LONDON – Sirius has entered into a Financial and Technical Services Agreement (FTSA) with Owena Oil and Gas concerning the marginal Ororo oil field off Nigeria.
Sirius has committed to fund preparation of a Competent Person’s Report and some additional studies including an Environmental Impact Assessment, and a site survey to finalize the drilling program.
These tasks are due to be completed before Jan. 31, 2012. Thereafter, Sirius has the option to take a 40% interest in the field.
Ororo is in Oil Mining Lease 95 offshore Ondo State, in water depths ranging from 23-27 ft (7-8.2 m). Chevron discovered the field in 1986 with the Ororo-1 well, which penetrated 197 ft (60 m) of hydrocarbons in 12 sandstone reservoirs at points close to the crest of each reservoir structure.
The well tested 2,200 b/d and 600 b/d of oil from two separate zones. Two more tested gas, while eight zones remain untested. Chevron acquired 2D and 3D seismic over the field.
The most recent recoverable reserves estimate, from 2006, was more than 20 MMbl gross.
Closest producing fields are Mina, Isan, and West Isan, all operated by Chevron and 4-6 km (2.5-3.7 mi) from Ororo, providing potential for a low cost tie-in.
Owena is the state-owned entity formed to hold interests in Ondo State’s oil and gas assets. The other partner in Ororo is Nigerian company Guarantee Petroleum, designated as operator.
If Sirius decides to proceed to field development, Sirius will jointly operate the field with Guarantee and Owena and fund 100% of the costs.
Subject to rig availability, production from Ororo field could start next summer.