Introduction

OML 109 is an Oil Mining Licence in shallow waters offshore Nigeria, initially awarded in 1991 as an Oil Prospecting Licence to Atlas Petroleum Ltd under the indigenous sole risk fiscal regime and as such has no government participation. In 1996 it was successfully converted to OML109, and in 2017 the licence was formally extended by the Nigerian government for a period of 20 years.

OML 109 is located approximately 30km due south of OML 95, where the Ororo field is located. Encompassing 191,000 acres or 773 square kilometres, the OML 109 block has only been addressed with three exploration wells in its entire history, the first in 1966. Extensive oil and gas infrastructure exists in and around the block, including that of the Ejulebe field.

The Ejulebe field comprises some 15 hydrocarbon-bearing horizons, producing oil, associated and non-associated gas (including condensate). The field has produced approximately 14 mmbbls since 1998, is currently producing c.250 bbl/d and has gross remaining 2P reserves of 4.7 mmbbls, according to the CPR.

The EJ-WSW and EJ-SW exploration prospects, which according to the CPR contain respectively gross unrisked P50 prospective resources of 32-38 mmboe and 32-53 mmboe are close to the Ejulebe field and are expected to have similar reservoir characteristics to the Ejulebe field.

The wider OML 109 “Joint Exploration and Development Area” contains prospects and leads that have been ascribed gross unrisked P50 prospective resources of 266mmboe, according to a Resource Review completed by Panterra Geoconsultants in February 2018.

Change of Interests

Current owners of OML 109 since 1996 are Atlas Petroleum International Limited (“Atlas”) (70%) (Operator) and Summit Oil & Gas Worldwide Ltd (“SOGW”) (30%).

Atlas and SOGW have entered into the PSC with TPOS, a wholly owned subsidiary of Tetra (owned by Tetrarch 80% and Fomak Limited 20%), relating to the provision of services for the exploration, development and production of hydrocarbons from OML 109. Tetra is an indigenous oil services company, which has been providing the services to date.

Sirius JV has agreed to acquire a 40% equity interest in Tetrarch from Tetrarch Holdings Limited for a nominal consideration, and is intended to provide services to Tetrarch in relation to the PSC. This acquisition is not subject to any governmental consent, but compliance with local content regulations will be required.

Sirius will secure its 30% beneficial equity interest in Tetrarch via the acquisition of 75% of Sirius JV.

Development Plan

The Ejulebe work program is separated into two phases. Stage A is designed to boost current production on the Ejulebe Field from 250 barrels of oil per day to over 5,000 bopd, by providing a workover on one existing well and the drilling of one new development well EJ-9 and, as an option, two additional work-overs or side-tracks of existing wells.

Stage B of the program is one exploration well on the EJ-WSW prospect which holds gross unrisked P50 resources of 32-38 mmboe.

Operators:

Summit Oil＆Gas Worldwide Ltd(Nigeria): 30%

Atlas Oranto Petroleum International Limited(Nigeria): 70%

Contractors:

Tetra Petroleum Oilfield Services Ltd(Nigeria): provision of services for the exploration, development and production of hydrocarbons from OML 109.