Sirius Petroleum Plc
(“Sirius” or “Company”)
Execution of Senior Loan Facility Agreement with Trafigura
London, 27 January 2022: Sirius, an Africa focused oil & gas production and development company, is pleased to update shareholders on the funding of the Company’s production and development transaction in respect of OML 65 in Nigeria.
On 14 May 2021, the Company announced that credit approval had been secured for a senior funding facility with a leading global commodity trading company, which would form the major part of the funding required to deliver Phase 1 of the Approved Work Programme (“AWP”) on the OML 65 block, onshore Nigeria. Phase 1 of the AWP will involve the further development of the Abura field, which is currently producing over 10,500 bopd, comprising a planned nine well drilling programme, estimated to boost production from the Abura field by up to an additional 11,000 bopd.
Sirius is pleased to announce that it has now executed a Senior Loan Facility Agreement (the “Agreement”) with Trafigura PTE Ltd, a company within the Trafigura Group (“Trafigura”), to fund Phase 1 of the development of the Proven and Probable Reserves of 51mmbbls¹ on the OML 65 licence. The Facility Agreement provides for up to US$200m, completion subject to customary conditions precedent, to be drawn in tranches and deployed toward the further development of the producing Abura field.
Bobo Kuti, CEO of Sirius, said: “The Senior Loan Facility with Trafigura marks a milestone for the development of OML 65 and Phase 1 is designed to deliver a significant uplift in production from the Abura field. In addition, the option to increase the facility to US$200m supports our plans for Phase 2 of the development programme for the block. Trafigura is one of the world’s leading commodity trading companies and has extensive knowledge and experience of the Nigerian upstream industry. We look forward to achieving financial close on the OML 65 transaction imminently and commencing the first phase of the approved work programme to boost production at the Abura field.”
Visit: www.trafigura.com
About OML 65:
OML 65 is a producing onshore block with 2P reserves of 51 mmbbls, according to a Gaffney Cline & Associates June 2021 CPR:
- The existing producing field, Abura, has been in production since the 1970s, has been ascribed 16.2 mmbbls remaining 2P reserves and is currently producing over 10,500 bopd.
- OML 65 also contains two further discovered fields with an estimated 34.9 mmbbls additional 2P reserves, Owopele and Osioka. The fields have not been developed to date and will form part of the forward work programme.
- In addition, there are two targeted deeper prospects at Abura and Osioka containing an additional 227mmbbls oil in place.
- The existing production facilities and infrastructure servicing the Abura field are capable of handling up to 40,000 bopd.
- Sirius is a 30 per cent shareholder in the joint venture company, COPDC Petroleum Development Company Limited (“COPDC”), which has executed agreements with NNPC (Nigeria National Petroleum Corporation) regarding the development of the OML 65 licence, onshore Nigeria.
Ends.