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Fair to say there’s been no progress since their first deadline 30/6/23.
Does anyone really think May 17th we will come back with SS approval? If not why next?
Ditto on AJ Bell account
Tipped to become a future leader of the Scottish Green Party.
Yeah, I also noticed that yesterday when I was doing my end-of-month accounts.
Https://polaris.brighterir.com/public/savannah_energy_plc/news/rns/story/xq8nklx/export
Also what about this from the RNS on 28th March?
The Company will provide a more detailed update regarding the ongoing process to complete the transaction during the course of next week.
Apologies to you, RockyRide: I wrote RockyRoad in my note below.
I also left out the need for a detailed update on the entire liability side of the balance sheet. Step up, Nick, please.
I fully concur on IR: I feel more knowledgeable than they are, tbh.
AGM might end up like the Smithfield Market scene out of The Long Good Friday; or an old Eurotunnel AGM. Sadly, I won't be there in person.
But after many months of my SAVE shares showing a nil value in my AJ Bell accounts, they’re now showing at the SP of around where they were suspended all those months ago (circa 26p). Perhaps we’re about to re-list? I live in hope. To think I originally invested shortly after the company came to market with promises of riches in Niger & a dividend to start to be paid in 2019 (from memory). How things have changed & I share many of the frustrations recently posted here. I really don’t think AK gives tuppence for his retail shareholders. Prove us wrong AK please!
CYB Excellent and thanks for conveying this on all of our behalfs.
CYB - brilliant and I’ve been pushing back to IR quite hard in recent times. Sally does not like the hard questions and has disengaged now. The comms from the company has been disgraceful IMO. If there is a reason why they have had to go radio silence with NOMAD agreement - then simply let us know.
Yes it’s a big wish, but if there is a reason they’ve been allowed to go silent on EVERYTHING, maybe just maybe, there could be some fantastic news that they have not put out yet such as signing of other large SPA’s for example.
All we can do is wait and use the AGM as a mechanism for getting our points over and using our votes. Nothing that it will make a great deal of difference with >60% of shares held by II’s / BOD but maybe a few of us get together to put our concerns forward to the AGM and also to agree on how we will contest on each resolution.
2/2
The current level of engagement is woeful. Management need to respect shareholders if they want their support.
Ends.
1. You have a large number of long-term shareholders who are deeply dissatisfied with business progress and level of engagement on a number of fronts. Read recent comments on this bulletin board from me, TrustILie, RockyRoad, Zengas and StreetsOfGold, amongst others.
2. Suspension from trading is not an excuse for lack of communication on operating businesses and financial updates.
3. In AK's 31 Dec 2021 presentation to shareholders, quarterly operational updates were proposed. There have been none. Who has advised you to stop communication with investors? Why?
4. It is understood that South Sudan and Chad-Cameroon updates are not possible. This does not give you an excuse not to update on Nigeria and Niger. It does not give you an excuse not to provide operational and financial updates.
5. I (together with another shareholder) wrote to you at length in April with a list of questions and requested an operational update in May. The very short response from IR, flagging the publication of the 2023 financials and little more was wholly inadequate. I do not even know if either Andrew or Nick has read my letter.
6. If all we can expect is more of the same in terms of communication, I propose saving the overhead of an IR team and putting the money to work elsewhere.
7. I'll be voting against the reappointment of the NEDs in the AGM (except the incoming chairman) for failing to hold management to account on investor communication.
8. As Zengas pointed out on this BB, the Niger assets have been there for years and we still have close to zero visibility to first oil.
9. What, if anything, is going on with the renewables projects?
10. Where is the detailed explanation of the highly material impact of Naira volatility on cash held and on future receivables? Where on Earth are we on the debt restructuring? A single sentence that it remains wip is unacceptable.
11. The AGM will rightly be deeply dysfunctional if these issues aren't addressed in advance. Filibustering will not do. Andrew and Nick should both be there in person and both should make presentations.
12. Finally, I'm reposting an excerpt from Zengas' recent post. Please take note.
"Seriously, come results/agm there needs to be a credible plan of action. Six months of this year will be gone. We are not a charity no matter how much the company claims societal good. It's just no longer credible or acceptable to be doing nothing of meaningful size. To go back to my opening lines, 10 years is shameful and any further waffling about future intended plans will no longer wash. Management need a collective boot in the hole re this fiasco of a situation not to mention their divergence to wind and solar while the oil assets there go nowhere fast. I intend to voice this directly to them and i urge other shareholders to do the same that this situation in my view is no longer acceptable and can't be dodged come results/agm."
The current level of
Z - what ever it is - I can only take it as a slight positive. As we know we only do large deals as small deals come with just as much hassle…
RR
It's an interesting one at this moment in time. Maybe in anticipation of S.Sudan or a further acquisition but clearly for Oil & Gas.
It can't be related to the Sipec acquisition announced in March as that is being acquired by - Savannah Energy SC ltd.
" The SIPC SPA will see ****Savannah Energy SC Limited (a wholly owned subsidiary of Savannah)**** acquire a 75% equity interest in SIPEC for cash consideration of US$52 million, payable on completion and subject to customary adjustments for a transaction of this nature from 1 September 2023.. The Jagal SPA will see ****Savannah Energy SC Limited**** acquire a 25% equity interest in SIPEC."
Comparing the Major shareholding info with the last one before suspension:
Ingalls & Snyder have added an extra 4m
Abrdn have reduced by 20.5m and Ruffer LLP have increased by 20.5m so presumably some sort of transfer.
