Sirius Petroleum Plc has announced the granting of three-year extension by the Federal government to the Ororo Field Licence (OML 95) with effect from 1 May.
The investing company focused on oil and gas exploration and development opportunities in Nigeria, yesterday in a statement disclosed that the Federal Ministry of Petroleum Resources agreed to grant the Ororo Field Partners extension to the Ororo Field Licence (OML 95) with the conditional on the payment of a Renewal Fee of $500,000 by no later than 29 July 2016.
Sirius said that the Licence Renewal Negotiations have now been concluded between the Partners and the Ministry of Petroleum Resources and as a result will pay the Renewal Fee which is recoverable under the FTSA Agreement entered into between the Company, Guarantee and Owena Oil & Gas announced on 10 October 2011.
According to the statement, “as with all other costs incurred under the FTSA, the licence fee is cost recoverable from oil production.
“Sirius has received firm commitments from existing shareholders to raise aggregate funds of £500,000 ($640,000) before expenses (approximately £442,000 ($570,000) after expenses) to the issue of 200,000,000 new ordinary shares at an issue price of 0.25 per share (the “Subscription Shares” and the “Subscriptions”).
“The funds being raised are being utilised specifically to pay the Renewal Fee and to progress the work on the Ororo field. Pursuant to the placing it is expected that an application will be made for the admission of the placing shares to be trading on AIM (Admission). Settlement and Admission are expected to occur on or around the 20 July 2016.
“Funds raised for the Renewal Fee are in addition to the working capital requirement indicated in the Company’s recent Annual Report.
“The Directors will seek shareholder approval at the Company’s Annual General Meeting to obtain the relevant share authorities in relation to future working capital and project funding requirements. Details of the AGM will be sent to shareholders in due course.
“As stated in the recent Annual Results, the Board has received a proposal from a service provider for project funding but are comparing this to several competing vendor finance opportunities in order to secure the most optimal deal,” it stated.

READ ALSO  NNPC proposes new refineries