Sirius Petroleum progressing on Ororo field ahead of readmission to trading

Sirius Petroleum announced slightly larger losses at the half-year stage as it continued to make preparations to begin drilling at its Ororo field and transition towards an operating company.

The Nigeria-focused oil and gas development and production posted a six-month operating loss of $963,000, up from $698,000 in the year-ago period, having progressed on a seabed surey of the field licence area before it mobilised the COSL Power rig.

Yet the most significant development came after period-end on 30 June, when it inked a $10m revolving pre-payment facility and commercial offtake agreement in respect to the sales of the crude produced from Ororo with BP Oil International, a subsidiary of BP.

Two days afterwards, on 16 August it signed a Joint Operating Agreement with its partners to develop Ororo, marking its transition into an operating company. Hence the decision to ask for the suspension of its shares from trading, as required under AIM rules, as it sought approval from its shareholders.

In preparation for the above, Sirius was in the process of preparing an Admission Document and Notice of General Meeting, which would be sent to shareholders in due course.

During the period, the company also issued shares to raise £2m, obtaining a further £70,000 via loans, which were funeled towards the initial deposits on key equipment and long lead items and to cancel a loan agreement with Calvet International.

The company also announced the appointment of Peter Gregroy as chief operating officer. His primary responsibility would be for all operational areas of the Ororo field, the company said in a statement.

Meqanwhile, the company had also arranged for the provision of Offshore Service Vessels through Tidewater Marine International.