LONDON (Alliance News) - Oil & gas company Savannah Petroleum PLC on Thursday said it had signed a gas-for-oil swap agreement with Seven Uquo Gas Ltd and Accugas Ltd.
The company signed a memorandum of understanding with the two companies to conduct a gas-for-oil swap at the Uquo field in south east Nigeria. Seven Uquo's rights to gas production from the field will increase to 100% from 88% and Savannah's ownership of the oil project will be 100%.
In addition, Savannah Petroleum has also agreed to acquire the 38% minority shareholders' interest in Universal Energy Resources Ltd, raising its Stubb Creek field interest to 51% from approximately 32%.
"We are extremely pleased to be able to announce that we have reached agreement to increase our interests in two key assets, both through the frontier memorandum of understanding at Uquo and through the buy-out at Stubb Creek," said Savannah Chief Executive Andrew Knott.
Shares in Savannah were up 1.5% at 27.00 pence on Thursday.