In a notice to the London Stock Exchange, Sirius Petroleum Plc, a Nigeria-focused oil and gas development firm has announced its plans to issue new ordinary shares of 28,571,428 representing 0.78 per cent of the firm’s enlarged issued share capital.
Sirius Petroleum Plc explained in a statement that the firm was issuing 28,571,428 new ordinary shares at 0.49 pence per share due to the conversion of £140,000 of the European High Growth Opportunities Securitisation Fund Convertible Note, which was announced on January 15, 2019.
“Application has been made for the conversion shares to be admitted to trading on AIM, which is expected to occur on or around February 8, 2019.
“Following the issue of the conversion shares, the company will have 3,676,479,139 ordinary shares of 0.25 pence each in issue. No ordinary shares are held in treasury
Sirius Petroleum Plc clarify that the 3,676,479,139 ordinary shares might be used by its shareholders as the denominator for the calculations by which they would determine if they were required to notify their interest in, or a change to their interest in the firm under the Financial Conduct Authority’s Disclosure and Transparency Rules.
Last month, Sirius Petroleum said it will continue to work with a third-party funder regarding the execution of a minimum work programme commitment on the Ejulebe field in Nigeria.
The company said it had been agreed to extend the initial 45-day period in which to complete a transaction to 15 February.
‘Sirius will update shareholders in due course once the funding has been completed,’ it added.
Sirius Petroleum agreed to buy a 75 percent stake in Precision Energy Tetra 109 last year December, gaining a role in the development of Nigeria‘s OML 109.
Under the agreement, Precision Energy Tetra 109, a subsidiary of Precision Energy, will purchase a direct 40 percent equity and up to 80percent economic interest in Tetrarch from Tetrarch Holdings, which controls Tetra Energy Services. Tetra Energy Services’ arm Tetra Petroleum Oilfield Services which is providing services at OML 109, site of the Ejulebe field.
“The proposed acquisition would be a significant addition to the Sirius portfolio and we look forward to working with the co-owners of the asset and our operational partners to boost production on the Ejulebe field. We are also excited to explore the EJ-WSW prospect, which, if successful, could potentially add material reserves,” Bobo Kuti, the CEO of Sirius, said.
The purchase price, which Sirius called “nominal,” includes $40 million of external debt funding from a third-party lender, which will finance the minimum work programme commitment on the Ejulebe field. The plans include a work-over of an existing well and a new development well, with options for two additional work-overs or sidetracks on existing wells. An exploration well is also set to be drilled on the nearby EJ-WSW prospect.
DIPO OLADEHINDE
