Sirius Petroleum Share Discussion Threads

[only1gibbo] 03/1/2021 18:21

DN, no I think you are mistaken. As I read it (purely from note 10) some will vest on first hydrocarbons, whatever date that is if within 10 years of grant, some 12 months after that and then some more after a further 12 months.

If you look at the 2018 accounts it states
"The options granted on 19 December 2017 were assumed to vest in 22/34/46 months on their vesting date as the successful first commercial production of hydrocarbons to surface is expected in October 2019."

2019 states
"The options granted on 19 December 2017 were assumed to vest in 35/47/59 months on their vesting date as the successful first commercial production of hydrocarbons to surface is expected in November 2020."

You'll note that the assumed vesting periods have each rolled on 13 months in line with the change in assumption of first hydrocarbons.

The share options granted can be exercised up to between five years after the date first exercisable, and ten years from the grant date. So the backstop for the 2017 options is December 2027 as I see it.

[solarno lopez] 03/1/2021 17:47

They could always surrender the options and write back the share based payment to the P & L and issue new ones at a similar rate and probably a lower number

[deadly nightshade] 03/1/2021 17:30

if we are on the cusp of big news then surely common sense would say that it would be in the bods interest to do all it could to activate them options by that end date?? seems strange how this deal was released just before the options run out, maybe our bod could release a statement to clear this up? thought not

[deadly nightshade] 03/1/2021 17:26

only1, if my memory serves me correct them 1.12p option were for 35months activation time, issued in 2017 so if they have been activated that would have just been before that timeline expired.

[only1gibbo] 03/1/2021 17:12

I suspect peeps are reading far too much into note 10.

Accounting standards (IFRS 2) requires that the cost of share based payments are charged to the income statement, instead of just issuing the shares on exercise of the options as a movement on equity reserves.

In computing the charge a number of assumptions have to be made, one of which is the vesting date of the options, as that determines the period over which the cost is amortised in the income statement.

If you look at the prior year accounts, for those same options, first hydrocarbons were assumed to be October 2019.

IFRS 2 Para 15(2)(b) requires that "... If the performance condition is not a market
condition, the entity shall revise its estimate of the length of the
vesting period, if necessary, if subsequent information indicates that
the length of the vesting period differs from previous estimates."

So because first hydrocarbons didn't occur in October 2019, they had to revise the estimate and appear to have rolled that forward 13 months to November 2020.

That assumption was clearly just out of date as of the date of signing the accounts on 3 December. I suspect that they had planned to issue the accounts earlier when it would have still been valid and that either they realised this and deemed any impact as not being material or it just got missed that the delay had gone past that date.

[vatnabrekk] 03/1/2021 15:31

I agree only1. When I read Note 10 I find "...the successful first commercial production of hydrocarbons to surface is expected in November 2020." So it would appear that this is a statement of what they expected to happen at that time, not necessarily what actually happened.

I would expect "completion" of the acquisition to mean not just signing the agreement, but also to include payment of at least the first instalment. Surely SRSP would not be entitled to ownership of 20% of ATOG, and hence entitlement to a share of the revenues, until the initial instalment is actually paid. Therefore, logic would suggest that the "First Oil" event would only take place upon payment of the first instalment.

On 10th November, on their web site ATOG announced "ATOG is pleased to announce the signature of a subscription agreement with Sirius Petroleum PLC (“Sirius”;) whereby Sirius will have the right to acquire up to 40% interest in the company through two staged payments. First completion is expected by the end of the year at which time Sirius would become a 20% shareholder in the company. ATOG looks forward to welcoming Sirius to the investment group."

So the subscription agreement was signed in early November, which is not the same thing as making the payment. And secondly, ATOG stated that "first completion" was expected by the end of the year, so clearly it had not happened by 10th November.

[only1gibbo] 03/1/2021 13:49

Bestdeal, as far as I can see it doesn't reference 6 November in note 10. Is that just your interpretation on the basis that it says "first commercial production of hydrocarbons to surface is expected in November 2020"?

