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Sirius Petroleum PLC (SRSP)

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Monday 26 November, 2012

Sirius Petroleum PLC

Operational Update

RNS Number : 9601R
Sirius Petroleum PLC
26 November 2012

26 November 2012

Sirius Petroleum plc

(the "Company" or "Sirius ")

Operational Update

Directorate Changes

Sirius Petroleum (AIM:SRSP), the investing company focussed on oil and gas exploration and development opportunities in Nigeria, updates its shareholders regarding its operating activities.

Update on Assets

Sirius is pleased to announce that, as a result of positive discussions regarding its funding strategy,   the Company has decided to accelerate its Field Development Plans ("FDPs") on the Ororo Field in OML 95 and, in addition, on one of the larger existing discoveries in an Oil Block located in the shallow waters of the Niger Delta Basin, over which Sirius has agreed terms and has exclusivity (the "Oil Block") as announced on 21 June 2012. The FDPs will focus on the logistics and available infrastructure of delivering crude oil to potential purchasers, along with timescales and the estimated cost of development.

Following completion of the FDPs, which will establish the optimum development strategy, and subject to the successful conclusion of its funding initiatives, the Company intends to execute the farm-in agreement for the Oil Block, following which the Company will work with its partners, to put both the Ororo Field and the Oil Block into production, as soon as is practicable.

Update on Funding Discussions

The Board is actively progressing its funding strategy via on-going discussions with several potential partners, which are expected to be concluded following completion of the FDPs. The Board is considering various financing structures, including, amongst other things, pre-financing and off-take arrangements.

Strategy to Build a Comprehensive Portfolio of Oil Assets

The Company's strategy continues to be the targeting of discovered oil fields in Nigeria, in partnership with both indigenous petroleum companies and bi-laterally with international oil companies operating in Nigeria. Sirius is confident that such partnerships will continue to deliver access to value enhancing opportunities with a view to the Company building a comprehensive portfolio of oil and gas assets. The Board will also take steps to secure the most appropriate form of financing for any potential acquisitions.

Board Changes

The Directors announce that Ed Johnson has stepped down from the Board with immediate effect and all options granted to him, as detailed in the announcement of 11 October 2011, have now lapsed. Toby Hayward, currently a non-executive director, has been appointed acting Chief Executive Officer with immediate effect.

Graham Porter has stepped down from the Board to pursue other interests. The Board would like to thank Graham for his contribution to the Company and wishes him well in his future endeavours.

The Board will keep under review its composition, particularly with regard to the level of technical experience it requires as the Company develops its assets.

Commenting, Toby Hayward, said: "We thank shareholders for their continuing patience whilst we pursue the optimum way in which to finance and develop our assets. Discussions with potential funders have also resulted in a more progressive approach to the development of the current assets over which Sirius has exclusive rights, and we are confident that our strategy will position the Company to leverage the value to shareholders from those oil and gas assets".




Sirius Petroleum plc   

Toby Hayward / Jamie Bligh, IR


+44 (0) 20 7747 5100

Strand Hanson Limited

James Harris / James Spinney


+44 (0) 20 7409 3494

Gable Communications Limited

John Bick / Justine James

+44 (0) 20 7193 7463


This information is provided by RNS
The company news service from the London Stock Exchange

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