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Who knows we may even get news this week ?
Porsche - This is the point I made yesterday. Obviously if it comes with government approval the bigger the rise, but without it there will be a premium to SP as well.
Are we perhaps reading more into govt. approval than is needed? When I firsted invested into SAVP, it was on the basis of the Seven acquisition and I waited for govt. approval before buying in. From that point on it was pretty much a steady decline down to 7p, and thankfully I averaged down massively otherwise I'd still be underwater! When we announced the Exxon deal we again had none of the required sign offs but the sp went from about 20p to 40p before drifting back. After the Chad situation I understand why most would prefer to come back with approval but I guess it's possible we are making too much of it and the market will base it's response mainly on the economics of the deal.
Interesting to see the Afentra are up 23% today following the issue of an updated Admission Document following completion of their Sonogol and Azule acquisitions without Government approval that is expected after Shareholder approval.
This was the order of the Gabon court that Chad were trying to unpick:
In view of the urgency;
[6].
Order CITIBANK GABON SA to maintain the freeze on COTCO SA's bank accounts in its books until the disputes between COTCO's shareholders have been finally resolved;
[7].
We also order, if necessary, the freezing of these accounts again until the final settlement of the disputes between its shareholders, and in particular between the Chadian party and the petitioning company;
[8].
We state that only transactions related to the payment of salaries, taxes and social security contributions can be debited from the accounts;
[9].
We hereby order the immediate provisional execution of the present order and before registration;
[10].
Costs to be borne by the petitioners.
Delivered in our chambers on July 14, 2023
Doesn't appear to have much to say recently about Chad or South Sudan, maybe they will update soon ?
This is therefore a third court decision in favor of a status quo which is rendered at the request of Savannah Energy. We remember that last July, the British junior had already obtained from the Paris Chamber of Commerce, ruling under emergency procedure, the suspension of the effects of the resolutions adopted during the general meetings of May 24, 2023 and 4 July 2023 from COTCO. In other words, the directors of Savannah Midstream Investment Limited (SMIL), a gas subsidiary of Savannah Energy, dismissed during the board meeting of May 24, were reinstated in their rights as well as the Managing Director designated by the British who controls 41 .06% of the company's shares. The order of the emergency judge also rendered null and void the appointment, at the beginning of July 2023, of Cameroonian Harouna Bako to the position of General Director of COTCO and suspended the meetings of the board of directors and the general meetings which had been convened on July 26, 2023.
Read also: Control of Cotco: Savannah wins arbitration
To convince the emergency judge, Savannah indicated that holding the meetings on July 26 would confirm her ousting from the company in which she holds more than 41% of the capital. “This situation will be irreversible, and COTCO funds will be dissipated, and it will not be possible to recover them since Chad, one of the poorest states in the world, is not solvent and benefits from the “immunity from execution,” the company’s counsel said.
A legitimate fear because in a press release made public on June 2, 2023, the Chadian Ministry of Hydrocarbons announced the dismissal “with immediate effect” from the COTCO board of directors of all directors representing Savannah, including the Chairman and CEO. Nicolas Deblanpré. N'Djamena also ordered the banks holding COTCO's accounts in Cemac, as well as the Bank of Central African States (BEAC), “not to follow up on instructions for movement of funds, particularly abroad. » executives appointed by Savannah Energy. Chad then claimed the majority within the board of directors after having bought back the 30.16% of the shares that the Malaysian company Pétronas held in COTCO, Chad's participation in this joint venture having increased to 53.77% against 41.06% for SMIL and 5.17% for Cameroon (via SNH).
Https://ecomatin.net/pipeline-tchad-cameroun-la-justice-americaine-ordonne-le-gel-des-comptes-de-cotco-a-citibank-gabon/
Chad-Cameroon pipeline: American justice orders the freezing of COTCO accounts at Citibank Gabon
The case may be far from over, but it is already another “small victory” for Savannah Energy in the legal battle between it and Chad. At the request of the British oil and gas junior, the judge of the Court of First Instance of New York, on September 15, ruled in favor of freezing the funds of Cameroon Oil Transportation Company (COTCO), housed in the books of the Gabonese subsidiary of the American bank Citibank.
Photo by EcoMatin EcoMatin Send an email9 seconds agoLast updated: September 18, 2023 17 3 minutes read
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CitiBank
“Savannah Midstream Investment Limited (Savannah) needs help because investments belonging to Cameroon Oil Transportation Company S.A. (COTCO), of which Savannah is a 41% shareholder, risk being dissipated and misappropriated. The funds are held in an account in the name of COTCO (the company responsible for managing the Cameroonian part of the Chad-Cameroon pipeline, editor's note) at Citibank Gabon, S.A., a subsidiary of Citibank. The underlying issues are subject to arbitration by the International Chamber of Commerce, which will determine ownership of the funds. This will be of no use if the funds have been disbursed in the meantime,” we read. Clearly, the court based in New York fears that before the Paris Chamber of Commerce (CCI) decides on the merits of the case, the Chadian party will get its hands on these funds estimated at 151 million dollars, or approximately 93 billion FCFA.
Read also: Cotco affair: beyond the arbitration award, these facts which overwhelm Savannah
It therefore instructs the bank to preserve the “status quo” by freezing said funds until the resolution of disputes between shareholders of the company, “with the exception of the amounts necessary for the normal payment of COTCO employees, taxes, and its existing subcontractors and suppliers essential to COTCO's operation of the pipeline. We also learn that an order from the Libreville Commercial Court would have rendered a similar decision on which the New York judge visibly relied.
