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Good grief: what idiot programmed the filter here? You can't even say s-p-a-r-s-e without some editorial fascism. Spbackside, perhaps?
hi moho
i share your frustration with the long suspension and sp**** communication. however, if we relist, i believe the ss deal would have to be abandoned under listing rules: that would lead to a significantly lower share price upon relisting. given that the ss deal makes such a fundamental difference to savannah, there's no way it can't be interpreted as a reverse take over.
andrew knott is extremely shrewd: he wouldn't be staying suspended unless this deal still had a decent chance of completion; i think we have to stay suspended until the deal is either done or clearly cannot be done.
i think we'd all like to be trading, but i'd happily remain suspended until 2025 if this deal could get done on attractive terms.
Thanks RR, much appreciate the feedback and your efforts in getting responses from them.
The RNS even states
"To this end, I am pleased to confirm that we are currently in the advanced phase of negotiating the potential acquisition of certain oil exploration and development licenses located in South Sudan."
If they are willing to do business with a under £10m market cap company and not a few hundred million market cap company than there will be some serious eyebrows, especially with our ability to access capital to develop projects aggressively.......
Interesting to see Zenith sign an MOU in South Sudan and RNS today
https://www.lse.co.uk/rns/ZEN/mou-22683648220-south-sudan-3bzbhpeiubyz8oo.html
Let's just hope the traffic jam and regulatory hurdles in South Sudan oil and gas space are starting to loosen and that they start to approve deals that make a substantial difference to their economy.
Well said Kelboy, but thanks Rocky for trying. I think that's why the suspension has to be lifted as its been a convenient excuse to keep us uninformed about other ops updates - even if there is nothing new on SS. I don't quite understand the reluctance from some to get it trading again. The share price will settle where it settles if SS done or not done. Fed up with seeing a flat line (and limited news updates) to get to that point though.
Well if that happens it suggests that the company has done well and we should benefit from the subsequent realignment of the sp. You really are a one track record now you have sold out most of your holding, offering nothing but moans and gripes, so I guess we all can work out who you're playing in the Christmas Carol this year. Why don't you focus on your excellent investment of I3E where you ploughed your SAVE monies. Sometimes it's better to be patient and wait a while ;-)
Never mind us PI shareholders. AK will come out of this all right in the end, with his multi-million $ bonuses and free shares. That's what really matters, for him, eh?
Many thanks, Rocky.
My read between the lines on this is that debt restructure looks close to completion, SS not so much, no extra hydrocarbon deal close to completion and Niger (our part of it) looks stalled.
Interesting on the Accugas capacity and demand. I must look up the potential addition once the expansion project is commissioned.
Thanks Rocky for your efforts to wring a bit of news out of the Company. I greatly appreciate it.
However, on this occasion they have just played a dead bat to most of the questions you posed. Communications from the Board are pretty bad. We have had a year of suspension and been told almost nothing in that time. It shows a lamentable disrespect or disregard for the smaller shareholders and information flow needs to be improved. Yes, I am aware of all the regulation-driven roadblocks but a banger inserted into some orifice or other might be a good idea.
Thanks Rocky.
Saw this tonight on SS
#South_Sudan’s President Kiir dismisses 3 ministers (presidential affairs, trade & industry, public service). The minister of public service J. Bakasoro becomes the new minister of presidential affairs. In addition, Kirr sacked sacked Warrap State Governor
https://x.com/patrickheinisc1/status/1729228672819699808?s=46&t=Lo0qH_1sjMOWHIbbnMFxMA
Thanks Rocky for keeping up the relationship with IR and for going out of your way to provide updates for us all.
My take from your update and a key one for me is the accugas debt restructuring it seems like the paper work is being drawn up which is a good sign, and let’s hope it completes in the next few weeks
Thanks Rocky much appreciated.
PART 2
5 - how are the 4 x ICC cases going and with all the changes going on in Chad (energy minister being sacked due to trying to nationalise Doba), are we talking directly to the Chad Government and trying to reach out of court settlements? I guess with the TOTCO/COTCO revenues being frozen that it's it hitting Government finances quite hard.
We will provide further updates as appropriate in relation to the progress of these matters.
6 - will the company be releasing a Q3 operations / finance update and if so when will this be issued?
