Sirius Petroleum acquires stake near-term producer

4th Dec 2018 08:28

(Sharecast News) - Sirius Petroleum has struck a deal that will provide the Nigeria-focused oil and gas outfit with access to near-term production growth and low-risk exploration potential.Sirius has agreed to acquire a 75% shareholding of Precision Energy's wholly-one subsidiary Precision Energy Tetra 109 and agreed to acquire a 40% equity and 80% economic interest in Tetrarch, which owns Tetra Petroleum Oilfield Services, giving it an effective indirect economic interest in 30% of the company's cash flows.Lastly, the AIM-listed development and production firm entered into a petroleum services contract to provide certain petroleum services to Atlas Petroleum and Summit Oil and Gas, the owners of the licence known as OML 109 on the Ejulebe field in shallow waters offshore Nigeria.Chief executive Bobo Kuti, said: "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."As of 0830 GMT, Sirius shares had ticked up 0.74% to 0.68p.