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Eye Radio
South Sudan inks deal with U.S. based firm to acquire Petronas shares:
https://www.eyeradio.org/south-sudan-inks-deal-with-u-s-firm-to-acquire-petronas-shares/
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I am fully supportive of AK and truly believe that he will any downside risks. After all the chairman did subscribe at suspended price to the tune of 26.25p and he would have an idea of what else is in the pipeline for the business.
One would hope that Savannah Energy has planned all the what if scenario's as the deal has been progressed in the background during the last 10 months and if it weren't to complete than whats the plan......................................
I'm totally in agreement. My view is that Savannah have the expertise and pedigree to really make a difference to some of the poorest countries in the world. Nigeria does function despite wide spread corruption. Even if u do business in more stable countries there are still problems with getting paid. I'm a shareholder of Zenith so forgive my jaundiced view point.
Ignore last paragraph.
We should all find out shortly… fingers crossed for a positive outcome 🤞
Here’s my two cents.
I fully expect an RNS from Save in the next 24 hrs.
I’m slightly perplexed about the energy voice article.
It headlines ‘ South Sudan has announced a $3 billion deal with a small US company on the joint purchase of Petronas’ stakes and other investments. ……The South Sudan presidency said the company would provide $800 million within two months to begin the work. It quoted the Caltech official as saying the company was ready to move into South Sudan.
That’s a lot of cash for an investment company operating out of a strip joint……’The New Jersey-based Caltech shows little sign that it would be able to muster the $3bn discussed with President Kiir in New York. The company has two addresses, one in a strip mall, the other in a residential street.’
Prices must have increased since I was last in one 😱
In one sentence it makes reference to the The New Jersey-based Caltech shows little sign that it would be able to muster the $3bn discussed with President Kiir in New York. The company has two addresses, one in a strip mall, the other in a residential street.
I agree with you cjg.
The potential big impact now with be the reaction of the Instits when Savannah relists. After the immediate issues of dealing with this apparent deal failure, the relationship with Instits will be the company's immediate focus.
The corporate strategy is going to be questioned. The share price will get hit and will likely be volatile. I remain of the view that the interims will be ugly and that will not help the SP or the messaging.
The worst thing the company can do now is go to ground and fail to clearly and effectively re-engage with the shareholder base. It's a tough position, but I remain supportive of the management team.
Yes it could not to the extremes that some speculate though also some brokers were not to keen on the SS deal in the first place considering the jurisdiction, so some may view this in a positive light considering it as a get of jail free card. It will depend on the following i guess and the timing of other newsflow:
1) Addtional accugas contracts
2) CPF processing plant progress - I believe we have hired construction manager in July so work should have commenced.
3) Niger plans and progress
4) Debt restructuring
5) Potential new deal which has already been trialled as this year.
6) Anything else that I have missed.
I have waited 10 months already I think I am willing to wait an additional 3 months on above till 31st December 2023 and than assess at that point.
Looks like we've wasted a lot of time and effort. Facebook post from the President office it looks a done deal. We've been played because we've insisted on doing deals in countries with appalling records in corporate dealings where majors have been keen to walk away. Maybe we can go for Yemen next? Unless we announce a further suspension and a new acquisition we will get smashed when this starts trading despite our progress in Nigeria.
TIL, that is all well and good however history of this share will tell you that on bad news ie no deal the opening share price will not be higher than today and realistically could hit 19p.
"The Chief Overseer of Caltech Investment Mohamed Malik says the acquisition fits appropriately with the company's strategy of expanding and focusing on the delivery of 'Projects that Matter' in South Sudan and the sub Saharan region."
if real, CalTech are even stealing SAVE's slogans !
Most People are getting anxious needlessly, might i remind everyone that before any deal our share price was 19p this was June 2021 even before the chad deal we are now suspended at 26.25p so in September 2023. An additional 2 years and 3 months of operational growth in accugas asset and net debt reduction and only 7p higher. We are not fairly priced at suspension in fact with the accugas asset alone we should really be anywhere between 30 - 35p. I would advise people to read the last few broker notes for ease of mind
Starting to think there is some legs in this and it will have an initial negative impact on share price whether we like it or not, if true we could be back trading in the next couple of days and i don't think it will be pretty unless AK announces new RTO and failure of this at the same time and we remain suspended.
Wow. Sounds like a done deal. Save must have guessed for sometime that all isn’t quite right as official approval dragged on and on.
Office of the President - Republic of South Sudan, Facebook page.
https://www.facebook.com/100018542066050/posts/1369539927007396/?mibextid=rS40aB7S9Ucbxw6v
Checked in here and can’t believe what I’m reading. I’m very worried about our share price reopening. I might be thick, but it says $3 billions for Petrona’s and other assets, they might not have overpaid? Sounds like the president had struck a deal with them worth $3bil in total. At the very least it sounds like we now have a competitor.
