Sirius Petroleum Mobilises Rig To Start Ororo Field Drilling Programme

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LONDON (Alliance News) - Nigeria-focused oil and gas company Sirius Petroleum PLC said on Monday its rig partner COSL has gained location approval for the Ororo-2 and Ororo-3 wells and has started mobilising its jack-up rig for delivery to the Ororo Field, offshore Nigeria.

In addition, COSL will deploy its COSL Force rig instead of the COSL Power, as the Force jack-up rig has a rated operating water depth of 375 feet and a rated drilling depth of 30,000 feet.

Drilling of the Ororo-2 well, which will penetrate all of the D sands is expected to start in April, in a location close to the Ororo-1 well.

The Ororo-2 well is expected to initially produce 2,700 barrels of light oil and six million cubic feet per day of gas, with a mid case net present value of USD96 million, according to a competent person's report by Rockflow Resources.

Also, Sirius has amended terms for COSL to use the Force jack-up rig on the Ororo 2 and Ororo 3 drill programs for the lump sum of USD9.0 million, on the assumption that the work duration doe not exceed 90 days from the spud of the first well in the program. If that duration is exceeded, daily rates will apply.

"We are delighted to be informed that COSL has finally secured the confirmation from the Marine Warranty Surveyor of the acceptance of the surface location of Ororo-2 and Ororo-3 wells enabling us to announce the mobilisation of the COSL Force jack-up rig. This is a milestone for Sirius as we embark with our operational partners on the first of our drilling programs," said Chief Executive Bobo Kuti.

Shares in Sirius Petroleum were up 11% at 0.94 pence on Monday.

By Dayo Laniyan; [email protected]

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