We are delighted to report that we have signed a subscription agreement with Anglo Tunisian Oil and Gas Limited ('ATOG').

Upon satisfaction of certain conditions, Sirius will subscribe for shares in ATOG to secure a 40% economic interest. Furthermore, subject to Sirius satisfying certain conditions and raising sufficient debt finance for the offshore development programme, Sirius will, pending local approvals, be granted an 80% economic interest in the offshore assets held by ATOG.

Portfolio summary

The ATOG portfolio comprises five onshore licences in the Ghadames basin, three of which are operated, and two offshore operated licences in the Gulf of Hammamet.

The portfolio is currently producing approximately 1,500 boepd from three onshore licences:li> One operated by ATOG (Bir Ben Tartar); Two operated by ENI (Adam and Borj el Khadra) and The increased capacity with the newly commissioned Nawarra gas pipeline ($1.2 billion investment by its owner) will facilitate increased production at the ENI operated licences, which was previously production constrained.

The portfolio contains gross 2P reserves and 2C contingent resources of c.21 mmboe; ATOG has secured a development funding facility and is executing a work programme aimed at increasing its production at its operated Bir Ben Tartar licence and ENI operated Adam field, through workover activity and the drilling of new infill wells; ATOG holds $14m of newly acquired and processed 3D seismic and ATOG has used this to prioritise low risk, step out drilling opportunities. Schlumberger has estimated that the operated onshore exploration licences, Sud Remada and Jenein, contain gross original oil in place of, respectively 472 mmbbls and 100 mmbbls; The offshore licences, Cosmos and Yasmin, contain two discoveries which flow tested at 5,700 bopd and 1,200 bopd respectively and Management estimates NPV10 of $110m (based on the Brent futures curve) attributable to net interests in 2P/2C reserves only, but with significant further upside. Also noting that the favourable nature of the Tunisian fiscal regime means that the NPV of our Tunisia assets has an asymmetric relationship with the prevailing oil price under which Sirius will benefit more from higher prices and have an improved downside protection in periods of lower prices.

Transaction summary

The subscription will be made through a wholly owned subsidiary of Sirius Petroleum plc ('Sirius'); Total acquisition consideration of $11.35m will be satisfied in stage payments through 2020 and 2021 and Once all completion conditions have been satisfied, Sirius will own a 40% shareholding in ATOG and, upon satisfaction of the additional offshore conditions, Sirius will have an 80% economic interest in the offshore licences.

Development Strategy

Onshore

The ATOG business plan for 2020/21 focuses initially on low-cost well site clean-up, equipment replacement and workover activity at the producing Bir Ben Tartar ('BBT') field, delivering immediate productivity gains and boosting production by 50%, followed by a progressive well infill drilling programme that management estimates could almost quadruple BBT production post the workover activities.

The Sud Remada permit surrounds the BBT field and is considered highly prospective. A total of 13 wells have been drilled, all encountering oil and gas, and a 2018 2D and 3D seismic programme has facilitated high grading of drilling candidates. Schlumberger has ascribed STOIIP of 472 mmbbls to the licence, which comes with a funded one well commitment.

The Jenein permit, located c.20kms west of the ENI operated Adam concession, contains a discovery well drilled in 2010 and several prospective structures, geologically analogous to producing wells on Adam, that have been identified based on existing 2D seismic. 3D seismic was acquired in 2018, the analysis of which should allow high grading of prospects. The licence carries a one well commitment and Schlumberger has estimated STOIIP of 100 mmbbls.

Offshore

The ATOG team will focus its attention on progressing the development of the onshore licences, with the support of our technical team. In anticipation of securing an 80% economic interest in the offshore licences, we will focus our team's attention on devising an optimal development solution for the two existing discoveries. The offshore licences, namely, Cosmos and Yasmin, contain two appraised discoveries, which achieved high initial flow rates, testing at 5,700 bopd (Cosmos) and 1,200 bopd (Yasmin).

Previous estimates provide an EUR (Estimated Ultimate Recovery) of 18mmbbls from the offshore discoveries while the concessions contain mapped but undrilled structures which provide significant resource upside. The Company is undertaking further work on the development plan to monetise these offshore licences. In addition, further exploration leads and prospects will be evaluated.

The Cosmos and Yasmin licences are located close to and are analogous to the adjacent Oudna field, which recovered 6mmbbls at an initial production rate of 25 kbpd and a recovery factor of 38%.

Investment Summary

Management estimates NPV10 of $110m (based on the Brent futures curve) attributable to net interests in 2P/2C reserves only, but with significant further upside. Also noting that the favourable nature of the Tunisian fiscal regime means that the NPV of our Tunisia assets has an asymmetric relationship with the prevailing oil price under which Sirius will benefit more from higher prices and have an improved downside protection in periods of lower prices.

As well as a low entry cost, the portfolio boasts an attractive mix of production, development and near field, low risk exploration. The previous owner (Medco) invested little capital during its 5-year ownership of the assets, providing significant opportunity in what is an underdeveloped portfolio.

High quality and very experienced teams in both ATOG and Sirius, incentivized to deliver profitable growth.

Business plan focused on delivering production growth and productivity improvements, before shifting to higher impact offshore development and onshore exploration.

All Tunisian regulatory approvals pertaining to the transaction are complete.

Tunisia Portfolio Overview Map: Working Interests ('WI') net to Sirius: Onshore: Bir Ben Tartar ('BBT') (Production Sharing Contract) existing production of 700 bopd (Operated). WI: 100%.

Adam (Concession) - production of 715 boepd. ENI Operated. WI: 5%.

Borj El Khadra (BEK) (Permit) - existing production of 35 boepd. ENI Operated. WI: 10%.

Jenein Centre (Permit), Operated. WI: 65%.

Sud Remada (Permit), Operated. WI: 100%.

Offshore: Cosmos (Concession). Discovery well flow tested at 5,700 bopd Contingent and Prospective resources. WI: 80%.

Yasmin (Concession). Discovery well flow tested at 1,100 bopd. WI: 100%.

We are delighted to secure this opportunity, particularly as it brings entitlement production and a low risk development programme to the Company. We also believe that there is considerable upside in the onshore portfolio, which is located in a proven, but underdeveloped hydrocarbon province, and we are excited about developing these offshore assets.

Future Acquisition Opportunities

As previously stated, the Company continues to work on opportunities in Nigeria, as well as other parts of Africa, which are each at varying stages of reappraisal and development following the period of volatility in the oil market. Despite that, and the challenges presented to us all by the pandemic, we continue to work with funding partners and our range of operating consortium partners on the optimum route to progress assets that meet our respective investment criteria. The Company will update shareholders on each project as and when it is commercially appropriate to do so.

Intention to seek a listing on AIM

In addition, the Company has commenced the process for the proposed admission of the Company's ordinary shares on London's AIM market in 2021. We will update shareholders on this process in due course.

Annual Report & Accounts

It is the intention of the Company to send the Annual Report and Accounts and Notice of Meeting to shareholders in order to hold the Company's Annual General Meeting this year.

We are very aware that there is much more to accomplish and we will continue to work hard to bring further opportunities to completion as we now have an excellent platform on which to achieve our goals for the Company and its stakeholders.

Contact:

Tel: +44 (0) 20 3967 4500

Email: enquiries@siriuspetroleum.com

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