Member Info for Porschefund

My understanding is that even if the whole of the Chad/Cameroon deal had gone through and the SAVE SP rose accordingly, Rule 14 of the LSE AIM rules meant that not all the RTO Class Tests would have been met (100% of Gross Assets, Profit, Consideration or Gross Capital)
I am of the opinion that AK knew how the market would react to the C/C announcement and timed the South Sudan deal to avoid the negative reaction.
SAVE needed time to explain the C/C deal more fully and the market needed time to absorb it. The increased Accugas revenue guidance given by SAVE and its probable impact on net debt outlined by Zengas will be clearer when the annual results are released (7th June last year). The RTO suspension gave the time needed.
It’s anybody’s guess when we will hear more about the SS deal, but we could know more about the Exxon C/C deal before the suspension is lifted and I don’t see the current position as negative as some posters fear.
Chad’s challenge to the Exxon deal has been referred to the International Chamber of Commerce in Paris, according to the ICC’s Dispute Resolution Statistics the average duration of proceedings in cases that reached a final award in 2020 was 26 months.
From the Supplemental Admission Document the maximum ringfenced debt to Exxon under the Exxon Prepayment Facility is US$170m, if FinnCap are correct the cash acquisition costs are recovered in 3 -6 months.
Therefore if SAVE lost the ICC hearing we could still see 18/24 months of income based on say 10,000 bopd at a net back of say US$50/bbl (2021 Annual Results 2022 CPR forecast US$36.8 at US$60/bbl) plus pipeline transit fees. Any clawback from a negative outcome should also be mitigated by the purposely created corporate structure.
Add the complication of a six-month timeframe to integrate computer systems, the US$170m debt looks like a risk worth taking, including the risk of reputational damage, particularly when the introduction of the Exxon Prepayment Facility gave SAVE the opportunity to use the previously agreed debt to fund the SS deal without referral to shareholders or additional debt funding.

No nothing TIL. I will post if I get a reply.

Savannah Chad Inc
New overseas company formed in Bahamas today. Its name and registration location suggests this company will be linked to the distribution of the oil revenue from Chad.
https://find-and-update.company-information.service.gov.uk/company/FC040259

Sorry LST I misread your question. You might also like to try the the two Camarco partners who are listed as contacts on the last RNS. I am guessing at the email addresses but there’s a good chance they are billy.clegg@camarco.co.uk and owen.roberts@camarco.co.uk

violet.wilson@camarco.co.uk

I am hoping that this mornings RNS is not the extent of February's news flow. But at least Malcy approves.

"Readers know that I don’t always comment on NED appointments but here Andrew Knott has again come good with a highly experienced African expert to advise the board. "

For what it’s worth this is the reply I received this morning from IR.

Thanks for getting in touch. While I’m not at liberty to confirm either way on an operations update, the Company expects to release further newsflow in February.

Unfortunately not NtM.
The optimist in me is hoping that that AK wants to announce news on SS at the same time, and will delay the trading update accordingly.
I have asked IR if a trading update is planned, I will post if I get a reply.

We had a trading update on Monday 25th January 2021 and Monday 24th January 2022. Perhaps we will see a trading update on Monday 23rd January 2023.

Could it be Savannah Energy South Sudan ?

I have put a translation on ADVFN for this who want to try and make any sense of it! The translation is too verbose to post on here!

I think you may be right Komakino I hadn't spotted that Jaqueline Anne Mackie is a Swiss resident.

New company incorporated in the British Virgin Islands last Friday – Savannah Offshore Limited.
I would assume this is connected with the Chad acquisition.

https://find-and-update.company-information.service.gov.uk/company/OE013146/persons-with-significant-control

Welcome NtM- you are in good company. LOL.

SHT eyes Petronas stake
In parallel to the ExxonMobil dispute, state-owned Société des Hydrocarbures du Tchad (SHT) is also trying to buy back the 25% held by Petronas in the same Doba deposits. If successful, SHT would own 60% of the shares. Savannah was also in line to buy the Petronas assets for $266m, but its plans were thwarted by oil minister Le Bemadjiel. He travelled in early December to the Malaysian major's headquarters in Kuala Lumpur in order to stop the process and provide guarantees on how Chad intended to match the sum offered by Savannah (AI, 19/12/22). The sale to Savannah has since then been suspended.

Savannah wins arbitration battle after junta blocks Exxon asset takeover

The Chadian authorities, unhappy with the conditions under which the US major ExxonMobil left the country, are preventing Savannah Energy from resuming operations on the Doba oil deposits. Savannah has referred the case to the International Chamber of Commerce in Paris.

Issue dated 10/01/2023 Reading time 2 minutes

The open war between Savannah Energy and the Chadian state intensified late last month. Chad says the British junior announced the takeover of ExxonMobil's shares in the Doba deposits without its agreement, and it has since sought to prevent the company from operating the production sites.

Savannah last month initiated an emergency procedure at the International Chamber of Commerce (ICC) in Paris, which appointed Phillip Landolt of the Geneva law firm Landolt & Koch as arbitrator to rule on the legality of a ruling handed down on 14 December by a Chadian court. That court ruled that the transfer of assets between ExxonMobil and Savannah should be stopped immediately. According to our sources, on 7 January Landolt concluded that this ruling was illegitimate and that any contractual dispute should be resolved at the ICC as stipulated in the contract. A political battle with the Chadian government is now on the cards, as this latest ruling has by no means resolved the situation.

As the emergency procedure only allows for the issuance of opinions and not definitive rulings, no financial penalties can be imposed via this mechanism. Before deciding to refer the case to the ICC, the firm last month proposed a 30-day conciliation period, but the Chadian justice ministry would have none of it.

Chad expels Savannah expats
The arbitration scenario is rooted in the extreme tension prevailing at Komé, the site where Savannah's operational teams went to work after the departure of ExxonMobil executives from the country in early December. Oil minister Djerassem Le Bemadjiel flew to Komé in a private jet on 22 December to inform the Savannah expatriates that they had 48 hours to leave the country (AI, 22/12/22). The six foreigners, including the director of the subsidiary Nicolas de Blanpré, left with the minister for N'Djamena before returning to Europe.

Chad's interim regime has not accepted ExxonMobil's departure and wants to pre-empt its assets. But the main irritant concerning ExxonMobil's deal with Savannah remains the question of its departure bonus, which is not provided for by law. Chad wants $160m, but the US major is offering only $25m (AI, 16/12/22).

The cancellation is simply advising the market that the official planned return to AIM following completion of the Exxon deal will not now happen because id the Petronas South Sudan suspension. Main Market next year Rodders!

https://www.energyvoice.com/oilandgas/africa/ep-africa/468190/savannah-exxon-chad-petronas/

A couple of quotes from Energy Voice

"Savannah will publish a new admission document in early 2023"

"Savannah funded the Exxon deal through cash resources and a pre-payment facility. The company has said it intends to finance the South Sudan deal through a similar combination"

Despite a price tag of US$407m, Savannah expects to repay the cash acquisition cost from cash flow generated by the new assets in just 3-6 months”

I am no longer concerned ;-)

Thanks SofG - You make valid points and I am not overly concerned. Perhaps I should have used the word risk rather than concern, the risk being the possibility of a lower POO in 2023 and 2024 but this should be more than offset by increased productivity and further acquisitions funded by longer term debt.