19 Dec 2016
Sirius Petroleum (AIM: SRSP), the investing company focused on oil and gas exploration and development opportunities in Nigeria, announces that firm commitments have been received from new and existing shareholders in respect of subscriptions, in aggregate, for 170,000,000 new ordinary shares at a price of 0.5 pence per ordinary share (the “Subscriptions” and the “Subscription Shares”) to raise gross proceeds of £850,000 (approximately $1 million net of expenses). The Subscriptions are conditional upon receipt of funds and admission of the Subscription Shares to trading on AIM.
The net proceeds of the Subscriptions will be used for additional working capital purposes commensurate with the Company’s accelerated activities in Nigeria as it prepares to bring its Ororo field into first oil production, in conjunction with its Vendor Finance Consortium partners COSL Pan Pacific Drilling, Add Energy, and Schlumberger.
Application has been made for the Subscription Shares to be admitted to trading on AIM, which is expected to occur on, or around, 23 December 2016, subject to receipt of the Subscription proceeds. Following the issue of the Subscription Shares, the Company will have 2,258,029,523 ordinary shares of 0.25 pence each in issue. No ordinary shares are held in treasury. The figure of 2,258,029,523 may be used by the Company’s shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure Rules and Transparency Rules.
“This oversubscribed placing demonstrates the support we are receiving from new and existing shareholders in our strategy to get to first oil following the execution of the definitive agreements with global industry service providers. As we are now advancing with a range of agreements across a number of service areas, the proceeds of the placing will be applied toward our working capital requirements as we start to activate some provisional services ahead of the main work programme.”