Source - RNS
RNS Number : 3356J
Sirius Petroleum PLC
08 September 2016

 8thSeptember 2016

Sirius Petroleum plc

(the "Company" or "Sirius ")

Competent Persons Report on the Ororo Field

Convertible Loan of £500,000

Sirius Petroleum (AIM: SRSP), the investing company focused on oil and gas exploration and development opportunities in Nigeria, is pleased to announce the results of a Competent Persons Report ("CPR" or "Report") for the Ororo Field ("Ororo") in OML 95 located in shallow waters offshore Ondo State. 

Competent Persons Report on the Ororo Field

Sirius announces that independent petroleum consultants, Rockflow Resources Limited ("Rockflow"), have produced a Competent Person's Report ("CPR") for the Ororo Field. This valuation, subsequent to the technical volumetric description announced on 22nd April 2016, was commissioned to assist the Company with potential funding and vendor finance proposals.

Following comprehensive subsurface analysis, which confirmed a gross Mid to High Case liquid hydrocarbon volume range for the Ororo Field of 7.65 MMstb - 20.48 MMstb, Rockflow determined project economics using the Company's Field Development Plan ("FDP"), which reflects the optimal development strategy for the Ororo Field.

The results of the CPR, details of which are set out below, demonstrate a material valuation to Sirius as at 6th September 2016.

Summary of Rockflow's results:

·     A Mid Case Net Present Value (NPV10) of the asset of $49.2m, based on a $50 per barrel flat real oil price for life of field

·     The Mid Case scenario implies peak oil production at 6,000 stb/d and peak gas production at 25 MMScfd, which equates to combined peak production at 10,310 barrels of oil equivalent per day (boepd)

·     The Ororo Mid Case has a positive NPV10 above $27/stb

·     Sirius' entitlement to oil and gas production is greater than 40% of field production due to its entitlement under the FTSA to recover a higher share of its capital investment from production before distributing cash to other Partners


Rockflow evaluated Ororo at a base reference oil price of US$50 per barrel and a gas price of US$3.50/Mscf (real terms flat)

Low Case

Mid Case

High Case

Sirius Net Oil Contingent Resources (stb)




Sirius Net Gas Contingent Resources (Bcf)




Total Sirius Net Contingent Resources (boe)




Sirius Net NPV10





Summary of Ororo field (OML 95) Gross Contingent Resources*

Recoverable Liquids

Recoverable Gas
















Gas BOE conversion factor: 1 barrel of oil equivalent = 5800 cu ft gas

*Under SPE Guidelines, the hydrocarbons are classified as Contingent Resources and will convert into Reserves upon finalisation of approvals and agreements with contractors. The valuation methodology used by Rockflow provides for the commercial producible resources to be defined rather than the technically producible oil.  Under the present oil price scenario this results in a modest change for the tail end volumes in relation to the volumetrics reported on 22nd April 2016.  

Review by Competent Person

In accordance with the guidelines of the AIM Market of the London Stock Exchange, the technical information contained in this announcement has been reviewed and approved by Tom Gunningham MA(Oxon) CEng MEI, a chartered petroleum engineer and reserves auditor for Rockflow Resources, who has over 27 years industry experience and meets the criteria of a qualified person under the AIM guidance note for mining and oil and gas companies.

Bobo Kuti, CEO of Sirius, commented:

"I am delighted to have received independent technical third-party confirmation of the material value we believe exists in the Ororo Field and support of the Company's chosen development strategy. Moreover, the field economics are robust at current oil prices. This is a major step forward toward finalising the funding and other measures necessary to bring the Ororo Field into first production."  

Convertible Loan of £500,000

Sirius is pleased to announce that it has secured a Convertible Loan (the "Loan") and has received the funds from existing shareholders for £500,000 to provide general working capital for the Company.

 Key terms of the Loan are as follows:

•     One year term;

•     Loan accrues 10% interest;

•     Lenders may elect to convert the Principal sum plus interest into new ordinary shares at a price of 0.35 pence per share (the "Conversion Price"); the conversion is subject to the Board receiving shareholder approval at Company's next AGM details of which will be sent out in due course.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.


Sirius Petroleum plc  


+44 (0) 20 3740 7460


Bobo Kuti / Simon Hawkins


Cantor Fitzgerald Europe


+44 (0) 207 894 7000


David Porter / Sarah Wharry


Gable Communications Limited


+44 (0) 20 7193 7463


John Bick

Email: [email protected]



Glossary of technical terms

1C                                           Low estimate Contingent Resources

2C                                           Best estimate Contingent Resources

3C                                           High estimate Contingent Resources

Bcf                                          Billion Cubic Feet

Contingent Resources       Resources in Ororo field which convert into Reserves when the necessary contracts and final approvals are in place 


CPR                                         Competent Persons Report

Bcf                                          Billion cubic feet

boe                                         Barrels of oil equivalent

Mscf                                       Thousand standard cubic feet

MMscfd                                 Million standard cubic feet per day

OML 95                                 Oil Mining Lease 95

STOIIP                                    Stock-tank Oil Initially in Place

Stb                                          Stock tank barrel


This information is provided by RNS
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