Sirius Petroleum has declared the proposed acquisition of an interest in the Ke field in Nigeria.

Summary • Proposed acquisition of a 40 per cent. Participating Interest in the Ke Farmout Area in Nigeria which includes the Ke Field. • Potentially recoverable oil volumes associated with the Ke Field are expected to exceed 25 MMB. • The Ke Farmout Area, comprising 12,900 gross acres, was originally part of Oil Mining Lease No. 55 (OML 55) and was awarded to Del Sigma, an indigenous Nigerian company, in the DPR's Marginal Field round of 2003. • Placing of 313,860,327 new Ordinary Shares at 5 pence per share to raise £15,693,016 (approximately US$25,000,000) before expenses. • Proceeds of the Placing to provide the Group with funding for its working capital requirements for the development of the Ke Field. • Placing Shares will represent 30.73 per cent. of the Enlarged Share Capital following Admission. • The proposed acquisition, Admission and the Placing are conditional upon, inter alia, shareholder approval at the General Meeting of the Company, convened for 29 October 2010, and renewal of the Award by the DPR to Del Sigma of a 100 per cent. Participating Interest in the Ke Field, originally dated 25 February 2003, which is expected by 29 October 2010.

On 22 February 2010, the Board of Sirius Petroleum announced that the Company had entered into a conditional agreement, pursuant to which it will acquire a 40 per cent. Participating Interest in the Ke Field, and the surrounding Ke Farmout Area in Nigeria. The Ke Field is a small oil discovery located in swamp water in the southern part of the Niger Delta, approximately 5 km from the Gulf of Guinea. The field was originally discovered in 1965 by Chevron, which retains a small royalty interest in any production income from the Ke Farmout Area. The Ke Farmout Area, comprising 12,900 gross acres was originally part of Oil Mining Lease No. 55 (OML 55) and was awarded to Del Sigma, an indigenous Nigerian company, in the DPR's Marginal Field round of 2003.

In view of the size and nature of the Acquisition and its associated funding commitments, it is deemed to be a reverse takeover of the Company under the AIM Rules. Accordingly, completion of the Acquisition and the coming into effect of the Joint Operating Agreement is conditional on, among other things, receiving the approval of Shareholders, such approval to be sought at the GM, notice of which is set out within the Admission Document.

Tags: Sirius Petroleum