Member Info for happysparrow

Paul - see RNS 28/09/18 $50m debt facility.
Extract:
'...The Facility comprises an initial committed amount of US$20m, plus an additional uncommitted amount of a further US$30m, and can be drawn in minimum tranche sizes of US$5m. Facilities monies are envisaged to be available for general corporate purposes, other than debt service. The interest rate payable under the Facility is LIBOR plus 6%, with interest payments due annually. The first years' interest can be capitalised and added to the principle amount of the Facility at Savannah's election....'

some light relief from Buhari's constipation -whilst Nigeria goes down the pan:
https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=2ahUKEwivy4KDq5zjAhWGTcAKHWARD3AQFjABegQIAhAB&url=https%3A%2F%2Fwww.pulse.ng%2Fnews%2Flocal%2Fbuhari-to-launch-campaign-on-open-defecation%2Ffxhjtdw&usg=AOvVaw34Dj3XFvN6LA5gJ6KidCLF

https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=2ahUKEwjbwau7zpvjAhXJbMAKHVZkCr0QFjAAegQIARAB&url=https%3A%2F%2Fwww.thisdaylive.com%2Findex.php%2F2019%2F07%2F04%2Fnestoil-canvasses-total-deregulation-of-gas-sector%2F&usg=AOvVaw12GaZ_CxKQKtYR2Us7GuLa

Tier - this is from Zengas's post of 25th May (thanks Z, once again):
'...If the Nigerian deal successfully closes I think they said it would bring in some $90m (nearly 6 months ago). I did ask one time what's happening to all the cash that's being generated by continuing operations the longer this goes on and if I recall I think I read it correctly that this was reducing the overall debt level that Accugas/Savp/IIMB were taking on and ultimately beneficial for shareholders....'

So, not expecting the cash sum to be bigger, just the debt to be less as it is slowly paid down ($10m a month less, from Z's post last night?)

Paul - cash received on deal completion I think is $90m.

See RNS of 23/01/19:
'As announced in previous regulatory updates, the Company expects a cash inflow of US$90m upon completion of the Seven Energy Transaction.'

I think this refers to RNS of 21/12/18:
'Savannah is pleased to announce the signature of a Memorandum of Understanding ("MOU") with African Infrastructure Investment Fund 3 GP Proprietary Limited, a vehicle managed by African Infrastructure Investment Managers Limited (together, "AIIM") in relation to the acquisition by AIIM of a 25% shareholding interest in each of SUGL and Accugas (the "Investments") for an aggregate cash consideration of US$70m. The Investments are intended to complete immediately following completion of the wider Seven Energy Transaction.'

Then there is a further $20m due to us from somewhere.
That's my take on it.

copy of Zengas's post of 26th June to the article he refers to (thanks Z):
The oil major China National Petroleum Corp (CNPC) plans to start exporting part of the crude oil produced on its Nigerian field Agadem by 2022. It seems to have discarded the option of building an export pipeline through Chad, much to President Idriss Deby displeasure, and would rather take it through Benin out to the coast.
Benin bound
As we revealed, representatives of the Nigerien and Benin governments held several meetings with CNPC in Paris to discuss the export pipeline project. Nigerien president Mahamadou Issoufou validated a project that uses the Benin option at a cabinet meeting in June even though this route is 1,000 km longer than the Chad pipeline. It is also far more expensive, ringing in at $2.25 billion according to the CNPC's internal calculations. The company has already set a schedule for the project. According to our sources, the final investment decision will be taken in October this year and the first contractors will be picked by November. The goal is to have the pipeline and the reception facilities at the Beninese port of Seme completed and ready to use by January 2022. The oil major aims to produce at least 90,000 bpd of crude oil for export. While most of this output will come from Agadem¸ there are identified reserves on Savannah Petroleum blocks R1, R2, R3 and R4, and Sonatrach Kufra as well as CNPC's other block Bilma.

Paul - maybe of help (and for others), though you've probably read it, but there is more on the 7E debt and repayment schedule (and on current gas prices achieved) on the Mirabaud note (from SAVP's website).
Note the last paragraph of that section:
Rapid deleveraging profile: SAVP will inherit an enlarged 75% share of Seven’s US$560m of outstanding debt, of which US$455m sits in Accugas and US$105m in Uquo. Being a majority owned subsidiary all of Seven’s debt (and cash flows) will be consolidated into SAVP’s accounts. However, all debt is non-recourse to SAVP PLC and the agreed terms include no covenants for two years, providing flexibility and downside protection for SAVP shareholders (Niger assets are effectively ring fenced). As shown in the chart below, our updated forecasts assume gearing of 2.7x net debt /EBITDA at the start of FY19, reducing rapidly to just 0.2x by FY22.
During this period we expect the company to run down reported net debt by ~US$390m, equivalent to nearly half its fully consolidated EV of US$799m (current mkt cap US$327m + fully consolidated net debt of US$472m), thus unlocking significant equity value.
Figure 3: repayment chart...(see Mirabaud Note)
Following completion of the Seven deal, we expect SAVP to seek to refinance a portion of the Accugas debt with a view to securing lower debt service costs and more flexibility. This could yield a material CF boost and further upside to our estimates.

