25th Feb 2019 14:27
LONDON (Alliance News) - Shares in Sirius Petroleum PLC were suspended from trading on Monday as the company announced a reverse takeover deal to enable the execution of a work programme commitment on the Ejulebe field, offshore Nigeria.
The Nigeria-focused oil & gas company said it is in advanced discussions for funding which will conclude a facility to be deployed towards the project.
The deal is conditional on Sirius having arranged for debt funding to be provided to fund certain capital expenditure on the Ejulebe field.
"The proposed debt provider views the transaction positively and has agreed that the transaction should now proceed on the basis that Sirius be both the borrower and guarantor of the proposed facility," the company said.
The company's shares will remain suspended until an admission document is published or Sirius backs out of the deal.
Last week the company said it was finalising a financing deal with an unnamed fund to complete the work programme.
In a separate statement, Sirius said that it has been notified by Shelf Drilling that the Adriatic-1, currently stationed in the adjacent licence to the Ororo field in Nigeria, is approaching total well depth for the incumbent operator.
In order to preserve its licence on the Ororo field, Sirius needs to bring it into production by May 1.
"In the unlikely event that there are any unforeseen delays and the licence does approach its expiry date, the company would seek a further extension to the term of the licence, which has already been granted on two previous occasions," the firm added.