focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
Savannah Petroleum PLC will be presenting at an investor evening hosted by Turner Pope Investments (TPI) Ltd. The event is in London on Monday 14 May and will commence at 5.30pm. To Register your interest, please email info@turnerpope.com or call 0203 621 4121
All, please see link below to a Proactive interview with Paul Welch, CEO of SDX Energy, today. http://www.proactiveinvestors.co.uk/companies/stocktube/9224/sdx-energy-makes-gas-discovery-at-lms-1-well-in-morocco-9224.html
Savannah Petroleum PLC will be presenting at an investor evening hosted by Turner Pope Investments (TPI) Ltd. The event is in London on Monday 14 May and will commence at 5.30pm. To Register your interest, please email info@turnerpope.com or call 0203 621 4121
All, a Proactive Investors interview with Andrew Knott, CEO of Savannah Petroleum, is now live - Savannah Petroleum �a much more grown up business� focused on delivering value Link below: http://www.proactiveinvestors.co.uk/companies/stocktube/9149/savannah-petroleum-a-much-more-grown-up-business-focused-on-delivering-value-9149.html
All, link below to Vox Markets podcast with Andrew Knott. His section starts at 11:10. https://www.**********.co.uk/blogs/ecr-minerals-ecr-savannah-petroleum-savp-eco-atlantic-oil-gas-eco-malcy-savp-echo-sdx-rkh-fog-eco/
Comments from Mirabaud and Cantor Fitzgerald on this morning's announcement below. Mirabaud E&P research Savannah Petroleum � First strike 23 April 2018 Savannah Petroleum has announced that it has struck oil with its maiden exploration well, situated in the Agadem Basin, onshore Niger. The well was targeting the Bushiya prospect in the R3 block (SAVP 95% interest), and confirmed 10 metres of oil bearing reservoir across two intervals. Light oil, consistent with other discoveries in the basin has been recovered to surface, with reservoir qualities described as �excellent�, which is also consistent with the regional play. In our view Savannah could hardly have got off to a better start. Given the regional success by CNPC (>1bn bbls of 2P reserves in adjacent acreage), the well was low risk from a geological perspective, however this well has gone some distance in validating the concept that the play does indeed extend into Savannah�s acreage. Only with further analysis will accurate volumetrics be established, however with eight follow-on targets already identified by Savannah and reviewed by auditor CGG, with >100 additional less mature prospects and leads, the significance of the Bushiya result goes further than this discovery alone. The rig will now proceed to the Amdigh wellsite to drill the next well in the campaign, and given its similarities to Bushiya, Savannah will hope to continue its success at the drill bit. Cantor Fitzgerald Savannah Petroleum ↑ (SAVP.L, 27.75p, �227m) announced a discovery at the Bushiya-1 exploration well as an oil discovery. Bushiya-1 is located on the R3 portion of the R3/R4 PSC Area in south east Niger. Well encountered 10m of net oil pay across two Eocene Sokor intervals, with excellent reservoir quality. This appears to validate the geological model that SAVP has, and the result appears to be similar to that encountered by the other wells in the region (drilled by CNPC). The well was targeting c30mmbbls of resource, and whilst testing will be required to assess the true volumes discovered, this is a hugely encouraging start for the Niger exploration campaign. Well has been suspended, with testing to be carried out once the other two exploration wells in the current campaign are completed. Rig now moves to drill the Amdigh-1 exploration well. This is a great result for SAVP, and the result de-risks the upcoming wells. Positive
All - good piece on SDX in AfrOil. Weblink is: https://newsbase.com/publications/afroil-africa-oil-gas SDX Scores Heavy Oil Strike SDX Energy�s North African business is gathering pace, with a heavy oil discovery announced in Egypt on March 14 and a gas find in Morocco on March 9. The Rabul 5 well, in Egypt�s West Gharib concession, was drilled to 1,609 metres and found 46 metres of net heavy oil pay, in the Yusr and Bakr formations, with porosity averaging 18%. SDX said evaluation on the find was continuing and that it expected to complete the well as a producer, connected to the Meseda central processing facilities. Once this well has been completed, a second appraisal well, Rabul 4, will be drilled on the field. "We are pleased to continue our recent run of drilling success with this oil discovery at Rabul 5. This well encountered the thickest section of pay sands seen in the Rabul area to date, demonstrating the significant oil potential contained within the licence,� said SDX�s CEO, Paul Welch. �We have further drilling activity planned for the concession over the coming months and we firmly believe that these activities will enable us to increase output from the licence and achieve our ambitious production plans for 2018.� SDX announced the Rabul 2 oil discovery in October 2017. This well found 31 metres of net heavy oil pay in the same two formations, with porosity of 20%. This was drilled as an offset to the Rabul 1 well, which was drilled in July 2017, and found 4.4 metres of heavy oil pay in the Yusr sands. In an operations update in mid-February, SDX said it had signed a contract with Sino-Tharwa Drilling for the ST-6 rig, to work on the Ibn Yunus-1X exploration well. This was due to be spudded in mid-March, on the South Disouq licence. This will be followed by two appraisal wells at the SD-1X find, before moving on to the Kelvin-1X exploration prospect. The Ibn Yunus-1X and Kelvin-1X wells are targeting up to 4.2 bcm of gas, the company said, and could be tied back to the SD-1X processing facility. SDX had announced the SAH-2 well, in Morocco, shortly before. The well, drilled on the Sebou permit, reached a total depth of 1,304 metres, finding 5.2 metres of natural gas pay, with 33% average porosity. This was the fifth find, of seven wells drilled, in the Moroccan campaign. There are two more wells to drill, with LNB-1 next.