We do not typically provide a Q3 update but we will of course update the market on any material news.
7 - if all customers took their full take or pay quotas from Accugas, would we be at full capacity or do we still have spare capacity to add new customers prior to the compression project being completed?
The nameplate capacity of Accugas’ central processing facility is 200 MMscfpd, although it can process up to 240 MMscfpd. Our current take or pay customers amount to 175 MMscfpd, while our interruptible customers account for up to an additional 91 MMscfpd. The volumes supplied on a daily basis to customers vary based on a number of factors. We also distribute third-party gas, via our 260 km pipeline network, to our customers, following the ten-year agreement signed with Amalgamated Oil Company Nigeria Limited (“AMOCON”) earlier this year for the supply of up to 20 MMscfpd. There may be further opportunities for us to commercialise other stranded gas resources in South East Nigeria in this way, which represents a potentially significant opportunity for Accugas.
Nothing for us to get too excited about really but it’s good to stay in touch with IR every now and again.
1 - are Savannah still on track for the South Sudan deal and expecting to issue an Admission Document on or by 15/12/23? What are the work streams that are still being worked on?
We continue to progress the various workstreams for the publication of the Admission Document and will communicate with the market in due course.
2 - as we issued a term-sheet to a consortium of lenders quite some time ago, I'd have expected this to have completed by now. Where are we with the Accugas debt re-finance and is it still expected to close in Q4/23?
The documentation is being finalised and we continue to anticipate this will be completed in Q4 2023.
3 - as part of the companies FY23 objectives, one was stated to be 'close at least one more hydrocarbon M&A deal in addition to South Sudan. Is this still expected to happen before the end of this calendar and how many deals are we working on?
As you can appreciate, any material announcements must made to the market as a whole. A key pillar of our strategy, as set out in our Annual Report and Accounts 2022, is to deliver value accretive inorganic growth and, as such, our business development teams review numerous opportunities each year.
4 - how are things going on with well testing in Niger and has the new $4bn pipeline been completed and commissioned?
As detailed in our recent 2023 Half Year Results announcement, Savannah remains committed to the 35 MMstb (Gross 2C Resources) R3 East oil development in South East Niger. As previously announced, the intention was to carry out a well test programme on our principal discoveries in Q4 2023. However, following political events earlier this year, this timeline has been subject to further revision due to restrictions imposed by the Economic Community of West African States on Niger, which has resulted in the continued closure of the border between Benin and Niger. This has created logistical challenges for companies operating in Niger and, specifically for Savannah, in relation to the importation of the necessary equipment to complete our planned well test programme.
With regard to the Niger Benin pipeline, we understand that the pipeline is almost complete and note that an inauguration ceremony was held on 1 November 2023 but the Niger authorities.
Good Spot Komakino that clears that up I guess he will be sitting on his hands the past few months or perhaps re-deployed...........
TiL, if you do a Google search on Quentin Soulat, the LinkedIn link against his name states 'Chad · Head of Site · Savannah Energy'.
His LinkedIn page states he started in March 2023 so it could have just been unfortunate timing that the assess were Nationalised at the end of March. He's probably been twiddling his thumbs for 9 months!
New Investor relations and communications consultant with M&A experience (maternity cover)
https://www.linkedin.com/in/dhruv-drew-soni-61a895114/
New HR change management consultant on Contract
https://www.linkedin.com/in/amaan-javed-132a5583/
Last but not least this one seems interesting Head of Site @ Savannah Energy started March 2023 so probably not related to Chad acquisition.........
Interesting job description :
- Operational transition of an asset operation from a major company to Savannah.
- Implementation of a new operation philosophy: HR organisation on site, new maintenance strategy and new production/budget objectives.
- Optimisation of operations and costs: Opex management and contract renewals.
- Planification for the next years of improvement/debottlenecking projects : Review of business case and Capex, planification, necessary resources and management of contractors.- Operational transition of an asset operation from a major company to Savannah. - Implementation of a new operation philosophy: HR organisation on site, new maintenance strategy and new production/budget objectives. - Optimisation of operations and costs: Opex management and contract renewals. - Planification for the next years of improvement/debottlenecking projects : Review of business case and Capex, planification, necessary resources and management of contractors.
