Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Https://www.youtube.com/watch?v=htgr3pvBr-I
AK please don’t hang up on the SS officials. Best of luck from all Savers. Goodnight everyone.
Yes they’re reporting news that was posted here a month ago.
Courtesy of E43 on other site.
https://oilprice.com/Latest-Energy-News/World-News/Sudan-Oil-Exports-under-Force-Majeure-As-Pipeline-Ruptures-in-War-Zone.html
What’s our expected revenue after this new deal? Doubling? 50% more?
NicetoMichu - One would imagine that AK plan is to come back being an enlarged entity so it stops future suspensions and they can carry on deal making whilst trading. Now whether that comes in the form of SS or another remains to be seen. It would seem illogical to come to market and than ask for another suspension if the acquisition is large they would be better of continuing the current one.
Nice news yesterday.. but if SS is still progressive and still only semi close to completion stage, then I'm absolutely all for another extension of our suspension.
AK very much needs to come out of suspension with a blatantly big win under his belt imho.. if not SS then a n other ..
(yesterdays news is small/medium win in my mind, for context)
Zen
Re your thoughts on Niger and the Govt wanting to do the other blocks themselves, do you think this may now open the door for Sinopec to join us on Agadem, it may offer us some security to be aligned with a none western partner ?
Looks like Bracewell continue to be our Deal advisors for acquisitions, let's hope they have a few more juicy ones lined up for us.........
https://bracewell.com/news/bracewell-advises-savannah-energy-on-acquisition-of-49-percent-participating-interest-in-stubb-creek-field
Z -TY and great summary as ever. Surely at some point we will see some of this being reflected in the SP. I’d dearly like to see the 33m 2C move to 2P TY as a bare minimum additional bit of business to todays news along with at least 1.5k production. Then CPF and debt deals completing would give us some decent trajectory.
Although it would make sense to extend the suspension again if there’s a fighting chance of completion, I’m getting bored now and just want to see SAVE listed again.
CPR Figures
All the discovered fields both in Nigeria and Niger offer significant 3C upside (Recovery factor, pressure communication etc ..) as well as substantial exploration potential.
Uquo/Stubb Creek 2P/2C Net = 164 mmboe.
Niger 4 fields 2C Net = 33 mmboe.
Uquo/Stubb Creek additional potential 3C Net = 17.5 mmboe.
Niger 4 existing fields additional potential 3C Net = 75.8 mmbo.
Total 2P/2C Net = 197 mmboe.
Potential Net 3C = 93 mmboe .
Further recoverable exploration potential of Net 93 - 185 mmboe. (on Uquo/Stubb Creek licences mid-high case Net 69 - 114 mmboe + deeper potential in the 4 Niger fields mid-high case Net 24.3 - 71.3 mmboe.)
3 Tweets out today and worth a quick look as there are 3 decent photos on there. ‘Here is one of the Tweets:-
The SIPEC acquisition will increase Savannah’s Reserve and Resource base by approximately 46 MMboe following completion, with 2P Reserves to increase by 13% to 73.3 MMboe and 2C Resources by 41% to 130.2 MMboe.
Stubb Creek gross production is expected to increase by approximately 2.7 Kbopd to 4.7 Kbopd, following the implementation of a planned de-bottlenecking programme within 12 months of completion of the SIPEC acquisition.
The SIPEC Acquisition will also secure significant additional feedstock gas available for sale to Savannah’s 80% owned Nigerian gas processing and distribution subsidiary, Accugas Limited, which currently has eight principal gas customers. With a weighted average contract life of 14 years, Savannah’s natural gas supplies are a critical enabler of the Nigerian economy and currently support approximately 20% of Nigeria’s thermal power generation.
Maybe the giant is stirring. We now have new numbers for 2P and 2C which can be added to this year from Niger and or South Sudan. We could have quite large increases to the reserve numbers in a few months time.
Here’s hoping anyway…
I’d like to see a few more deals of this size, especially like this one as the financials look extremely attractive. Let’s hope its all signed sealed and delivered in short order now and no later than September.
