Savannah Petroleum PLC Signature of Implementation Agreement (9503O)
February 04 2019 - 2:00AM
UK Regulatory
TIDMSAVP
RNS Number : 9503O
Savannah Petroleum PLC
04 February 2019
4 February 2019
Savannah Petroleum PLC
("Savannah" or "the Company")
Signature of Seven Energy Transaction Implementation
Agreement
Savannah Petroleum PLC, the British independent oil & gas
company focused around activities in Niger and Nigeria, is this
morning pleased to announce that it has entered into an
implementation agreement with, inter alia, Seven Energy
International Limited ("Seven Energy"), certain other subsidiaries
of Seven Energy (together, the "Seven Group") and certain of the
creditors of the Seven Group (the "Implementation Agreement").
The Implementation Agreement is legally binding and details the
legal terms and steps according to which the acquisition of the
Seven Assets, as initially detailed in the Company's AIM Admission
Document dated 21 December 2017 and as amended by the Company's
RNS's of 20 September 2018 and 21 December 2018, will be
implemented (the "Seven Energy Transaction" or the "Transaction").
The Implementation Agreement includes various agreed legal
documents required to complete the Transaction, and also includes
provisions which commit the parties to support and deliver the
Transaction (including the restructuring of Seven Group intra-group
debt and triggering the controlled insolvency process in the Seven
Group).
As a result of signing the Implementation Agreement, Savannah
has agreed to provide further liquidity to the Seven Group during
the restructuring period by way of an increase in the size of the
Liquidity Facility to up to US$28m. The Liquidity Facility is a
super senior secured revolving credit facility of an initial US$20m
and was put in place in November 2017 alongside the signature of
the Lock-up Agreement. Certain advisory fees incurred by the Seven
Group which become payable upon signature of the Implementation
Agreement are expected to be funded through the increased Liquidity
Facility.
Good progress continues to be made in relation to the remaining
Transaction workstreams, including, inter alia, the receipt of
Ministerial Consent. The Company continues to expect that the
Transaction will complete during Q1 2019, and the publication of a
Supplemental Admission Document will follow in due course. Further
updates relating to the Transaction will be published as
appropriate.
Andrew Knott, CEO of Savannah Petroleum plc, commented:
"The signing of the Implementation Agreement is a very important
milestone in the Seven Energy Transaction, moving us closer to
concluding this transformational acquisition. I would like to take
this opportunity to thank all the parties involved, including the
Savannah and Seven Energy teams as well as our advisors for their
hard work in delivering this achievement. The remaining legal and
procedural Transaction workstreams are now subject to a pre-agreed
sequence of events which will now commence. We expect to receive
Ministerial Consent shortly and remain highly confident that the
Transaction will complete during Q1 2019. I look forward to
providing further updates on the Transaction in due course."
Unless otherwise defined, capitalised terms in this announcement
have the same meaning ascribed to them as in the Company's
Admission Document dated 22 December 2017.
It should be noted that whilst the vast majority of steps
detailed in the Implementation Agreement are procedural, the
cooperation of certain third parties will be required to implement
the Transaction which the Company is confident will be
forthcoming.
For further information contact:
Savannah Petroleum +44 (0) 20 3817 9844
Andrew Knott, CEO
Isatou Semega-Janneh, CFO
Jessica Ross, VP Corporate Affairs
Strand Hanson (Nominated Adviser) +44 (0) 20 7409 3494
Rory Murphy
James Spinney
Ritchie Balmer
Mirabaud (Joint Broker) +44 (0) 20 7878 3362
Peter Krens
Ed Haig-Thomas
Hannam & Partners (Joint Broker) +44 (0) 20 7907 8500
Neil Passmore
Alejandro Demichelis
Hamish Clegg
Celicourt Communications +44 (0) 20 7520 9266
Mark Antelme
Jimmy Lea
Ollie Mills
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No.596/2014, and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Notes to Editors:
About Savannah Petroleum
Savannah Petroleum PLC is an AIM listed oil and gas company with
exploration and production assets in Niger and Nigeria. Savannah's
flagship assets include the R1/R2 and R3/R4 PSCs, which cover c.50%
of the highly prospective Agadem Rift Basin ("ARB") of South East
Niger, acquired in 2014/15. The Company is in the process of
acquiring interests in the cash flow generative Uquo and Stubb
Creek oil and gas fields and an interest in the Accugas midstream
business in South East Nigeria from Seven Energy.
Further information on Savannah Petroleum PLC can be found on
the Company's website:
http://www.savannah-petroleum.com/en/index.php
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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