Https://www.bbc.com/news/world-africa-66837026
Hope they've got a DR plan...
TIL – “returning with approval or approval pending will still be positive for sp” – I hope you are right but if IR are correct that “AK will def not want to comeback without ALL approvals inc. Gov consent” the recent challenge to deemed approval in Chad and the approximately 50% gradual SP reduction( and subsequent reversal) while we waited for the approval of the Accugas deal suggests it is by no means certain.
On a more positive note Zengas recently highlighted how the half year figures due at the end of this month should show the full benefit of the recent new gas contracts. Hopefully the results will be sufficient to at least underwrite the current share price regardless of the timing of the completion of the SS deal.
Returning to the market with admission document and South Sudan deal still proceeding will have a premium to sp regardless of formal approval still waiting. Obviously if formal approval comes at the same time then return price will be a significant premium but returning with approval or approval pending will still be positive for sp
Personally I am glad that half year report is round the corner, I wasn’t please with them not dealing a q2 report. I believe going forward the company needs a consistent approach to releasing news. Regardless of whether we have transformational stuff working in the background. So let’s hope going forward they realease quarterly updates alongside the half year and fully year obligatory updates
Recalling RockyRides post of 6th September following his conversation with I.R.
“AK still in SS and been thee most of the summer
Working flat out to complete by end Sept and company still hopeful it will be done by then
I don't know if have Gov approval but could not be told anyway
NOMAD will decide on further extn if not completed by end Sept but AK will def not want to comeback without ALL approvals inc. Gov consent
I think if not fully completed we will see further extn until everything completed apart from shareholder approval”
If all workstreams are complete and deal completion is dependant only on SS and shareholder sign off I think the uncertainty of the timing of the SS sign off would make it too difficult for the NOMAD to give a further extension.
AK is on record in the 8th June RNS that “at least one further hydrocarbon asset deal” is a key project before the year end. The wording does not say completion of one further project, but the announcement of another signed conditional SPA would fulfil that objective.
In my opinion the timing of the flurry of activity and RNS announcements between 8th December and 13th December resulting in the planned commencement of trading on 13th December and subsequent Petronas RTO announcement suspension cannot have been a coincidence. AK knew that Chad questioning the legitimacy of the Doba fields and TOTCO pipeline deal would damage the share price.
If the “one further hydrocarbon deal” is signed by both parties but is being held by lawyers awaiting the two parties’ instructions, the next deal could be announced at the same time as a default return to market to avoid share price weakness from the uncertainty of SS approval.
Getting the SS deal over the line ASAP and a prompt return to the market not only keeps the NOMAD happy but also helps to bolster the numbers on the 2023 P&L account to avoid potentially failing the Turnover and Profit Class Tests on any 2024 acquisitions. A SS deal completion by the end of this month and the announcement of another signed conditional SPA at the end of the year could fulfil both the RTO Class Tests and one of the Key Project objectives.
I personally think the shares need to be relisted even if the deal still hasn't been approved. I personally think it’s wrong that a company can suspend their shares for 9 months and think it shouldn't be allowed. I personally think the longest any share should be suspended should be 6 months which is more than enough time to finalise a deal and publish a admission document. After this trading should resumes even if it take another 6-12months for government approval.
So now that we are 2 weeks out what do folks think…….. all views welcome
Personally going for 2 months further extension till the end of November to be on the temper my own expectations.
Thanks for sharing Komakino, certainly makes me feel more comfortable
Yes, that's pretty much the gist PSB123
Am I right in thinking this stops the Chad government from taking money out of the pipeline and whilst not directly linked to our main case means it will be easier to get our cash assuming we win?
Thanks for any clarification from anyone, I’m finding some of the various legal procedures a little difficult to follow precisely
Thanks, komakino: that is good news!
I am still of the view that Savannah will resort to Mareva injunctions to seize vessels and thus secure funds in the event that the ICC rules in its favour.
Good morning!
Judge's Order: 'Accordingly, the responsible managers of Respondents Citibank, N.A. and Citigroup, Inc. shall forthwith unequivocally instruct the managers of Citibank Gabon, S.A. to comply with the present order of the Libreville Commercial Court in Gabon, and to preserve the status quo by maintaining the present freeze of the COTCO funds until resolution of the COTCO shareholders' disputes, except for amounts necessary for the ordinary course of payment of COTCO's employees, taxes, and its existing subcontractors and suppliers essential to COTCO's operation of the pipeline. (Signed by Judge Louis L. Stanton on 9/15/2023)'
https://www.pacermonitor.com/public/case/50259183/Savannah_Midstream_Investment_Limited_v_Citibank_NA_New_York_et_al
Tier, both links work for me but I don't understand the reference to refreshing the page.
If anyone cannot open them, then I suggest altering the H in Https to a small h - https.
Shouldn't be a bad time to come back with oil at $93+ a barrel, fingers crossed its just the i's and t's etc to do now
Didn’t work. Don’t know why? Never mind. I’m sure we all see AK’s face and click on that :) not bad news for a Friday.
Https://www.southsudanminingjournal.co/en/post/s-sudan-inches-toward-joining-african-mineral-geoscience-center/342
Easier reference :) you need to refresh the page otherwise it’ll link the original page you’re reading. Let’s hope the source is credible.
Https://www.southsudanminingjournal.co/en/post/joint-operating-companies-to-maintain-ownership-of-oil-industry/348
I suspect the release of this Savannah nugget may deliberately coincide with the headline article above (which appears to be similar to the Bloomberg story that affc kindly forwarded yesterday).
Close to the edge? Well, we get interims in two weeks if nothing else.