O&G developer Sirius Petroleum to acquire stake in Nigeria oil project

UK’s oil and gas exploration and development company, Sirius Petroleum Plc has recently inked a deal to acquire stakes in an oil project in Nigeria. As per sources, Sirius has agreed to obtain 75% of Precision Energy Tetra, which owns both economic interest (80%) and equity interest (40%) in Tetra Petroleum. Tetra Petroleum has a services contract with the owners of Nigeria’s OML 109 (Ejulebe field) asset.

Sources suggest that Sirius, following cost recovery, will attain an indirect 30% economic interest in the cash flows of Tetra Petroleum, despite the firm’s prior commitment of sourcing $40 million of debt funding from a third-party investor, to cover the costs of the minimum work program at the Ejulebe field. The funding is anticipated to be secured directly in contrast to the cash flows generated from the work program, cite sources.

For the record, Ejulebe is located in the North-East corner of OML 109, nearby the Ororo field discovery where Sirius had previously completed a Mechanical Earth Model.

As per a statement, Sirius claims that Ejulebe field hosts some 15 hydrocarbon sustaining horizons, capable of producing oil and non-associated and associated gas (including condensate).

The estimated work program will include new side-tracks, work-over operations, and new wells in the first stage, aiming to boost the field’s production up to 5,000 barrels per day, followed by a phase of exploration in the EJ-WSW prospect area.

Bobo Kuti, CEO, Sirius, was quoted saying that the proposed acquisition would be a significant addition to Sirius’ portfolio. He said that the company is looking forward to working with the co-owners of the asset and its operational partners to increase production on the Ejulebe field. Kuti added that the company is thrilled to discover EJ-WSW’s prospect, which, if successful, could significantly add material reserves to the region.

As per recent market reports, Sirius’ shares were seen surging by 4.68%, changing hands at 0.74p.