LONDON (Alliance News) - Savannah Petroleum PLC on Monday said it has entered into an implementation agreement with Seven Energy International Ltd and some of its subsidiaries and creditors.
The oil & gas company said the implementation agreement is legally binding and details the legal terms and steps according to which the acquisition of the Seven assets will be implemented.
At the end of December, Savannah Petroleum had amended its Seven Energy transaction, originally announced in 2017, 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.
The company said it continues to expect that the transaction will complete during the first quarter of 2019.
"The signing of the implementation agreement is a very important milestone in the Seven Energy transaction, moving us closer to concluding this transformational acquisition," said Savannah Petroleum Chief Executive Andrew Knott.
"The remaining legal and procedural transaction workstreams are now subject to a pre-agreed sequence of events which will now commence," added Knott.
Savannah Petroleum shares were trading 0.4% higher on Monday at 26.50 pence each.
