Sirius Petroleum updates its shareholders having reviewed its strategy with regard to its pipeline of assets and funding for the Ororo Field.
Ororo Field located in OML 95
In light of the current share price and economic climate, the Directors have reviewed the potential dilution to shareholders in raising USD $25m through a combination of new equity and a convertible loan structure to fund the Ororo-2 well. The Sirius Board has concluded that whilst the Ororo Field remains profitable at the current oil price, if the funds needed were raised directly by Sirius Petroleum Plc there would be significant dilution of existing shareholders interests and this would not be in the best interests of the Company's existing shareholders. On a fully diluted basis, the existing shareholders would own only a small minority of the Company's enlarged equity post investment.
Consequently the Directors of Sirius, in conjunction with Nima International Limite, an affiliate company of Levant Energy Limited, have agreed to consider alternative funding structures for the Ororo Field. These include Nima providing funding to Sirius Ororo ('OML 95') Limited, a wholly owned subsidiary of Sirius which directly owns OML 95, or obtaining funding at the project level. The Directors are also considering a range of alternative structures including debt structures, which are less dilutive than the proposal previously considered.