LONDON (Alliance News) - Savannah Petroleum PLC said Friday it is making "good progress" on its Seven Energy series of transactions.
The oil and gas company focused around activities in Niger and Nigeria said the transaction is expected to be completed in the second quarter.
Following the completion of the Nigerian elections, Savannah Petroleum is confident it will receive ministerial consent for the transaction.
Shares in Savannah Petroleum were down 2.8% Friday at 24.00 pence each.
In 2017, Savannah agreed to acquire assets from Seven Energy in a deal which would see the London-listed firm is to take a 40% interest in the Uquo oil and gas field in Nigeria and a 63% interest in Seven Energy's subsidiary Universal Energy Resources Ltd, which has a 51% interest in the Stubb Creek oil and gas field in the south-east Niger delta.
Savannah also agreed to take a 20% stake in the Accugas Ltd midstream business, a 260-kilometre gas pipeline network and associated gas processing infrastructure, potentially alongside third-party investors.
At the end of December, Savannah Petroleum had amended its Seven Energy transaction, under which African Infrastructure Investment Managers would have acquired 80% of Accugas and Savannah the remaining 20%.
Under the amended deal, Savannah has acquired a 55% interest in Nigerian midstream business Accugas at no cost, raising its Accugas interest to 75% from 20%.
As a result of signing the implementation agreement, Savannah Petroleum has agreed to provide further liquidity to the Seven Energy during the restructuring period by way of an increase in the size of the liquidity facility to up to USD28 million.
The liquidity facility is a super-senior secured revolving credit facility of an initial USD20 million and was put in place in November 2017.
