Nigeria-focused operator Sirius Petroleum has completed its due diligence regarding the proposed acquisition of a stake in the shallow-water OML 109 block offshore Nigeria.
Sirius said on that it was finalizing the financing with a dedicated fund. In addition, Sirius Petroleum is awaiting final block partner consents to complete the transaction.
The company added that the partners mutually agreed with Sirius to extend the transaction period for a further 45 days until March 31.
To remind, Sirius agreed to acquire a 75% stake in Precision Energy Tetra 109 (Sirius JV) from Precision Energy Group (PEG) back in early December 2018.
Under the acquisition agreement, the company will pay only a nominal consideration of £1 payable on the acquisition, which is conditional upon Sirius JV sourcing for $40 million of external debt funding.
The funds will be deployed towards the execution of a minimum work program commitment on the Ejulebe field, a producing field located in the northeast corner of OML 109.
OML 109 is an Oil Mining License in shallow waters offshore Nigeria located approximately 30km south of OML 95, where the Ororo field is located.
Encompassing 191,000 acres or 773 square kilometers, the block has only been addressed with three exploration wells in its entire history, the first in 1966. Extensive oil and gas infrastructure exists in and around the block, including that of the Ejulebe field.
The field comprises some 15 hydrocarbon-bearing horizons, producing oil, associated and non-associated gas with gross remaining 2P reserves of 4.7 mmbbls.
The Ejulebe work program is separated into two phases. Stage A is designed to boost current production on the Ejulebe Field from 250 barrels of oil per day to over 5,000 bopd, by providing a workover on one existing well and the drilling of one new development well EJ-9 and, as an option, two additional work-overs or side-tracks of existing wells.
Stage B of the program is one exploration well on the EJ-WSW prospect which holds gross unrisked P50 resources of 32-38 mmboe.