27th Sep 2016 10:29
LONDON (Alliance News) - Sirius Petroleum PLC on Tuesday said it remains focused on securing project funding to drill a well at the Ororo field in Nigeria, as its pretax loss narrowed.
Sirius is working on securing funding to drill the Ororo-2 well at the project. The company received a competent person's report on Ororo earlier this month which it said confirmed the significant potential of the field.
That report showed there is between 7.7 million and 20.0 million barrels of oil to be potentially targeted under a development programme. The report also stated a mid-case net present value of USD49.2 million, based on an oil price of USD50 per barrel for the life of the field. The mid-case scenario implies peak oil production of 6,000 barrels and peak gas production of 25.0 million standard cubic feet per day.
Sirius Chairman Jack Pryde said he remains confident the company is well-positioned to secure the necessary project funding "given the underlying quality of the Ororo asset", in addition to the progress made by its partners in Nigeria in moving forward with preparatory work on the project.
In the first half, a decline in operating and administrative costs meant Sirius reported a pretax loss of GBP702,000 in the six months to June 30, narrowed from a GBP2.1 million loss a year prior. It made no revenue.
Sirius Petroleum shares were down 6.2% at 0.375 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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