Competent Persons Report on the Ororo Field & Convertible Loan of £500,000

08 Sep 2016

Sirius Petroleum Plc

(“Sirius” or the “Company”)

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:


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.


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