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(Alliance News) - Savannah Energy PLC late Monday said it has signed separate share purchase agreements to acquire assets from Exxon Mobil Corp and Petronas Overseas Ventures Bhd for a combined value of USD626 million.
Savannah said the Petronas acquisition for its Overseas Ventures' entire upstream and midstream asset portfolio in Chad and Cameroon was for the sum of USD266 million. It involves the company acquiring a target company holding a 35% interest in the Doba Oil Project and an effective 30% indirect interest in the Chad-Cameroon export transportation system, comprising a 1,081 kilometre pipeline and the Kome Kribi 1 floating storage and offloading facility, offshore Cameroon.
Further, Savannah said the Exxon acquisition, also for its entire upstream and midstream asset portfolio in Chad and Cameroon, was for USD360 million. It involves Savannah acquiring a target company holding a 40% interest in the Doba Oil Project and an effective 40% indirect interest in the Chad-Cameroon export transportation system, comprising a 1,081 km pipeline and the Kome Kribi 1 floating storage and offloading facility, offshore Cameroon.
Both acquisitions individually constitute reverse takeover transactions and are subject to shareholder approval. A general meeting will be convened around December 17, following which the company plans to restore its shares to trading on London's AIM.
Chief Executive Officer Andrew Knott commented: "I am delighted that we are announcing this afternoon the signature of SPAs to acquire control of the upstream and midstream assets of Exxon and Petronas in Chad and Cameroon. These assets have generated billions of dollars of critical tax revenues for their host countries and free cashflow to their owners since the onset of first oil production in 2003. Further, under our stewardship, we expect these assets in aggregate to generate positive free cashflow and fiscal revenues for Chad and Cameroon for a further twenty-five plus years."
The stock closed down 0.5% at 19.25 pence on Monday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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