12th Jul 2016 09:50
LONDON (Alliance News) - Sirius Petroleum PLC on Tuesday said its Ororo field licence has been renewed for a further three years, subject to a USD500,000 renewal fee, which it will raise by issuing 200.0 million shares to existing shareholders.
Sirius Petroleum said negotiations have now concluded with the Nigerian Federal Ministry of Petroleum Resources, and the governmental body has agreed to grant the Ororo Field Partners a three-year extension to the Ororo field licence in Nigeria, with effect from May 1, 2016.
Sirius Petroleum said the renewal of the licence is conditional on the payment of a USD500,000 renewal fee, which must be paid to the governmental body no later than July 29 and which Sirius Petroleum has agreed to pay in line with its agreement with the other Ororo field partners.
Sirius Petroleum said it will raise the money through a fundraise, having already received firm commitments from existing shareholders to raise GBP500,000, or USD640,000 through issuing 200.0 million shares at 0.25 pence per share. The fundraise equals about 10% of Sirius's existing market capitalisation.
Shares in Sirius Petroleum were down 1.8% at 0.270p on Tuesday morning, having bounced back from an opening low of 0.250p.
Sirius Petroleum said the funds will be used to pay the renewal fee as well as to progress work on the Ororo field. The shares are expected to be admitted to trading on July 20.
By Hannah Boland; [email protected]; @Hannaheboland
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