22nd Apr 2016 09:25
LONDON (Alliance News) - Sirius Petroleum PLC Friday said a report from independent petroleum consultants Rockflow Resources Ltd has confirmed the "significant potential" of the Ororo field, offshore Nigeria, and Sirius has filed for permits and agreements in anticipation of the rig mobilisation for the Ororo field.
Sirius engaged Rockflow to produce a competent person's report on Ororo to assist it with discussions with potential funding providers.
Rockflow has reported a gross mid-to-high case liquid hydrocarbon volume range for the Ororo field of 7.65 million stock tank barrels to 20.48 million stock tank barrels. This compared to previous estimates of 10.08 million stock tank barrels to 12.87 million stock tank barrels.
Additionally, Rockflow has estimated volumes of gas of 99.34 to 133.95 billion cubic feet.
Sirius said the potential to exploit gas in addition to the oil revenue has generated interest from international oil and gas companies to secure and purchase such gas in the form of compressed natural gas and natural gas liquids.
The company said that, whilst the low oil price environment has made it difficult for companies in the oil and gas sector to attract funding, it is encouraged to be currently considering several funding options. "Although conversations with potential funders remain subject to binding terms being presented, the Directors remain optimistic that the company will secure the necessary funds to achieve commencement of production," Sirius said.
"We are delighted that Rockflow has independently confirmed the significant potential of the Ororo field over and above our initial expectations. It is also an important precursor to attracting the necessary funding. We are pleased to have identified additional potential revenue streams through gas commercialisation which is in line with Nigeria's policy on gas flaring and also our objective to be a high-quality operator," Chief Executive Officer Bobo Kuti said in a statement.
Shares in Sirius were up 4.6% at 0.340 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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