Savannah Petroleum PLC Seven Energy Transaction and Corporate Update (6793A)
May 31 2019 - 2:00AM
UK Regulatory
TIDMSAVP
RNS Number : 6793A
Savannah Petroleum PLC
31 May 2019
31 May 2019
Savannah Petroleum PLC
("Savannah" or "the Company")
Seven Energy Transaction and Corporate Update
Savannah Petroleum PLC, the British independent oil & gas
company focused around activities in Niger and Nigeria, is this
morning pleased to provide a corporate and operational update as
well as an update on the Seven Energy Transaction (the
"Transaction").
Seven Energy Transaction Update
Savannah is pleased to announce that the UERL Buy-Out, as
referenced in the Company's RNS of 20 September 2018 has been
completed. The Seven Energy Group now owns 100% of UERL, the entity
which holds a 51% operated participating interest in the Stubb
Creek field. The Buy-Out saw the acquisition by the Seven Energy
Group of the 37.5% minority shareholders in UERL, in return for
total cash consideration of c.US$3m.
Good progress continues to be made on other Transaction
workstreams, including the expected granting of Ministerial
Consent, and agreeing and finalising long-form documentation in
relation to the AIIM Investments, the Accugas debt restructuring
and the Frontier Swap. The Company continues to expect that the
Transaction will complete during Q2 2019, which will be followed in
due course by the publication of a Supplemental Admission Document.
Further updates in relation to the Transaction will be published as
appropriate.
Prior to the completion of the Seven Energy Transaction and the
commencement of production from the Niger early production scheme
("EPS"), Savannah remains in the pre-revenue stage of development
and at a point where the Board believes it is inappropriate to
consider the payment of a dividend. Following the expected
completion of the Seven Energy Transaction, the Company expects to
consider the commencement of shareholder returns (either by way of
a dividend payment and/or share buybacks) in respect of 2019.
Seven Energy Operational Update
Average gross daily production from the Seven Assets for the
2018 and 2019 year to date periods is shown in the table below. Gas
from the Uquo field is sold via Accugas to three principal
customers through gas sales agreements ("GSAs"), with gross
take-or-pay volumes under the GSAs set at 152 mmscfd (25.3
kboepd).
Oil and condensate production from the Uquo and Stubb Creek
Fields is transported via ExxonMobil's Qua Iboe oil export terminal
and is sold under a crude offtake agreement with MPN (a subsidiary
of ExxonMobil).
Stubb Creek Uquo Oil & Uquo Gas (mmscfd) Total Production
Oil (kbopd) Condensate (kboepd)
(kblpd)
2018 2.3 0.1 63.8 13.0
------------------ ----------------- ----------------------- ----------------------
2019 Jan
- Apr 2.7 0.1 89.3 17.7
------------------ ----------------- ----------------------- ----------------------
As previously announced, production during 2018 was impacted by
an ongoing maintenance programme at the Calabar National Integrated
Power Plant ("Calabar NIPP"), one of Accugas' three principal gas
customers. The maintenance programme is now complete and production
is expected to continue to ramp up over the course of 2019.
Niger Operational Update
Savannah expects to proceed with its planned Amdigh-1 well test
in 2H 2019, following the expected completion of the Seven Energy
Transaction.
The Company's previously announced Pre-Stack Depth Migration
("PSDM") seismic processing project on R3 East has now completed.
The PSDM dataset shows an overall improvement in seismic imaging
(better event continuity and fault definition) at all levels vs.
the existing Pre-Stack Time Migration ("PSTM") dataset. The
interpretation phase, which is planned to start in June, will
assist in confirming drilling targets to support the proposed EPS
as well as identifying additional prospectivity in the deeper Yogou
and Donga Cretaceous intervals.
Unless otherwise defined, capitalised terms are per the
Company's Admission Document dated 22 December 2017 and per the
Company's RNS announcements dated 20 September 2018 (specifically
relating to the gas for oil swap with Frontier Oil Limited and the
buy-out of minority shareholders in Universal Energy Resources
Limited) and 21 December 2018 (specifically relating to the
acquisition of an additional 55% interest in Accugas as well as the
sale of a 25% (less one share) interest in SUGL and Accugas to
AIIM).
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 (Financial Adviser) +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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