29th Sep 2014 10:33
LONDON (Alliance News) - Sirius Petroleum PLC Monday said it expects to secure funding for the first phase of development at the Ororo oil field in Nigeria as it continues to evaluate further off-shore acquisitions.
It narrowed its pretax loss to USD2.1 million in the six months ended June 30, from a USD3.3 million loss in the first-half of 2013. The narrowed loss is due to a reduction in financing costs to USD658,000 from USD2.1 million in the first-half of 2013.
The company generated no revenue, with these results reflecting the costs incurred during the period to evaluate the optimum field development strategy of the Ororo Field, it said.
Sirius, an investing company focussed on oil and gas exploration and development opportunities in Nigeria, entered into a financial and technical services agreement with Owena Oil and Gas Ltd and Guarantee Petroleum Co Ltd in relation to investment in the Ororo oil field.
Sirius has a 40% working interest in the Ororo oil field and has conducted initial work, including community relations initiatives with Owena and seeking approval for permits to undertake drilling activities, it said.
"The underlying quality of our assets and the progress made by the management team lead me to believe that Sirius will conclude the funding of the first phase of development of the Ororo field," said Chairman Jack Pryde.
Sirius also has entered into an agreement with BTG Pactual Commodities (UK) LLP for the marketing of crude oil from the Ororo Field, the company said in a statement.
"The strategy for Sirius remains to acquire off-shore assets. Specifically, we will target assets which have been drilled but do not tie-in to any onshore infrastructure, do not have significant farm-in fees and where we have the right to operate and to market the crude oil produced," he added.
Sirius saw its shares drop 7.4% to 2.27 pence per share Monday morning following the announcement.
By Joshua Warner; [email protected]; @JoshAlliance
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