LONDON (Alliance News) - Niger-focused oil and gas company Savannah Petroleum PLC on Friday said it has raised USD36 million via a share issue to back the acquisition of the R3/R4 production sharing contract area in the country.
Savannah said it issued 61.7 million shares at 38 pence per share to raise the funding. Shares in the company were untraded early Friday, having last traded at 38.00 pence.
The shares will be issued in two tranches, with the first 43.8 million shares to be issued on July 13, raising gross proceeds of USD26 million. The second tranche will be issued on or before August 3 and will comprise the other 17.9 million shares. The second portion is subject to securing shareholder approval.
"The planned acquisition of the R3/R4 PSC Area represents a landmark transaction for Savannah. Assuming award, we expect to have licensed approximately 50 per cent of the area we refer to as the Agadem Rift Basin. I believe this award would therefore place our Company in a strong position going forward, given the unique scale, favourable risk profile and cost structure of our acreage," said Chief Executive Andrew Knott.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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