Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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SIPEC Acquisition
SIPEC's principal asset is a 49% non-operated interest in the Stubb Creek oil and gas field ("Stubb Creek"), located in Akwa Ibom State, Nigeria. An affiliate of Savannah, Universal Energy Resources Limited, is the 51% owner and operator.
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 for cash consideration of US$7.5 million (without adjustment), payable on completion, plus US$2 million in deferred cash consideration payable in eight equal quarterly instalments post-completion. The transaction consideration is expected to be funded through a new bank debt facility arranged by The Standard Bank of South Africa Limited and the existing cash resources of the Company. Completion under each of the SPAs is subject to the parties' satisfaction of customary conditions precedent, including certain regulatory approvals, as well as a mechanism ensuring that completion under both SPAs occurs simultaneously.
March 2024
Savannah Energy PLC
("Savannah" or "the Company")
Consolidation of Stubb Creek Field Interest
Share Purchase Agreements Signed to Acquire a 49% Participating Interest in
Stubb Creek Field, Nigeria and Updated Nigerian CPR Published
Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter, announces that it has signed separate Share Purchase Agreements ("SPAs") with Sinopec International Petroleum Exploration and Production Corporation ("SIPC") and Jagal Ventures Limited ("Jagal") to acquire 100% of the outstanding share capital of Sinopec International Petroleum Exploration and Production Company Nigeria Limited ("SIPEC") (the "SIPEC Acquisition").
Savannah also announces that it has today published an updated Competent Persons Report ("CPR"), compiled by CGG Services (UK) Ltd, covering its assets in Nigeria.
I thought some of you might like to revisit this presentation from the end of 2021. Posted without further comment.
https://wp-savannah-2020.s3.eu-west-2.amazonaws.com/media/2021/12/Restoration-to-AIM-and-major-acquisition-presentation-December-2021.pdf
Looks like operations at port sudan and transit has re-commenced from last Wednesday so previous oil liftings that were in waiting will be processed.
https://www.southsudanminingjournal.co/en/post/boost-for-oil-transit-as-maersk-cautiously-resume-operations-in-port-sudan/617
Https://www.offshore-energy.biz/perenco-boosts-its-portfolio-with-enis-oil-assets-in-congo/
https://www.eni.com/en-IT/media/press-release/2024/03/eni-sale-of-some-upstream-assets-in-congo-to-perenco-completed.html
I’d prefer the US to be there.
Niger's junta revokes military agreement with US https://www.bbc.co.uk/news/world-africa-68590531
My understanding is that Petronas is joint operator via the OCs so I'm assuming Savannah would be so too.
I'm speculating in imagining some sort of de minimis consideration in the event of excessive delay.
From discussion with an experienced arbitrator (top-notch guy and a close friend), we've reached a conclusion (punt) of mid-2025 for a Chadian outcome. Should it be in Savannah's favour, then we're into Mareva injunctions.
Still....Nigeria, Niger, Cameroon, Gabon, Tunisia, etc. My African geography has improved no end.
It’s definitely an interesting conundrum for savannah but having persisted with this deal for so long one would think that Petronas and Savannah would have worked up scenarios if deemed consent is not received.
Perhaps the exit tax or consent fee as the article alludes too needs be the biggest and the sweetest to convince the SS government after all they are in an economic peril so if Petronas are really keen on exiting by all means possible than they could test this avenue to see what is the level that the SS government bite at. Let’s be honest they don’t really want to be operators they all want a big up front lump sum check
TiL - yes it is a very good paper on what’s going on in Africa and as we have been involved with SAVE for some time, we are reasonably educated on what the paper is saying.
I wonder that if AIM push us in to resisting on AIM we could go down this route again and from the paper:-
“The period between signing and completion has also become longer. The government consent process is dictated by law in many jurisdictions, with a “deemed” consent if not approved within a specified time period, but it takes a brave buyer to agree to complete a deal without formal approval.”
If we did go down the deemed consent route in SS, personally I would see it a less of a risk with SAVE not being operator. I don’t think the SS Government would / could just re-nationalise or portions.
