Sirius buys Precision stake, takes role in OML 109

Sirius Petroleum has agreed to buy a 75% stake in Precision Energy Tetra 109, gaining a role in the development of Nigeria‘s OML 109, the company announced on Tuesday.

Under the agreement, Precision Energy Tetra 109, a subsidiary of Precision Energy, will purchase a direct 40% equity and up to 80% economic interest in Tetrarch from Tetrarch Holdings, which controls Tetra Energy Services. Tetra Energy Services’ arm Tetra Petroleum Oilfield Services is providing services at OML 109, site of the Ejulebe field.

“The proposed acquisition would be a significant addition to the Sirius portfolio and we look forward to working with the co-owners of the asset and our operational partners to boost production on the Ejulebe field. We are also excited to explore the EJ-WSW prospect, which, if successful, could potentially add material reserves,” Bobo Kuti, the CEO of Sirius, said.

The purchase price, which Sirius called “nominal,” includes USD 40 million of external debt funding from a third-party lender, which will finance the minimum work programme commitment on the Ejulebe field. The plans include a workover of an existing well and a new development well, with options for two additional workovers or sidetracks on existing wells. An exploration well is also set to be drilled on the nearby EJ-WSW prospect.