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05 Feb 2009
Sirius Petroleum PLC
Acquisition Update
Sirius Petroleum PLC (Ticker: SRSP.L) provides the following update on the status of its potential acquisitions.
The Company announced on 31 January 2008 (the “Announcement”), it expected to complete between one and three acquisitions, at least one of which would constitute a reverse takeover under the AIM Rules, in the 24 months following its Annual General Meeting, being on or before 4 March 2010. Sirius further announced that if it has not made an acquisition or acquisitions constituting a reverse takeover or otherwise implemented its investment strategy within 12 months of the date of the AGM, the Company’s trading facility on AIM would be suspended for six months and if in that period it did not make an acquisition or acquisitions or otherwise did not implement its strategy, its trading facility on AIM would be cancelled.
Subsequently on 20 August 2008, the Company’s shareholders approved in general meeting (“GM”) a number of proposals (the “Proposals”) pursuant to the Company’s implementation of its investment strategy which included a refined focus on seeking acquisitions not just in the natural resource sector, globally, but in the oil and gas sector in Nigeria, specifically. This implementation included new board members, conditional service agreements with local partners, a change of name and a fundraising. Further and as announced on 4 and 19 December 2008, the Company has also entered into strategic partnership letters of intent with two local Nigerian companies, raised further funds and has now established a Nigerian office to put it in the best position to conclude a transaction.
The Company considers the approval by its shareholders of the Proposals and subsequent progress to be the first steps in the implementation of its strategy as stated in the Announcement. Therefore, the Company wishes to re-state its intention to make an acquisition which constitutes a reverse takeover or otherwise make an investment in the oil and gas industry on or before 4 March 2010. Failure to successfully complete such an acquisition or investment by this date will result in suspension from trading on AIM for six months, followed by cancellation of the Company’s AIM listing.
As can be seen from the progress since the Announcement, the directors believe that they have made significant progress in executing its strategy and the completion of an acquisition. As stated in the Group’s results, the Company expects to be in a position to do so in calendar 2009.