Fianlly, if we do go down the deemed route, it will be very interesting how the market take it. Would they respond better if we walked away or continued with deemed consent? But with every month that goes by (assuming production is still taking place) our debt liability at the end of the deal is getting smaller.
We simply KNOW nothing!
Great summary on challenges facing deal making in Africa this year and beyond
https://www.energyvoice.com/oilandgas/africa/545796/deals-in-africa-10-things-to-watch-in-2024/
I would still like to see a partner involved in Niger
I think we have capacity allocated and I seem to recollect 45km at a cost of $30m but simple design and relatively short time to construct and commission.
The Pantheon Resources cost for their hot tap into the Trans Alaska Pipeline System ('TAPS') main oil pipeline is estimated to be $20 million... and a rather protracted affair.
Did SAVE issue any info, back in the ‘early Niger days’, as to the cost and accessibility into the Niger export pipeline?
TiL - I’m sure there must be reasons why we have not progressed Niger a bit more even taking into consideration the wait for pipeline and recent coup. Back in 2015/16 AK told me in a 1 to 1 he was going to dril dril drill and prove prove prove and then sell without ever producing a single barrel and i quote ‘why would I ever want all the hassle of being a producer’!!! How times change eh?
Am bit disappointed to be promised 1.5k trucked for so so long and then a total backtrack without any explanation. I am guessing it either was not worth the hassle or to do with SAVE’s overall ESG calculations.
But with 5 from 5 nearly 6 years ago, 33m 2C, 6.8bn unrisked and an export pipeline operational I also would like to see some short-term decent size projects being delivered here including 1.5k to 5k in the shortest time possible along with an aggressive drilling program.
For all the bad luck and high risk stuff we’ve had and taken on, a good result in Niger in the short term, on it’s own could make our SP move in a very positive direction.
I never thought that this would be so high to the top of my thoughts again so soon. Just goes to show though, in Africa, you need lots of irons in the fire to give you a good chance on the law of averages of something landing.
Anyway, only 9 trading days to go before we get news on 2nd April and who knows maybe before.
GLA
Moved into our 16th month now for suspension and i do wonder how long it can go on. While the company surely knows what the delays are, shareholders are in the dark and limbo.
I wonder if there is another acquisition being worked up but surely this would have been newsworthy and announced by now (the 'at least 1 other hydrocarbon asset by end 2023').
While not suspended, Seplat is till trying to get its Nigerian acquisition over the line from Exxon which was announced 25 months ago despite them being in the country over 10 years.
Hoping a finance minister which has previous ministry of petroleum experience alongside the current petroleum minister have some sense and can convince Kiir to approve our deal but I wouldn’t hold my breath
another ss finance minister sacked and replaced by former minister of petroleum. the ss ministerial **** show continues…… remember the sacked minister is the one who talked about the caltech saga.
https://x.com/patrickheinisc1/status/1768937985276264899?s=46
Tier - I do wonder how long the suspension can continue. There are projects in Africa still awaiting signature five years on. We are getting on for one and a half years. There has to be a drop dead date, and as far as I'm concerned we've past it. It doesn't sound to me like a signature is imminent in spite of what the Co may be convincing LSE, and in Africa small steps forward can be knocked back in a flash with the carousel of changing government personnel who have other ideas. For me this has also added a significant risk factor to SAVE shares if/when they resume trading pending the next potential lengthy suspension, and I'll be looking to reduce my position.
Rockyride - Pleased to see Niger coming back into play for Savannah now, time to stop dilly dallying on Niger and commence an aggressive work programme
Bola Tinubu's U-turn on Niger sanctions received with relief in northern Nigeria https://www.bbc.co.uk/news/world-africa-68563579
They basically confirmed still no government approval; not that we wouldn’t have accurately predicted. I don’t mind further extension but are we likely to get this deal and surely AIM will want a lot of questions answered in order to justify more time given?
Hello RR.
I join all the others to send my deep gratitude.
My very best to you, 🐸
Yes, many thanks RR.
Any inkling in your IR conversation as to those 'other' aquisitions?