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03 Nov 2009
Strategic Partnership
Sirius (AIM: SRSP.L) is pleased to announce that it has signed a strategic partnership letter of intent with Nigerian based Dajo Oil Limited (“Dajo”) under which it is intended that the Company will work with Dajo to identify and negotiate an economic interest in marginal oil and gas field opportunities currently held by Shell Nigeria using their significant experience and contacts.
Upon the successful identification and acquisition of such an opportunity, it is intended that Dajo and the Company enter into a long-form joint venture agreement (the ‘JV agreement’). Pursuant to the JV agreement, it is intended that Sirius will act as the financial partner to the venture and provide 100% of the funding on any future marginal field opportunities. Sirius will own a 40% legal interest in the field and be entitled to a 80/20 preferential cash flow preceding the recovery of the Company’s initial capital investment loan to Dajo and, thereafter, receive 40% of the revenues generated under the venture. Sirius will not pay a farm-in fee for this opportunity.
Dajo will act as technical partner to the venture and a joint management committee will be set up between Sirius and Dajo to manage the opportunity, the procurement process, community relations and operational activities.
Dajo is an experienced Nigerian oil and gas company, which is currently developing a deep offshore block with Shell Nigeria Exploration and Production Company Limited (“SNEPCO”), OPL 322. Bobo -1X, which was drilled in block OPL 322, to a total depth of 5,173 metres in 2,479 metres of water. It is the second deepest well in offshore Nigeria, and encountered over 140 meters of hydrocarbon bearing sands. Dajo’s technical team is staffed by Efize.T.Domingo (Technical Director), who graduated from Nottingham University with a BEng (Hons) in Chemical Engineering and from Imperial College London MSc in Petroleum Engineering. Magerate Oiza Mordi (Director) graduated with a MBA in Oil & Gas from Dundee University, Scotland. Dajo’s management team has a proven track record in Nigeria and is pursuing marginal field opportunities with the major oil companies in Nigeria.
This opportunity is additional to the previously announced strategic partnership letter of intent agreements with RT5 Petroleum Limited and Bolad Energy Company and the Board is continuing its negotiations with each with a number of potential opportunities and is confident that the first marginal field will be secured within the previously announced timetable of late 2009 into early 2010.