The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
In a statement, Andrew Knott, CEO of Savannah Energy, commented: "We are pleased to have reached this agreement with SNH. This transaction is in line with our strategy to monetise our interest in COTCo and to reduce our net debt position. We believe it is a positive step towards unlocking the value in our portfolio and delivering Projects that Matter in Africa."
Tom Winnifrith
@TomWinnifrith
Put another way: Mr market is almost as bearish as me. Maybe #ZPHR is not such a success after all? Folks can listen to smooth talking promoters if they wish, I trained as an oil analyst and look at hard numbers. SELL
TiL - Even in Egypt there are issues with late payments, which will go someways to explaining why Petronas / SDX / Apex and Dana are wanting to leave the country.
There are clearly issues in most countries that are in Savannah’s back yard, so to speak. You certainly can’t knock AK’s determination and ambition to get deals done. Though it does sometimes feel like he’s banging his head against a brick wall.
Trouble is they have been talking about a pipeline for over 10 years as per below article. Hopefully recent events in Sudan should been the matter to the forefront.
https://www.bbc.com/news/world-africa-16720703.amp
Why do we need an RNS tomorrow to cover the webinar ? The webinar is designed to give investors an opportunity to hear from Colin re the current situation on the ground in relation to the recent well incident and for investors to ask any questions they may have.
He may also give an update re the rest of the portfolio. IMO.
To be honest I’m personally not bothered when we get the admission document because I intend to stick with SAVE for several more years yet, to see what light is at the end of this very long tunnel. Hopefully the lights don’t go out before we get there OR my lights for that matter eek :)
Apologies it doesn’t give you an answer for the thread title.
Snippets from article…
Relative national stability and global economic tailwinds have fanned speculation about renewed investment. British firm Savannah Energy’s decision in December 2022 to buy oil fields from Malaysia’s Petronas is the latest example of surging interest in South Sudan’s resources.
Likewise, investors are eagerly awaiting the 2023 South Sudan oil and power conference to see what sort of incentives are on offer. South Sudan has been using the platform to promote investments that help stabilise the national budget. Oil accounts for up to 90% of government revenues.
New investment could affirm South Sudan’s status as east Africa’s largest oil producer. The country is a member of OPEC+, a grouping of oil exporting countries. It currently pumps an estimated 150,000 to 170,000 barrels a day.
Regular squabbles with Khartoum over diversions of South Sudanese oil and transit fees still occur. But Juba adroitly manages relations with its northern neighbour. It depends on Sudan for transporting its crude to global markets. Petrodollars are forecast to accelerate GDP growth to more than 6% in 2023.
https://theconversation.com/amp/south-sudans-oil-and-water-give-it-bargaining-power-but-will-it-benefit-the-people-197725
Of interest ….
South Sudan exports its crude oil via pipeline from Hegleig and Paloch to Khartoum and then to Port Sudan.
South Sudan’s economic lifeblood is intertwined with that of Sudan. Both nations are oil-dependent, but South Sudan maintains the bulk of the region’s 3.5 billion barrels of proven oil reserves, while Sudan owns the export pipelines, the refineries and sea access. One is useless without the other. Based on that interdependency, the two nations signed an agreement in 2012 under which South Sudan would compensate Sudan for the loss of oil production revenue and for the destruction of pipeline infrastructure caused by the civil war.
The compensation was agreed to amount to USD $3 billion, to be paid as a fee per barrel of oil produced, while the reconstruction of the oil infrastructure is expected to cost up to $1.5 billion according to the South Sudanese Petroleum Ministry. Initially designed to last for three and a half years, the Transition Financial Arrangement was extended in 2016 to reflect the collapse in oil price and global demand. In December 2019, the document was once again extended for a three-year period, set to end by March 2022. It establishes that South Sudan should pay $26 for each barrel transported through the Greater Nile Pipeline (GNP), operated by Petrolines for Crude Oil Ltd., and $24.1 for each barrel that passes through the Petrodar Pipeline, operated by the Bashayer Pipeline Company.
These fees include the actual crude oil transport costs and a $15 per barrel fee that corresponds to the $3 billion South Sudan must compensate Sudan for. After 2022, if no further extensions are needed, the cost per barrel should come down to $9.1 and $11 for the GNP and Petrodar pipelines respectively, reflecting the conclusion of that payment. The agreement also states that South Sudan must supply as much as 28,000 barrels of crude oil per day to the Khartoum refinery.
“Dunno about that think being well insured comes first you can afford to lose a few personnel then. Maybe even save on bonuses that way too.”
“Yet I'm not.Not in the slightest Mt. Must be my capitalist upbringing”
I think your posts speak volumes.
Recap -
The apparent pressures encountered and flow rate of the well appeared very high during the blow-out, which might suggest that the volumes and the fracture network encountered by the well are very large. An analog well, the Cane Creek 12-1 well flowed at a rate of 10 mmcf/d for months while in production.
Valuation
Our ReNAV is unchanged at £0.19 per share.
Chad rejects Savannah claims gross breach of contract.
The country attributed increased production to “local Chadian managers who were no longer restrained by ExxonMobil’s pre-exit policies”.
Chad has issued a response to Savannah Energy’s contested plans in the country, denying the company had anything to do with more production.
Savannah issued its report on the first quarter yesterday, including a number of points on Chad. The company bought ExxonMobil’s assets in the country in December but lost them to nationalisation in March.
A statement from Chad today said Savannah’s claims were false. Chad “cannot leave such wrong claims pertaining to its strategic assets unchallenged”.
Savannah has no rights to the assets in Chad, the country said. The sale from Exxon “grossly breached” legal and contractual requirements, Chad said. This covers both the pipeline assets and the upstream Doba Basin.
The accusation of a gross breach of contract covered the stake in the Chad section of the pipeline and the longer Cameroon section.
“Chad has a responsibility to ensure that assets of strategic importance are developed and operated in the best way possible for the benefit of the country and the stability of the region”, it said.
Who benefits
Chad also denied that Savannah had any impact on increasing production in the upstream. The company has claimed that its involvement resulted in production growing by 9% after completing the deal.
Savannah has reported production of 29,100 barrels per day from the Doba Basin in the first quarter. The independent has said it planned to “significantly increase production further through an active investment programme”.
The country attributed this success, instead, to “local Chadian managers who were no longer restrained by ExxonMobil’s pre-exit policies”.
Furthermore, Chad said Savannah had relied on financing from Exxon to carry out the acquisition. “Savannah Energy would be hard-pressed to prove any financial or technical contribution to the operations of the Doba fields between December 2022 and March 2023”.
Lastly, the government said Chad was open for business and investment. However, the country will “assert its right to ensure that its sovereign prerogatives enshrined in contracts and laws are respected”.
https://www.energyvoice.com/oilandgas/africa/ep-africa/496381/chad-savannah-gross-breach/