12th Feb 2015 11:18
LONDON (Alliance News) - Sirius Petroleum PLC Thursday said it has agreed to extend talks with Nima International Ltd about securing a GBP9.6 million convertible loan.
The company said it has mutually agreed with Nima to extend the completion date to March 16, from February 16, to allow both parties to complete outstanding work to complete the deal. Sirius is confident of securing the loan, but warned that there is no certainty a deal will be reached.
In addition, Sirius has re-appraised the Ororo field in Nigeria and said rig costs in the country have "significantly reduced" due to the lower oil prices and lower levels of drilling activity, resulting in a lower cost for the company to achieve first oil from the field.
The company will continue to prepare the field for drilling whilst finalising funding with Nima, and said the contracting and procurement process for the field will be ready to go once funding is secured.
"We are very grateful to shareholders for their continued patience and are working closely with Nima and the Equity providers, who remain fully committed, to conclude the funding. We believe that the project remains highly profitable, even in light of the overall economic conditions in the oil sector," said Chief Executive Bobo Kuti.
Sirius shares were up 0.5% to 7.69 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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