Everything else is the same.
Sounds interesting Z - what do you read in to that? Floating a separate company?????
Savannah Energy Oil & Gas Ltd incorporated at Companies house on the 25th April 2024.
Major shareholders on the company website updated yesterday .
Zen - re your post yesterday about the lack of progress in Niger, I can see why the company changed strategy and decided to wait for the pipeline instead of trucking 1 or 2 k day by road. However, I think we will see progress now and fully expect a plan t b announced at the next strategy update ( along with approval of SS!! here's hoping!)
In recognition of yesterday’s World Day for Safety and Health at Work 2024, Savannah reaffirms our commitment to embedding a strong health and safety culture across the organisation through our robust policies and practices, in line with Pillar 2 of our sustainability strategy – Ensuring Safe and Secure Operations and United Nations Sustainable Development Goals 3 – Good health and well-being, and 8 – Decent work and economic growth.
On 11 September 2023, we were especially proud to achieve one million working hours without a Lost Time Injury (“LTI”) across our business operations in Nigeria. An LTI refers to any incidents which resulted in our people or contractors being unable to work due to an injury sustained at work. We continuously refresh our training and development opportunities to reinforce our commitment to an injury-free working environment for our people, contractors, suppliers and visitors. meaning that none of our people or contractors were unable to work due to an injury sustained at work.
Celebrating one million working hours without an LTI at Savannah's Uquo Central Processing Facility, Nigeria.
Agree. This goes back to RR’s points about lack of any material Updates from IR by way of RNSs and his frustration (shared with many shareholders) about the quality and usefulness of last year’s AGM, in response to CYB’s points from post “Repost: December 2021 presentation”.
As CYB mentioned in that post / company presentation linked to post, the company shared in that ppt solid information about asset & liability side of biz, and promised quarterly updates. Not confidential matters but BAU. We’ve not received anything approaching this since.
Going back to the presentation - slide 11 - bottom lhs of slide table on pricing of debt (and refinance dates) from memory - agree with TIL - we definitely want repayment of expensive $ debt versus divi but I’d prefer debt repayment vs share buy back.
Thank you TIL - really interesting.
I must have missed the RNS…
Zengas - One thing I would like to add is if they are unable to secure another acquisition, and are unable to re-finance the accugas debt. Than my personal choice would be any cash which is considered spare and by spare I mean cash not needed for Accugas and Niger work programmes should be used to pay down the accugas debt as aggressively as possible or share buybacks. Personally not a huge fan of dividends at our current valuation and feel that paying down the accugas debt above the usual payments or share buybacks will be more pleasing to shareholders in terms of growth.
Just to add, it might be too much to expect all good fortune to line up, but with those 3 country assets performing at that indicated level, a positive meaningful compensation award in the next 12 months or so could potentially leave us net debt free.
No operational or financial update at the start of the year for 2024 so looking back to the half year end June 2023 we produced an average 138.5 mmcf/d
Total 6 month revenues were $138.7m invoiced including oil so pro-rata could be about $270-$275m although it was guided as being greater than $235m for all 2023. Also they said the 20/4/23 $44.9m from Cameroon for a 10% pipeline sale was received.
If there is another hit from the exch-rate, it should be tempered by the capex being reduced by $30m ($60m down to $30m).
Net debt at 30/6/23 was $443m (Where are we almost 12 months on?)
Since then - we're paying around $60m for SIPEC with $52m of that to be adjusted down to an effective date of 1/1/23.
8.7 mmbo 2P and 227 Bcf gas ( 46 mmboe total).
Sipec is producing 1400 bopd which at $80/b is about $41m year so we could have $15m knocked off our settlement price in 3 months time.
So perhaps net debt on this new acquisition = $45m by end of August.
If our existing oil/gas revenue is about $270m, this new acquisition at the current production level would take it to about $310m.
Within 12 months of deal completion the combined Stubb Creek oil output is due to rise by another 2,000 bopd which would give us an additional $60m/yr revenue at an $80/b oil price.
So without any additional gas sales revenue, we could be around $370m revenue from Nigeria alone with the additional oil sales and our access to dollars for a dividend.
I'd really be looking to that deal being approved asap which i think would help our overall refinancing of Accugas debt. If nothing else that new income stream would radically improve our net debt position and steer us to a future dividend with no other asset contribution.
Niger 33 mmbo 2C to 2P reserves on sanction.
Attaining 1,000 - 5,000 bopd has to add $29m - $146m revenue at $80/b
Above is a pathway to $500m revenue at little additional cost and reducing the net debt that we have.
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South Sudan
After almost 1.5 years the purchase price has to be greatly reduced.
50,000 bopd at $70 -$75/b oil could be $1250m - $1360m revenue/yr.
If South Sudan debt is also ringfenced, i can definitely see without doubt why this is a major asset to go after regardless of the difficulties next door and the annoyance to some shareholders (i include my self but i see the prize as well despite lack of newsflow).
If it could get back to ramping up it's last few years of oil decline, it could mean 75-100,000 bopd net here.
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Overall we're not in a bad place imho. The Sipec deal is a very good revenue bolt on so they're not sitting still. It also gives us a lot more gas. They just need to get Niger into gear and if we really want reserves growth there we need to pay for exploration or else get a drilling partner in. It could really be unlocked if S.Sudan goes through so maybe why there is little newsflow on Niger.