We are delighted to report that we have signed a subscription agreement with
Upon satisfaction of certain conditions, Sirius will subscribe for shares in ATOG to secure a 40% economic interest. Furthermore, subject to Sirius satisfying certain conditions and raising sufficient debt finance for the offshore development programme, Sirius will, pending local approvals, be granted an 80% economic interest in the offshore assets held by ATOG.
Portfolio summary
The ATOG portfolio comprises five onshore licences in the Ghadames basin, three of which are operated, and two offshore operated licences in the Gulf of Hammamet.
The portfolio is currently producing approximately 1,500 boepd from three onshore licences:li> One operated by ATOG (
The portfolio contains gross 2P reserves and 2C contingent resources of c.21 mmboe; ATOG has secured a development funding facility and is executing a work programme aimed at increasing its production at its operated
Transaction summary
The subscription will be made through a wholly owned subsidiary of
Development Strategy
Onshore
The ATOG business plan for 2020/21 focuses initially on low-cost well site clean-up, equipment replacement and workover activity at the producing
The Sud Remada permit surrounds the BBT field and is considered highly prospective. A total of 13 wells have been drilled, all encountering oil and gas, and a 2018 2D and 3D seismic programme has facilitated high grading of drilling candidates. Schlumberger has ascribed STOIIP of 472 mmbbls to the licence, which comes with a funded one well commitment.
The Jenein permit, located c.20kms west of the ENI operated Adam concession, contains a discovery well drilled in 2010 and several prospective structures, geologically analogous to producing wells on Adam, that have been identified based on existing 2D seismic. 3D seismic was acquired in 2018, the analysis of which should allow high grading of prospects. The licence carries a one well commitment and Schlumberger has estimated STOIIP of 100 mmbbls.
Offshore
The ATOG team will focus its attention on progressing the development of the onshore licences, with the support of our technical team. In anticipation of securing an 80% economic interest in the offshore licences, we will focus our team's attention on devising an optimal development solution for the two existing discoveries. The offshore licences, namely, Cosmos and Yasmin, contain two appraised discoveries, which achieved high initial flow rates, testing at 5,700 bopd (Cosmos) and 1,200 bopd (Yasmin).
Previous estimates provide an EUR (Estimated Ultimate Recovery) of 18mmbbls from the offshore discoveries while the concessions contain mapped but undrilled structures which provide significant resource upside. The Company is undertaking further work on the development plan to monetise these offshore licences. In addition, further exploration leads and prospects will be evaluated.
The Cosmos and Yasmin licences are located close to and are analogous to the adjacent Oudna field, which recovered 6mmbbls at an initial production rate of 25 kbpd and a recovery factor of 38%.
Investment Summary
Management estimates NPV10 of
As well as a low entry cost, the portfolio boasts an attractive mix of production, development and near field, low risk exploration. The previous owner (Medco) invested little capital during its 5-year ownership of the assets, providing significant opportunity in what is an underdeveloped portfolio.
High quality and very experienced teams in both ATOG and Sirius, incentivized to deliver profitable growth.
Business plan focused on delivering production growth and productivity improvements, before shifting to higher impact offshore development and onshore exploration.
All Tunisian regulatory approvals pertaining to the transaction are complete.
Tunisia Portfolio Overview Map: Working Interests ('WI') net to Sirius: Onshore:
Adam (Concession) - production of 715 boepd. ENI Operated. WI: 5%.
Borj El Khadra (BEK) (Permit) - existing production of 35 boepd. ENI Operated. WI: 10%.
Jenein Centre (Permit), Operated. WI: 65%.
Sud Remada (Permit), Operated. WI: 100%.
Offshore: Cosmos (Concession). Discovery well flow tested at 5,700 bopd Contingent and Prospective resources. WI: 80%.
Yasmin (Concession). Discovery well flow tested at 1,100 bopd. WI: 100%.
We are delighted to secure this opportunity, particularly as it brings entitlement production and a low risk development programme to the Company. We also believe that there is considerable upside in the onshore portfolio, which is located in a proven, but underdeveloped hydrocarbon province, and we are excited about developing these offshore assets.
Future Acquisition Opportunities
As previously stated, the Company continues to work on opportunities in
Intention to seek a listing on AIM
In addition, the Company has commenced the process for the proposed admission of the Company's ordinary shares on
Annual Report & Accounts
It is the intention of the Company to send the Annual Report and Accounts and Notice of Meeting to shareholders in order to hold the Company's Annual General Meeting this year.
We are very aware that there is much more to accomplish and we will continue to work hard to bring further opportunities to completion as we now have an excellent platform on which to achieve our goals for the Company and its stakeholders.
Contact:
Tel: +44 (0) 20 3967 4500
Email: enquiries@siriuspetroleum.com
(C) 2020 Electronic News Publishing, source