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I assume paying the salaries is a tactical move. I hope SAVE are going to be able recoup the monies spent on salaries in the event of a failed arbitration.
‘The salaries of the workers and managers of the former ExxonMobil subsidiary are being paid by Savannah, despite the nationalisation, and the firm is awaiting the outcome of arbitration launched last year at the International Chamber of Commerce (ICC) after a Chadian court decision of 14 December suspending the sale (AI, 05/04/23). A decision by the three appointed judges at ICC is expected next year.’
Due to the current situation in Sudan trying to second-guess the chain of events for hopefully the eventual sign off of the SS assets is like me trying to pick the winner numbers for the National lottery, I fail every time but I live in hope :)
That’s a commitment and good to see.
Mr Joseph Pagop Noupoué has subscribed for 6,095,726 new ordinary shares in the capital of the Company ("Ordinary Shares") at a subscription price of 26.25 pence per share. Following this transaction, Mr Pagop Noupoué's interest in the Company is 6,095,726 Ordinary Shares, representing approximately 0.46% of the total voting rights of the Company.
At £2 a share I’d even treat Mrs.B to a Chinese.
I think once AK gets a couple of hydrocarbon deals signed off and delivered without issues, folk will more than likely accept a couple of non- runners in his pursuit of ‘sale of the century’ deals from the majors.
An interesting couple of years that’s for sure.
If I’m not mistaken SAVE have updated their website ie . ‘Renewable Energy Division’.
Extract….
‘We expect to continue to acquire hydrocarbon businesses and to re-invest the cash flows we generate in both hydrocarbon AND renewable energy projects. We firmly believe Africa needs both if it is to be given the opportunity to grow and lift ever more of her citizens out of energy poverty. Developing our renewable resources speaks to the importance of diversity of energy supply.’
https://www.savannah-energy.com/operations/niger/renewable-energy-division/
A bit more info re the project.
The 75 megawatt Bini a Warak Hydroelectric Project will be located in Cameroon's Adamwa Region. The Bini Project, Savannah Energy said, "is expected to provide clean, stable and affordable power" to the area. It is also expected to support existing local electricity demand and enable a number of energy-intensive industrial projects, principally in the cement and metallurgy industries.
Savannah Energy further anticipates that the Bini Project will increase northern Cameroon's on-grid electricity generation capacity by over 50%, with the potential for power to be dispatched into Cameroon's southern electricity grid. The government aims to connect the northern and southern networks by 2026.
The Bini Project involves the construction of a dam on the Bini River, together with an 82 kilometre squared reservoir and associated tunnels, powerhouses, substations and a 225 Kilovolt transmission line connecting the Project to the northern grid. Project sanction is expected in 2024 and first power is predicted to be targeted between 2027 and 2028.
Savannah Energy said that it intended to fund the Bini Project with its own internally generated cash flows and project-specific debt.
"The Government is delighted to partner with Savannah Energy in order to deliver clean and affordable electricity to support our industrialisation plans for northern Cameroon. The Bini Project will address the current electricity shortages caused by the hydrology deficit of the Ladgo Dam and reduce the consequent reliance on expensive thermal generated power in the region," said Essomba. He further stated that the government "will provide all the support needed to enable Savannah to deliver first power from this exciting project in the 2027 to 2028 window."
Savannah has this morning announced the appointment of Joseph Pago Noupoué as a Non-Executive Director and Chair Designate, with immediate effect. As previously announced, Steve Jenkins plans to step down from his role as Non-Executive Chair at the close of the next AGM, having completed over eight years in the role, but will continue to serve as a Non-Executive Director of the company.
Mr Noupoué is a qualified lawyer and a senior partner at EY, currently appointed as EY Managing Partner for Cameroon and Tax Leader for French-speaking Africa. He has very considerable African experience, including in the energy sector, and we congratulate him on his appointment. In conjunction with this, Mr Noupoué has agreed to subscribe for new shares in the company, equating to a total investment of c.US$2m.
In a separate announced, released at the close yesterday, Savannah confirmed that it has signed a memorandum of agreement (MO) with the Cameroon government for the development of the 75MW Bini a Warak hydroelectric proiect in the north of the country. Savannah intends take over development of Bini a Warak on an independent power producer (IPP) basis, ahead of anticipated project sanction in FY24F and targeted first power by FY28F.
As recently reiterated by the company, publication of an admission document relating to the substantial South Sudanese reverse takeover transaction is anticipated in the first half of this year.