Malcys note FWIW:-
This acquisition is very smart indeed, getting 100% of the rest of Sinopec Nigeria comes with a number of bonuses. Savannah buys a 75% interest in SIPEC from Sinopec and 25% from Jagal for a 49% interest in the Stubb Creek field which makes a good fit with the other 51% owned by UER, a Savannah affiliate and operator.
They will pay $52m and $7.5m respectively and the transaction should complete on the 1st September. As at year end 2023, SIPEC had an estimated 8.1 MMstb of 2P oil reserves and 227 Bscf of 2C Contingent gas resources. Also SIPEC oil production is estimated at an average for 2024 of 1.4 Kbopd. Savannah’s Reserve and Resource base will increase by approximately 46 MMboe following completion of the SIPEC Acquisition.
There’s more, it is anticipated that, within 12 months following completion of the SIPEC Acquisition, Stubb Creek gross production should increase by approximately 2.7 Kbopd to approximately 4.7 Kbopd through implementation of a de-bottlenecking programme.
Another added financial advantage comes through the significant additional feedstock gas available for sale to Accugas, 80% owned by Savannah and who sell to eight principal gas customers across Nigeria where they have a weighted average contract life of 14 years. Savannah supply some 20% of Nigeria’s thermal power generation.
My conclusion is that for $61.5m the deal adds material 2P reserves and 2P resources made more valuable by their application by providing feedstock and offsetting declines at Uquo. The deal is accretive and at C. $7.50/ bbl very cheap given the current price deck.
Got a hockey buddy last known to be living in Nordhoek, who we visited whilst there. Not far from Camps Bay.
Late 90s? Was in Cape Town (Camps Bay) for 2 years growing up. Then Asia for a few years international school then back in the uk for ‘middle schooling’ year 9. Would love to visit SA again but as you say not sure if it’s safe to do so. I think it’s ok joining tour but don’t fancy that. Beautiful country. Stellenbosch, Franschhoek, Constantia….. maybe we should all go together.
1,564 to 1,477 today
Another 7 days like that please
Feeling like our ducks lining up at last
BANG BANG
Reminds me of when we were lucky enough to visit SA when it was relatively safe to do so. What a lovely country and it was probably one of our finest adventures, even including getting bumped off our flight from Joburg (airport not city) to Cape Town, which led to an epic event, probably too long for here.
When we overnighted in the Kruger, we kept hearing sounds of items falling from trees.
The next morning we looked outside and we were surrounded by Macadamia trees and the noise was the nuts falling to the ground.
Macadamia, king of of nuts you are Noix. If you’d prefer fruit, Durain the king then :)) good to see all are feeling a little jolly today. Yes I’m a huge durian fan.
Brent lso sat at $86 per barrel at present which is also encouraging. "are we on a roll" ?
RR
My thinking was more along the lines of, if neutral to bad news is to be announced, surely they would have wanted something to sweeten the pill.
For the sake of 8 trading days, why issue this news today.
Rocky - This morning's news alongside hopefully Niger coming into play again has certainly alleviated some of my concerns. now and continue to be supportive of further accretive growth.
NTM
Just call me walnuts :)
Noix - I’m with you mate, let’s get the smallest good news out of the way and clear the path for a big RNS.
TiL - I’m happy to stay suspended as the intrinsic value of the company is growing day by day.
Hopefully today’s news will mitigate a lot of the bad luck we’ve suffered should we need to return with a failed SS deal. And should SS fail, I now feel quite confident that we would resume no worse than the suspended price.
You Sir are the Noixtimist
If you like, but one could be forgiven for believing that today's news may indicate a positive development at the end of the month.
Zengas - 100% agreed on the basis that Savannah can bring additional deals in this suspension window with or without south sudan I would be happy for the 2nd April date to be extended if they can secure another material acquisition alongside or instead of South Sudan acquisition. We did throw our hat in the ring for Assala assets ass per the Jan 2024 africa intelligence article so on that basis clearly our current position is not hindering additional deals.
In light of today's SPA happy to be suspended to bring incremental or bigger deals in this suspension window.....
A lot may disagree with this but this is just my opinion of course if south sudan is ready than happy to come back as soon as possible.