Sirius Petroleum PLC US$10m Revolving Prepayment Facility + Offtake (8497N)
August 14 2017 - 1:00AM
UK Regulatory
TIDMSRSP
RNS Number : 8497N
Sirius Petroleum PLC
14 August 2017
14 August 2017
Sirius Petroleum plc
(the "Company" or "Sirius ")
US$10 million Revolving Pre-payment Facility & Offtake
Agreement
Signed with BP Oil International Ltd ("BP")
Sirius Petroleum (AIM: SRSP), the investing company focused on
oil and gas exploration and development opportunities in Nigeria,
is pleased to announce that following completion of technical due
diligence on the Ororo field, the Company has entered into a US$10m
revolving pre-payment facility ("Pre-payment Agreement" or
"Agreement") and commercial offtake agreement ("Offtake Agreement")
in respect to the sales of the crude produced from the Ororo Field,
with BP Oil International, a subsidiary of BP (LSE: BP).
The Agreement provides for the Company to draw down up to US$10
million, in pre-payment finance following commencement of
production from the Ororo Field. The interest rate on any
pre-payment amount drawn down will be charged at Libor + 9% per
annum and will be repaid from crude oil sales.
Under the Agreement, Sirius can request that BP provides
pre-payment finance for either or both of the first two cargos of
crude oil, each for up to US$10 million, scheduled to be lifted in
500,000 barrel parcels or more. The prepayment facility will be
conditional upon the Ororo field achieving certain daily production
levels, which are lower than the flow rates previously achieved by
Chevron on Ororo 1, which have been underpinned by the recent
Competent Persons Report ("CPR").
BP Oil International Limited operates as a subsidiary of BP Plc,
a multinational oil and gas company and is one of the world's seven
oil and gas supermajors. It is a vertically integrated company
operating in all areas of the oil and gas industry, including
exploration and production, refining, distribution and marketing,
petrochemicals, power generation and trading. It also has renewable
energy interests in biofuels and wind power.
As of 31 December 2016, BP had operations in 72 countries
worldwide, produced around 3.3 million barrels per day of oil
equivalent, and had total proved reserves of 17.81 billion barrels
of oil equivalent.
Bobo Kuti, CEO of Sirius, commented:
"The revolving prepayment facility and offtake agreement with BP
supports the multi-well campaign on the Ororo field. It underpins
our strategy to develop Ororo along with our world class oilfield
service partners COSL, Schlumberger, and Add Energy. In addition,
the relationship with BP will enhance our development programmes in
Nigeria going forward."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via Regulatory Information Service
("RIS"), this inside information is now considered to be in the
public domain.
Enquiries:
Sirius Petroleum +44 20 3740 7640
Bobo Kuti / Jack Pryde
Cantor Fitzgerald Europe +44 20 7894 7000
Sarah Wharry
Gable Communications +44 20 7193 7463
John Bick srsp@gablecommunications.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IODBCGDIGUBBGRX
(END) Dow Jones Newswires
August 14, 2017 02:00 ET (06:00 GMT)
Sirius Petroleum (LSE:SRSP)
Historical Stock Chart
From Apr 2024 to May 2024
Sirius Petroleum (LSE:SRSP)
Historical Stock Chart
From May 2023 to May 2024