Skills: Troubleshooting · Opportunity Identification · Management · Site Specific · Budgeting · Performance Motivation · Manufacturing Operations Management · Manufacturing Process Improvement · Production Operations · Safety Management Systems
https://www.linkedin.com/in/quentin-soulat/
"Operational transition of an asset operation from a major company to Savannah." seems like an interesting terminology could it relate to South Sudan or another acquisition who knows or might not mean anything..............
And this just goes to show the size of our renewable projects in Niger. The note below is singing from the hill tops about 30MW of renewables and we have 15 x that signed with our 450MW of renewable projects in Niger. Exactly where we are at with those is debatable but hopefully we’ll get an update on all this stuff before YE. I did not hear from IR last wee as I was promised and sent a nice reminder note on Friday. I’ll post on here as soon as, if and when I get a reply.
Less than 3 weeks to 15th December so at least we have to get some sort on RNS by that date at the very latest and hopefully before. Still wanting to see debt re-structure first as a matter of urgency now.
As ever GLA
Niger has started running its biggest solar power plant, filling in the shortage brought about by a cut in imported power supply from neighbouring Nigeria in July.
Nigeria - which accounted for 70% of Niger's power - cut its electricity supply in August after neighbouring countries imposed sanctions on Nigerien military leaders who overthrew elected President Mohamed Bazoum.
Most of Niger has since then suffered frequent blackouts.
Energy Minister Mahaman Moustapha Barke said on Sunday that quality of electricity supply had improved in the capital and other towns following the coming online of the solar plant.
The French embassy in Mali has said it notes the "operational launch" of the plant but warns that it faces operational risks as it “could not be finalised under the conditions initially planned”.
The plant, built by a French consortium, was initiated in 2018 and inaugurated on 5 July this year. French relations with the Nigerien junta have soured since the coup.
The plant has over 55,000 solar panels and can generate 30 megawatts of electricity.
It had been due to begin operations in August but that was delayed following the 26 July coup that overthrew Mr Bazoum and many of the technical operators left.
Mr Barke, the junta's energy minister, on Sunday said the plant’s coming into operation had been made possible by the technical workers who remained.
Meanwhile, in New York...
https://jusmundi.com/en/document/decision/en-savannah-midstream-investment-limited-v-republic-of-chad-sht-overseas-petroleum-limited-sht-doba-pipeline-investment-inc-societe-nationale-des-hydrocarbures-snh-and-cameroon-oil-transportation-company-cotco-s-a-order-of-the-united-states-district-court-for-the-southern-district-of-new-york-friday-15th-september-2023#decision_54621
I'm not sure if someone else posted this. Looks like the freeze on anyone moving the $151m was approved by the court of 15 Sep but Citi sent notice of appeal 18 Sep and that's the latest. Assuming SMIL wins, it just means that the funds sit there until the Paris proceedings are concluded (I think).
This company would make a blockbuster movie.
Thanks, N2M; kind of you!
Ditto.. and extremely well written imho.. much appreciated cautionyourblast !
Totally agree
Dear Board of Directors
We are now three weeks away from your putative deadline for closing the South Sudan acquisition from Petronas. I note that this is just over a year after the RNS announcing the deal in the first place (12 December 2022) and that, unlike your earlier announced deadline intentions, that it isn't at month-end. My hunch is that there may be a twelve month (or just over) long-stop date from the original announcement to get the deal over the line and that's why what was advertised was 15th December rather than 31st: this is pure speculation on my part.
Given recent apparent political instability in South Sudan, I am expecting that the deal will not be concluded by 15 December. No matter what pressure you may be getting from institutional investors, regulators, the nomad or others to abandon the deal and relist, please continue with the suspension and continue to work on the deal if there is a reasonable chance of successful conclusion. By the way, I am not accusing any of these parties of applying pressure, just assuming that it may be there from some parties.
A good number of your shareholders understand that the complexities and parties here are multiple: Malaysia, Indian, Chinese SOEs; South Sudan government; Sudan wartime government (for distribution); changing faces in negotiations; extension of drilling licences; capex plans to renegotiate; financing; and so many other things that I for one will be ignorant about.
So if the deal still has legs and parties are amenable (or legally obligated) to continue working on the deal, please do keep going. Savannah, given where it is working and what it is working on, is a marathon not a sprint.
Best wishes to all the team in all locations.