We could talk to the moon and back among ourselves (as we did) but the truth is Save has yet to complete the deal. If true all so heartlessly terminated after all the hard work. Sad.
Https://www.energyvoice.com/oilandgas/africa/536054/savannah-competition-petronas-purchase-south-sudan/
"The New Jersey-based Caltech shows little sign that it would be able to muster the $3bn discussed with President Kiir in New York. The company has two addresses, one in a strip mall, the other in a residential street."
All very bizarre...
Besides the new company must be funded by Elon musk if they are willing to pay 3 times what the assets are actually worth. And how do the my propose to interstate the assets they have got no experience in running oil and gas fields no operational foot print.
And also as longshort says they probably need to get legal advice on this before commenting as it could back fire on them as well.
If we've been working on the deal for 18 months and haven't completed all workstrreams how the hell can this company have done it in 4 weeks with aparently no contact with Petronas ? seems iffy to me though again you are dealing with African govenments so anything possible.
Correct beggarman there is more than meets the eye with this best to let it play out and only news from credible sources on deal status I.e Petronas or savannah energy will be deemed actual factual news.
As I said in one of my earlier post if we were close to completion this perhaps could be a last ditch attempt to squeeze more out the deal or an attempt to continue stalling the deal further if they had run out of actual genuine excuses. I still find in interesting the official source didn’t mention savannah at all. I would have expected it so say they have formal rejected the savannah Petronas deal. Seems to me like they are playing chess for perhaps additional add ons
Beggarman. The company along with everyone on here don't know if it is true and have only been made aware of this today along with all of us, so unable to make an announcement,
If the deal was dead in the water since the 22nd August, shouldn't the company have issued an RNS confirming the fact and re-admitted the shares to tading?
Seems Secretary General of the Presidency, Ferdinand Ngoh Ngoh is the key to brokering the deal............. they met a month ago so let's hope positive things are to come perhaps cotco pipeline funds being frozen for all parties will force them to the negotiation table
Savannah uses British diplomacy to pressure the presidency on ExxonMobil shares
The newly appointed British ambassador to Yaoundé (who previously held posts in Bamako and Algiers), Barry Lowen, is trying to rescue the London-based junior company Savannah Energy. In a confidential meeting, he met the Secretary General of the Presidency, Ferdinand Ngoh Ngoh, on 29 August. Lowen hopes that the Cameroonian authorities will quickly bring together the various stakeholders so that Savannah Energy can receive compensation for the damage it has suffered in the ExxonMobil case.
At the end of 2022, Savannah Energy bought ExxonMobil's 40% stake in Cameroon Oil Transportation Co (COTCO), the company that manages the pipeline that transports Chadian crude from Doba to the Cameroonian port of Kribi. However, in March, the Chadian government finally decided to nationalise these shares.
In April, Savannah Energy undertook to sell 10% of its 40% stake in COTCO to the Cameroonian government for $44.9m (AI, 31/07/23). However, in order to convince Yaoundé to also nationalise ExxonMobil's assets in Cameroon, Chad finally decided in mid-August to double its stake by selling 20% to Cameroon.
This incident led to conflict between the Managing Director of Société Nationale des Hydrocarbures (SNH), Adolphe Moudiki, who was closer to Savannah Energy, and Ngoh Ngoh, who sided with Chad (AI, 06/06/23).
The US courts recently ordered the freezing of COTCO's accounts held by Citibank's Gabonese subsidiary.
Agreed Komakino - To be fair either way I want the interim results first to show the progress the business is making on all existing fronts happy to wait for AD if it takes longer.
Look at the career profiles for employees on Linkedin and website it's even more hilarious besides never heard of a government getting explicit budgetary support as a side to the deal surely that would lead to all sorts of international law condemnation and be akin to a bribe and also if the said individuals are us based individuals that surely there must be some law they are tripping up which could lead to potential persecution.
Also considering the bad press that Oil and Gas sector has got in sudan especially as there is currently the lundin case, Would Petronas really sanction a deal where the source of funds and credibility of buyers is sketchy, as sellers they have a responsibility to sell with all the due diligence as well.
If a genuine major like exxon, chevron, etc.................... came along and offered $3bn dollars than fair game you got outpriced by a company that is actually genuine and has the power but this entity seems like bad joke
this reminds me when lekoil announced that they had funding from qatari investors and they got scammed -
https://www.theguardian.com/business/2020/jan/13/nigerian-oil-firms-shares-suspended-after-revealing-alleged-scam#:~:text=Lekoil%20had%20already%20revealed%20the,the%20validity%E2%80%9D%20of%20the%20deal.