Sirius Secures Off-Take Deal with Glencore

Sirius Petroleum reported Friday that it has secured up to $65 million in funds for the development of near-term production assets located offshore Nigeria.

Sirius said it had made an 'exclusivity off-take agreement' with Glencore Energy UK that includes provision for a pre-financing facility of up to $65 million that will see Sirius deliver up to 60,000 barrels of crude oil per day to Glencore while Glencore has exclusivity to market this oil on behalf of Sirius for a period of three years.

Sirius said that it intends to focus its initial drilling activities on the re-entry of the Ororo-1 well, located in the Ororo field, which sits in shallow water of between 23 and 27 feet offshore Nigeria. Sirius owns 40 percent of the field.

The field was discovered in 1986 when Chevron drilled the Ororo-1 well, which tested at approximately 2,895 barrels per day of light crude oil (43-degree API).

Toby Hayward, a non-executive director at Sirius, commented in a statement:

"Our partnership with a major multinational oil trading company is transformational for Sirius, and Glencore's invaluable expertise marks a fundamental step in our strategy to put our initial assets into production and to build a portfolio of highly valuable oil assets."


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