[bestdeal1] 03/1/2021 11:56

Bidmoll, to make this assumption, re first hydrocarbons, I presume money must have changed hands and we formalised the deal giving us a share of the revenue. i.e first hydrocarbons. But its all guess work and assumption based on the visibility we have of events.

[bestdeal1] 03/1/2021 11:48

Share-based payment
Management has made a number of assumptions in calculating the fair value ofthe share options as detailed in note
10.The critical assumption used is the estimated date of Rrst hydrocarbons to surfacewhich determine the exercise
date ofthe options granted inDecember 2017. In managements opinion this event occurred on completion ofthe
ATOG agreement on 6November 2020.The share-based paymentis charged to the statement of Rnancial income
over the period between the grant of the options and the expected exercise date

[deadly nightshade] 03/1/2021 10:34

Hopefully we have, but not to concerned if we do not get confirmation as looking between the lines hopefully it's just a small part in a lot bigger picture which will all be unveiled. If the ATOG deal was the trigger of first oil to the surface just before the bods 1.12p options expired then we have surely then got to be very hopeful that at some point value will needed to be outed here so the rewards of all these years can be dished out to the bod and hopefully us pi's. Interesting sherl0ck mentioned all those wells being drilled (over 10) and if that being the case and considering the day and a age it seems to take to drill one well then I can't see this then surely dragging in to much into 2021 before news must surely be released

[bidmoll] 03/1/2021 04:52

Were we not expected to have completed our first staged subscription for ATOG shares by now

[thedoogster] 01/1/2021 11:30

Sorry to hear this 1Sonic!! This is sad news indeed!

[xerot] 01/1/2021 08:50

Sorry Sonic that is bad news 😔

[5cer] 31/12/2020 23:50

I can't believe that none of this big deal arrangement has never leaked out or has it ?

Happy new year and good luck for 2021 to all holders.

[twodegrees] 31/12/2020 23:46

1sonic, we can say a prayer for your friend, lets hope for a better 2021

[1sonic] 31/12/2020 23:03

I did what any true friend would do till the end Jane! I’m sad he won’t see the results of what we all believed in xx

[janejem] 31/12/2020 22:46

Sorry you’re losing a good friend Sonic. He and his family valued your love and kindness to him. Thank you for what you did.

[lobleg] 31/12/2020 20:51

Hi AllBest wishes to all patient holders and understanding families. Tonight I'm going to raise two glasses: one to the end of a truly miserable 2020 and another to the start of what should be a spectacular new year. May we all remember 2021 for the right reasons. Lobs

[1sonic] 31/12/2020 20:48

Just a shame that one shareholder after 6 years goes into a hospice today with a 13 million holding won’t see what’s coming.... Happy New Year!

For that I cannot forgive x

[dr rosso] 31/12/2020 20:35

2021 looks the most promising year yet. BP and Glencore both lined up for offtake, so likely to be substantial for these 2 giants to be stringing along. Good chance that Ondo/Owena will regain Ororo, and makes sense to re-engage Sirius and assiciates.

[5cer] 31/12/2020 18:21

Let's hope the bod do not disappoint us in January AGAIN.

[astralvision] 31/12/2020 17:26

I'm liking the sound of exciting 2021, double digit wells drilled, substantial acquisitions etc.The Seplat comparison is interesting and presumably offered up as somewhere that SRSP could aspire to, a mid cap independent O&G company. That would be some turn around to our recent fortunes.Hopefully not a stupid amount of shares issued so we can benefit from the increase in value without that value being spread over too many shares.

[oliversanvil] 31/12/2020 16:42

How to get man on Mars:
Tell America there's oil there.

[qprallan] 31/12/2020 16:38

Sometimes a year has been so disastrous and so terrible that entering a new year will automatically mean entering a wonderful year
In order to be successful in the New Year, stay focused, develop a positive attitude and be passionate with your dreams.

Happy New Year to you all including all those I have on ignore, as its a time of goodwill to all. May 2021 be an excellent and interesting year for all.