4th Dec 2018 14:12
LONDON (Alliance News) - Sirius Petroleum PLC on Tuesday said it agreed to acquire a 75% shareholding in Precision Energy Tetra 109 BVI Ltd.
Precision Energy Group will hold the remaining stake in Precision Energy Tetra.
In addition, the Nigeria-focused oil & gas company said Precision Energy Tetra will buy a direct 40% interest and up to 80% economic stake in Tetrarch Ltd.
Tetrarch is an 80% shareholder in Tetra Energy Services Ltd, which wholly owns Tetra Petroleum Oilfield Services Ltd. Tetra Petroleum has a contract to provide petroleum services to the owners of OML 109. OML 109 is an oil mining licence in shallow waters offshore Nigeria.
Current owners of OML 109 are Atlas Petroleum International Ltd, holding 70% stake, and Summit Oil & Gas Worldwide Ltd, which holds the reminder.
Upon completion of the transaction, Sirius expects to hold 30% indirect economic interest in Tetra Petroleum through its economic interest in Tetrarch.
The acquisition will enable Precision Energy Tetra to provide petroleum services to Tetrarch and therefore Tetra Petroleum in relation to the petroleum services contract, in which Sirius and its operational partners expect to take an active role.
There is only nominal consideration payable on the acquisition, Sirius said, which is conditional upon Sirius sourcing for Precision Energy Tetra some USD40 million of external debt funding.
The funds will be used to extend a minimum work programme commitment on the Ejulebe field, a producing field located in the North East corner of OML109.
"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," said Sirius Chief Executive Bobo Kuti.
Sirius Petroleum share were up 7.9% at 0.73 pence on Tuesday.
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