Vendor Finance Contract Signed with COSL for Jack-up Rig
Wednesday 16 November 2016
Sirius Petroleum (AIM: SRSP), the investing company focused on oil and gas exploration and development opportunities in Nigeria, is pleased to announce that it has entered into a key vendor financed offshore drilling contract ("Vendor Finance Contract") with COSL Drilling Pan-Pacific Limited ("COSL"), for the provision of a high specification jack-up rig that will be utilised by the Company to drill a multi well campaign as part of its shallow offshore development strategy in Nigeria, commencing in the first half of 2017. This Vendor Finance Contract establishes the cornerstone and thereby major element of the operational financing for the Ororo project.
Under the terms of the Vendor Finance Contract, COSL will extend delayed invoice and payment terms to Sirius which will have the effect, dependent on successful drilling, of deferring a significant portion of the cost of the rig until after the Company commences the production of hydrocarbons, but is otherwise on normal industry terms. The contract envisages a drilling programme on the Ororo Field and could be expanded to include other potential offshore assets.