Thanks, Zengas - a great help, once again.

(Too, 7E production figures for 2018 and Jan-Apr 2019 are given on 31st May 2019 RNS.)

Thanks, Tier - that's of help but not quite sure what is meant by 'to go for.'
Being a little lazy here, and hoped someone would have figures to hand - shall dig into it more myself - 'my money, so I should put the work in' would be fair comment.

Has anyone (Zengas?) an idea of our cash balance, and reserves, when we complete? - would be happy if it was anywhere close to RRE's $370m - well, more than happy.
Definitely $90m mentioned coming our way, but what about 18 months of 7E trading profits? And what else? (Existing cash, Niger, Loan facility, increased reserves etc?)

Possibly not correct?:
https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=2ahUKEwixhPb5wJbjAhUEQxUIHV3zDeMQFjABegQIAxAB&url=https%3A%2F%2Fwww.vanguardngr.com%2F2019%2F07%2Fi-have-no-breaking-news-on-the-appointment-of-ministers-garba-shehu%2F&usg=AOvVaw1_ZGypt9omQ1iPaeHgt5bu

Also this:
https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&ved=2ahUKEwjwvb-PpZbjAhX9SBUIHYEiAp4QFjACegQIBRAB&url=https%3A%2F%2Fwww.naijaloaded.com.ng%2Fnews%2Fbreaking-buhari-sends-ministerial-list-to-national-assembly&usg=AOvVaw1TdjDFaoWrJLnufOkK0OWf

no, no problem, Tier - spread the good news.

Steady on, old chap, steady on (Hee hee). - let's see if the share price climbs. Currently 16.80p. no more cash here to add - sofa long ago cleaned out.

https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=2ahUKEwip0KHGn5bjAhX0SxUIHUTKDcIQFjABegQIBRAB&url=https%3A%2F%2Fdailypost.ng%2F2019%2F07%2F02%2Fbreaking-buhari-sends-ministerial-list-national-assembly%2F&usg=AOvVaw1MQ7Egzu2Jah5_2396ypoh

https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&uact=8&ved=2ahUKEwjo1pKI0ZXjAhXUsHEKHXg0CWcQFjACegQIBRAB&url=https%3A%2F%2Fwww.chathamhouse.org%2Fexpert%2Fcomment%2Fbuhari-s-second-chance-oil-and-gas-reform-nigeria&usg=AOvVaw1cX9ZWSVwXG-Z28wPXTVSD

https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=2ahUKEwjo1pKI0ZXjAhXUsHEKHXg0CWcQFjABegQIBhAB&url=https%3A%2F%2Fpunchng.com%2Fnigerias-second-chance-at-petroleum-sector-reform%2F&usg=AOvVaw3B-u5dpo35xn0Im51DPgIK

More likely dessert, Tier.
Deal squidded next week?

https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=2ahUKEwj9yd3C6JDjAhVjt3EKHQjzDtIQFjAAegQIBRAB&url=https%3A%2F%2Fwww.sunnewsonline.com%2Fthe-ministerial-list-and-the-long-wait%2F&usg=AOvVaw0oa6fZqb8epXydMmUReEaH

Savannah Petroleum
In its AGM update today SAVP say that they are in the final stages of the Ministerial consent process which will be followed by the long-form documentation procedure. Following that the transaction implementation will occur as per the the Implementation Agreement as announced in February of this year succeeded by the supplementary admission document. Whilst this has had the effect of creating a further slight delay in closing the deal I have seen a number of similar delays in Nigeria held up by the recent elections.
In Niger the Amdigh-1 well test is likely to be approved following the Seven Energy completion which should bring the country back into play as an important part of the significant upside in the Savannah play.

Tier - We can all relax now and enjoy the sun. Never much fun when the SP is slowly grinding down. Well done all for holding out. Good luck, Tier.

Thanks, Risky. Topped up on that. If already signed off by Kachikwu, then that's good enough for me. (Too, it would explain AK's previous confidence that a deal would complete in Q2). Highly unlikely in my view that the new minister will review and reject such a decision. Buhari has already had much criticism for stalling the economy through delaying these appointments - I can't see the new man wanting to add further to delays (or Buhari allowing him to do so) - the Nigerian people need the economy to move forward rapidly now. Almost done and dusted imo.