the analysis of which should allow high grading of prospects. The licence carries a one well commitment and Schlumberger has estimated STOIIP of 100 mmbbls.OffshoreThe ATOG team will focus its attention on progressing the development of the onshore licences, with the support of our technical team. As we are securing an 80% economic interest in the offshore licences, we will focus our team's attention on devising an optimal development solution for the two existing discoveries. The offshore licences, namely, Cosmos and Yasmin, contain two appraised discoveries, which achieved high initial flow rates, testing at 5,700 bopd (Cosmos) and 1,200 bopd (Yasmin).Previous estimates provide an EUR (Estimated Ultimate Recovery) of 18mmbbls from the offshore discoveries while the concessions contain mapped but undrilled structures which provide significant resource upside. The Company is undertaking further work on the development plan to monetise these offshore licences. In addition, further exploration leads and prospects will be evaluated.The Cosmos and Yasmin licences are located close to and are analogous to the adjacent Oudna field, which recovered 6mmbbls at an initial production rate of 25 kbpd and a recovery factor of 38%.Investment Summary• Management estimates NPV10 of $110m (based on the Brent futures curve) attributable to net interests in 2P/2C reserves only, but with significant further upside. Also noting that the favourable nature of the Tunisian fiscal regime means that the NPV of our Tunisia assets has an asymmetric relationship with the prevailing oil price under which Sirius will benefit more from higher prices and have an improved downside protection in periods of lower prices.• As well as a low entry cost, the portfolio boasts an attractive mix of production, development and near field, low risk exploration. The previous owner (Medco) invested little capital during its 5- year ownership of the assets, providing significant opportunity in what is an underdeveloped portfolio.• High quality and very experienced teams in both ATOG and Sirius, incentivized to deliver profitable growth.• Business plan focused on delivering production growth and productivity improvements, before shifting to higher impact offshore development and onshore exploration.• All Tunisian regulatory approvals pertaining to the transaction are complete.Working in Partnership 2Tunisia Portfolio Overview Map: Working Interests ("WI") net to ATOG:Onshore:Bir Ben Tartar ("BBT") (Production Sharing Contract) existing production of 700 bopd (Operated). WI: 100%.Adam (Concession) – production of 715 boepd. ENI Operated. WI: 5%.Borj El Khadra (BEK) (Permit) – existing production of 35 boepd. ENI Operated. WI: 10%.Jenein Centre (Permit), Operated. WI: 65%.Sud Remada (Permit), Operated. WI: 100%.Offshore:Cosmos (Concession). Discovery well flow tested at 5,700 bopd Contingent and Prospective resources. WI: 80%.Yasmin (Concession). Discovery well flow tested at 1,100 bopd. WI: 100%.We are delighted to secure this opportunity, particularly as it brings entitlement production and a low risk development programme to the Company. We also believe that there is considerable upside in the onshore portfolio, which is located in a proven, but underdeveloped hydrocarbon province, and we are excited about developing and operating these offshore assets.Future Acquisition OpportunitiesAs previously stated, the Company continues to work on opportunities in Nigeria, as well as other parts of Africa, which are each at varying stages of reappraisal and development following the period of volatility in the oil market. Despite that, and the challenges presented to us all by the pandemic, we continue to work with funding partners and our range of operating consortium partners on the optimum route to progress assets that meet our respective investment criteria. The Company will update shareholders on each project as and when it is commercially appropriate to do so.Intention to seek a listing on AIMIn addition, the Company has commenced the process for the proposed admission of the Company's ordinary shares on London's AIM market in 2021. We will update shareholders on this process in due course. Working in Partnership 3Annual Report & AccountsIt is the intention of the Company to send the Annual Report and Accounts and Notice of Meeting to shareholders in order to hold the Company's Annual General Meeting this year.We are very aware that there is much more to accomplish and we will continue to work hard to bring further opportunities to completion as we now have an excellent platform on which to achieve our goals for the Company and its stakeholders.Yours sincerely,Bobo Kuti Chief Executivewww.siriuspetroleum.com Working in Partnership 4

[dr rosso] 10/11/2020 18:29

" ... will subscribe for shares in ATOG to secure a 40% economic interest."

Office junior is writing nonsense here.

[sirianbotham] 10/11/2020 18:23

It's different but if you read the first statement through it does say it's conditional on stage payments in 2020 and 2021. The current update is no doubt clearer

[shez20] 10/11/2020 18:16

Back where we were guys! Waiting on satisfying certain conditions and funding being complete! Really poor this from the bod with their initial statement change! Total disregard to their shareholders

[riskybisky] 10/11/2020 18:14

Dear Shareholder,
We are delighted to report that we have concluded an acquisition which secures a 40% economic
interest in the onshore assets and an 80% economic interest in the offshore assets held by Anglo
Tunisian Oil and Gas Limited (“ATOG”), comprising a mix of onshore and offshore production,
development and exploration assets.


So the opening statement above is very misleading.

[shez20] 10/11/2020 18:09

Either way it's now been taken out of the update!

[sirianbotham] 10/11/2020 18:06

I think that refers to the 40% onshore transaction and approvals required for the 80% offshore.

[carc] 10/11/2020 17:57

Vat, did Companies House tell you that Sirius had said they were working on a 'merger'?

[xerot] 10/11/2020 17:48

Crumbs, we ought to have known it was too good to be true. Scoundrels.

These guys are masters of the non deal.

[shez20] 10/11/2020 17:43

'All Tunisian regulatory approvals pertaining to the transaction are completeThis part has been taken out of it to which I copied and pasted from it when replying to someone on here to whether it was a definitive deal!

[xerot] 10/11/2020 17:42

Been bent over again, I guess the cruise ship has sprung a leak.

[vatnabrekk] 10/11/2020 17:26

This sounds very similar (but with differences) to the proposed farm-in deal with Moni Pulo. Same basic principals, I think.