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WelshMusk: regarding your observation that "resolution 14 will require a Court to approve the distribution and check that creditors are protected and also that SAVE is adequately capitalised” I would add that the auditors will be heavily involved in giving the court, the directors and creditors the comfort they need.

An AI interpretation of the auditors involvement reads as follows:

For a Public Limited Company (PLC) to cancel its share premium account, it must execute a formal capital reduction. Because this impacts the "creditor's buffer", UK law requires High Court approval, shareholder approval by special resolution, and auditor involvement to ensure creditors are not prejudiced.

Key Steps and Auditor Involvement

1. Auditor Comfort Letter / Report

Auditors are heavily involved in validating the company's financial position before the court approves the cancellation. They prepare a report or a comfort letter for the directors and the court, verifying that:

The company's available reserves and assets are accurately stated.

The cancellation will not leave the company with negative assets.

Creditors will not be placed at an unfair risk of non-payment.

2. Creditor Protection and Lists

The court will require the company to draw up a list of all creditors. The auditors will assist management in verifying this list and proving that all known creditors are either paid off, have consented to the cancellation, or are adequately secured.

I think it's reasonable to ask the question why propose the share premium cancellation if SAVE are not confident of auditor sign off?

In terms of timing, I note that the FeverTree cancellation of the share premium referenced by Noix on 9th May was approved at the AGM on 17th October, approved by the Court on 11th November and completed on 13th November. A total of 28 days. If SAVE can achieve the same timescale, completion would take place before the end of H1 and would be included in the half year figures.

The work involved by the auditors would be akin to the work involved in assessing the going concern sign off shareholders are hoping to see reported for the Dec 25 accounts and if an auditors report is added, to the June 30 interims.

Could the auditors involvement and the report they will be required to produce be the reason for the early AGM on 1st June and the proposed subsequent issue of the annual accounts later in June?

At 30th June 2025 distributable reserves amounted to $244m, assuming breakeven in the year ended 30th June 2026 the total distributable reserves will amount to $420m after cancellation of the $176m share premium. A significant sum for dividends/buyback.

A pessimistic view is that negative retained earnings in the year ended 30th June 2026 has significantly eroded the $244m, and future dividends/buybacks will rely on the cancellation of the share premium.

Zengas is alluding to the more optimistic possibility of a significant dividend/buyback using cash generated from extraordinary events.

The timing may be a coincidence, but the resolution requires 75% plus support so the AGM is the logical time to propose the resolution.

As all Directors must sign a solvency statement declaring the company is solvent and able to pay its debts, I am more optimistic than pessimistic on the reasons for including the resolution.

It's unfortunate that a second renewables proposed acquisition with "a strong payment history" is hidden within the update.

"Future M&A Activity

The Company continues to view mergers and acquisitions activity as a core driver of potential future value creation and is actively pursuing opportunities across both the hydrocarbon and renewable energy sectors.

Savannah is in an exclusivity period in respect of the proposed acquisition of majority interests in a portfolio of renewable projects located in Sub-Saharan Africa, with an aggregate gross capacity in excess of 100 MW and a strong payment history. The proposed acquisition would also include a portfolio of renewable development projects in the same country with a targeted gross capacity of approximately 40 MW. The transaction, which remains subject to the execution of long-form documentation and other customary conditions, is envisaged to involve a potential gross consideration in the US$70 million to US$90 million range and would be expected to be funded through a combination of debt and cash resources.

This proposed acquisition represents the most advanced transaction currently being progressed by Savannah. However, shareholders are advised that there can be no certainty that the transaction will proceed on the above summarised terms or be completed at all. The Company maintains an active business development pipeline comprising a number of potential transactions at various stages of evaluation, although no other opportunities have, at this stage, reached such a level to necessitate disclosure under applicable regulations. The Business development pipeline is sufficiently large that we are however confident of announcing further transaction(s) over the course of the next 24 months in the African oil and gas and power space”.

This acquisition is in addition to the Klinchenberg Transaction that is targeted to complete in Q1 2026.

The statement that the "proposed acquisition represents the most advanced transaction currently being progressed by Savannah" appears to me to be a message to the market that a suspension from a reverse takeover is unlikely in the foreseeable future, perhaps to alleviate PI jitters in this respect.

Only reiterating the contents of the results RNS's but good to hear AK is excited!

Chief Executive Officer, British independent energy company, Savannah Energy Plc, Andrew Knott, barely conceals his joy and excitement these days. When The Nation met him over the weekend, an evidently elated Knott confirmed that “2025 has been a year of strong progress against the nine focus areas we set out at the beginning of the year, one of which is increasing our rate of cash collections in Nigeria, with performance remaining on track.”

https://thenationonlineng.net/seizing-the-opportunities-in-hydrocarbon-power-sectors/

A first Gazette notice for compulsory strike off in three months dated 2nd December 2025 has been filed at Companies House for 13 SAVE subsidiaries due no doubt to the late filing of statutory accounts. Whilst the strike off will be cancelled by objection and/or the filing of the late accounts after the General Meeting, the optics are not good and could have been avoided.

I have been in SAVE for nearly seven years and I have enjoyed reading NtM's informative, accurate and honest posts over that time.

Troll's however I ignore and suggest you do the same.