Ahead of this, we have been continuing our financial remodelling work and expect to publish revised FY23F forecasts (post-Chad and pre-South Sudan) shortly. Our longstanding Buy recommendation on Savannah remains under review, pending forthcoming publication of the AIM Admission Document and lifting of the shares' current suspension.
This seems like a pretty good deal for SAVE, selling 10% of the shares in COTCO to SNH for $44.9m will enable some payment of the existing debt facilities. Savannah will keep 31.06% and the dividend until the date of payment.
https://www.malcysblog.com/2023/04/oil-price-savannah-deltic-trinity-and-finally/
You will pleased to know last post from me today :)
Savannah has announced that it has signed an agreement with Cameroon national oil company SNH to sell to SNH 10% of COTCo (through which Savannah holds its c.41% operated interest in the ›900km Cameroon section of the Chad-Cam pipeline and associated infrastructure).
The cash consideration payable by SN- to Savannah under the terms of the deal is US$44 9m with the proceeds to be used by savannah to partially repay existing debt facilities.
Completion will result in Savannah's ownership interest in COTCo reducing to 31.06% from 41.06%). is subiect to the satisfaction of certain conditions precedent and is expected to occur ir the second half of this year. Prior to formal completion and payment of the consideration, Savannah will retain the dividend entitlement attaching to its existing c.41% ownership interest.
We believe that this is a very neat deal for Savannah - being undertaken on equitable terms with SNH, generating cash proceeds which will go a long way to offsetting the final completion amount associated with the company’s Chad-Cam acquisition and facilitating a further material reduction in closing FY23F net debt.
In addition, we believe that it should further enhance Savannah and SNH's strong alignment of interests as partners in this section of the Chad-Cam energy transmission system.
As recently reiterated by the company, publication of an AIM Admission Document relating to the substantial South Sudanese reverse takeover transaction is anticipated in the first half of this year Ahead of this, we have been continuing our financial remodelling work and expect to publish revised FY23F forecasts (post-Chad and pre-South Sudan) shortly.
Our longstanding Buy recommendation on Savannah remains under review, pending forthcoming publication of the AIN
Admission Document and lifting of the shares' current suspension.
Cameroon midstream asset sale.
Savannah has agreed to sell 10% of its 41.06% stake in COTCo, the Cameroon midstream oil pipeline company it bought as part of the recent ExxonMobil acquisition to NH, the Cameroon national oil company, for US$44.9m. Completion of the deal is expected in H2 2023, and Savannah will pay down debt with the proceeds.
- COTCo owns and operates the 903km Cameroon section of the Chad-Cameroon export pipeline, the Kome Kribi 1 floating storage and offloading facility and related infrastructure. The pipeline has a 250 kbopd nameplate capacity and is the only international export route for oil production in Chad. During Q1 2023, COTCo transported an average of 128.8 kbopd of crude oil, with a total of 11 liftings conducted on behalf of its customers
- This is a smart move from Savannah. It crystallises value early from the ExxonMobil deal that can be used to pay down debt and demonstrates the remaining value of this midstream business - implying a valuation of ~US$139m for Savannah's retained 31% stake.
- It should also help cement relationships with the Cameroon government and aligns their joint interests in the Cameroon pipeline. This is an important strategic asset for the Cameroon government, which is keen to increase the throughput of the pipeline by taking more oil from third-party operators.
- Savannah's shares remain suspended and our forecasts under review. Readmission onto AIM is expected in H1 2023 once an Admission Document on the Petronas South Sudan RTO is published.
M
AA
@ finncap.com
AK suited and booted with a big smile.
https://twitter.com/savannah_energy/status/1648945350294614018?s=46
Almost complete.
Niger to start crude exports by end-2023.
The country is on track to more than quintuple its oil production and enter the global export market later this year.
The flagship Niger-Benin pipeline project is “very advanced” and c.85–90pc complete, Maman Kailou Pantcho, head of communications at Niger’s energy ministry, tells Petroleum Economist. The export pipeline means the landlocked nation will be able to ramp up its crude production to 110,000bl/d and access global trade via an export terminal on Benin’s coast at Seme. “Once commissioned, the pipeline will allow Niger to put 90,000bl/d on the international market,” explains Kailou.
https://pemedianetwork.com/petroleum-economist/articles/upstream/2023/niger-to-start-crude-exports-by-end-2023/