Interesting quote from AK although I suspect it’s aimed at the LSE rather than shareholders:

“As part of its normal course of business, the Board has also initiated a review of the appropriateness of Savannah's current AIM quotation and the potential alternative options available to the Company, including the possibility of seeking admission to another recognised stock exchange. This review remains at an early and exploratory stage. There can be no certainty that it will lead to any changes to the Company's current market arrangements. The Company intends to engage with its investor base on this matter during the course of Q4 2025”

Interesting to note that SAVE has changed the name of SSES Power Ltd to Savannah Energy EA Limited.

SSES Power Ltd was a renewables subsidiary I would guess that EA stands for Eastern Africa.

It's perhaps a sign that progress is being made in Eastern Africa? South Sudan?

Https://businessday.ng/energy/article/accugas-secures-n773bn-local-loan-to-exit-dollar-obligations/

I doubt this would have been possible if there were liquidity issues.

Macy’s comments

I don’t think that there is anything here that should cause concern for Savannah investors, as the June 6th RNS made clear, SAVE is in the process of appointing new sets of auditors both in Nigeria, where a ‘big 4’ company is targeted and in the UK ‘an experienced mid-tier firm for the company and the Group.

These appointments take a while to bed in and it should be noted that the RNS of 6th June did actually announce the unaudited results which CEO Andrew Knott discussed at length and also indicating that progress on auditing was ‘significantly advanced’ not something he could say if the numbers weren’t complete.

I get the strong impression that whilst this delay is unfortunate it happens as a direct result of changing auditors in more than one country and books which are by their very nature complicated and extensive. I am completely comfortable with the unaudited results already presented and expect the fully audited package to be published very soon.

Is anybody going to the AGM on Monday?

If so would they please ask questions on behalf of this board?

IMO, unless a buyer is still active, the price is likely to drift ahead of a possible short term suspension from 1st July due to the late filing of the 2024 Annual Report.

Hxulcolrdoh – I presume by -"here are some garbage numbers but we feel they are more representative of the underlying business" nonsense- is a reference to SAVE highlighting in the notes (but excluding from the accounts) the value of invoices raised and paid for under take-or-pay contracts but excluded from the accounts by making a contra provision for the invoiced value (not marginal cost) of make-up-gas?

I would be grateful for your elaboration on why you think this is nonsense?

Malcy’s opinion.

Having returned from suspension in March, SAVE has now been able to provide the market with a comprehensive update concentrating on its core Nigerian oil & gas assets. Since the SIPEC deal was completed the company report on the production at the Stubb Creek oil field and say that it has increased by approximately 15% and that 2P oil reserves have been upgraded by 29%.

They also say that the planned Uquo Field drilling campaign, set to commence in Q4, has the potential to add further reserves, resources and production capacity which would be capable of easy and quick monetisation. The updated figures are also impressive, total revenues are up 19% and perhaps more importantly cash collections for the quarter were $124.8m ($117.7) and will increase further in 2026 after the investment programme reaps its rewards.

The company are undoubtedly rejuvenated and have pledged to the ‘ticking-off’ process whereby they deliver on the nine focus area projects which are in the corporate psyche and in which will be reported on in the full year figures in June.

The shares have not appreciated since the raise and I would have expected them to do so as the operational numbers are exceptional in particular leading to the total revenues and cash collections announced here and clearly with much more to come. These numbers make Savannah look incredibly cheap with upside to 30p easily achievable and maybe more in the longer term.

Apologies Scotpak - I misread your post.

Scotpak- I think you mean 1,540,000 extra shares. Good to see he is practicing what he is preaching.

Zengas - You ask “why give them 6 months (from 4th March). Is this to tie up some other deal ?”

We understand that AK is frustrated by the AIM rules on suspension for RTO’s and the forthcoming AIM rule changes he mentioned at the coffee morning could mean future acquisitions will not lead to a suspension.

The following link summarises the proposed changes:

https://www.shoosmiths.com/insights/articles/shaping-the-future-of-aim-insights-from-the-london-stock-exchange-discussion-paper

The LSE has asked for responses to the discussion paper to be sent to AIM Regulation at aimnotices@lseg.com on or before 16 June 2025, after which it will consider the feedback received. Any proposed changes to the AIM Rules will be put forward for market consultation.

Perhaps AK expects the proposed changes will be in place by September?

As Cavendish Fiduciary (Jersey) Limited is the holding company for the Company Employee Benefit Trust shares isn't its shareholding reduction notice just a recognition that the shares are no longer held for future employee incentives, rather than a decision to divest.

4,995,892 shares of the 5,274,456 share reduction were reported as the exercise of share options by the Directors (mostly AK and NB) in the 4th March £30.6 fund raising.

Https://x.com/savannah_energy/status/1905312859053076636?s=46&t=Vq2iHG7pxKsemy_CqcQPcA

Perhaps I am reading too much into this but I am surprised to not get an update on Friday. I emailed IR on Friday to ask if an RNS will be released on Friday but unsurprisingly I didn’t get a reply.

Looking back at the previous SS updates, the subsequent update has always been timely.

If there is nothing to announce and the next RNS is nothing more than a cut and paste with a new future date why not keep to the commitment to update the market by the end of February?

A conclusion to the SS deal is perhaps a little optimistic but perhaps the latest charge filings at Companies House suggest Monday’s RNS maybe being finalised over the weekend and will be a bit juicier than widely predicted.