All - thought you might like to see an interview with Andrew Knott, CEO of Savannah Petroleum, on Core Finance. http://www.malcysblog.com/2018/03/core-finance-ceo-interview-andrew-knott-of-savannah-petroleum/
Morning all - thought you might like to see Mirabaud's note on this morning's announcement. Perhaps the most exciting exploration programme of 2018 in the UK-listed E&P sector is set to start in the coming days. Savannah Petroleum (SAVP LN) has published an update on its three well drilling programme in Niger�s prolific Agadem basin, confirming that the first well (Bushiya) remains on track to spud by the end of the month. Adding some colour around its operations in country, the company noted that construction of the Bushiya well pad in the R3 block is now complete and fully manned and operational, with over 100 personnel on site, including the Great Wall Drilling rig crew and Savannah drilling supervisors. As previously flagged, the second and third wells will be drilled on the nearby Amdigh and Kunama prospects. At Amdigh, well pad construction is over 20% progressed and should be complete by the end of March. Following this, site preparation will start on the third and final firm well, Kunama. The wells will be drilled back-to-back with the same rig, with each taking 30-35 days to drill (plus 10-15 days for rig move in-between wells) suggesting initial results from Bushiya will be known by the end of April. Turning to the geology, the three wells will target analogous 3D-defined fault-block structures to those successfully drilled by CNPC across the licence border, with stacked oil potential in Eocene Sokor Alternances (primary target) and Eocene-Oligocene Upper Sokor horizons (secondary target). Overall, the initial campaign is targeting unrisked mean prospective resources of 110 mmbbls (105 mmbbls net to SAVP), split equally across the three targets (Bushiya 36 mmbbls, Amidigh 39 mmbbls and Kunama 35 mmbbls). Importantly, the chance of success in this basin is unusually high for pure exploration. In adjacent acreage, CNPC has recorded a success rate of ~75% in 127 exploration wells and a staggering 93% in the area immediately around the R3 drilling targets. For Savannah, success in any one of these wells would be transformational. We value the three prospects at 32p/shr unrisked (12p/shr risked), comprising 11p/shr for Bushiya, 11p/shr for Amdigh and 10p/shr for Kunama. On top of this, the acreage contains significant follow-on potential across multiple lookalike prospects. Savannah�s independent reserve auditor CGG has estimated some 2.8bn bbls of net risked resource across its wider licence area. As such, we would expect success in this initial campaign to trigger more drilling activity as SAVP looks to determine the size of the prize.
All - please see below for Mirabaud's comment on Savannah's announcement this morning. Savannah Petroleum (SAVP LN) issued an encouraging production update this morning, coinciding with settlement of December�s US$125m equity placing. The update shows production building strongly from its two producing fields, rising from an average of 14.2 kboepd (net) in November to 20.7 kboepd in February to date, and with impressive uptime rates of 100% (Uquo) and 98% (Stubb Creek), respectively. Significantly, this already puts Savannah in line with full year guidance of >20 kboepd, and with production still ramping up, sets the company on course to exceed expectations. The driver for the increased volumes has been the implementation of the World Bank guarantee on sales to the Calabar power station, which was signed at the end of September last year. The guarantee protects against default on the c.130 mmscf/d (22 kboepd) gas sales agreement (Savannah�s biggest contract), and is clearly providing the comfort to ramp up volumes. Meanwhile, the RNS includes a brief comment on the drilling programme in Niger, which is still on course to commence this quarter. The first well, Bushiya, is worth 11p/shr on our numbers (unrisked), but, more significantly, has the potential to significantly de-risk dozens of follow-on targets.
All - I thought the below Mirabaud note on SAVP this morning might be of interest. Savannah Petroleum (SAVP LN) has confirmed that it has received valid instructions from over 96% of Seven noteholders with respect to its exchange offer. The offer was a key outstanding condition on the Seven Energy reverse takeover, meaning that December�s US$125m placing is now unconditional, and trading of the new shares will commence on Friday this week. Not only does today�s news mean that the hard yards of the transformational deal are now complete, but with the new equity fully trading we expect Savannah to now be able to resume its exploration drilling campaign in Niger, which had been on hold for the past six months. The multi well exploration campaign is expected to kick off in the coming weeks, and with drilling centred on a region where CNPC has recorded a 93% success rate, its chances of delivering success at the drill bit are high.
Mirabaud note on this morning's SAVP announcement below: As part of the acquisition of Seven Energy�s integrated gas assets, Savannah Petroleum (SAVP LN) has launched an exchange offer for Seven�s 10.5% SNNs which will see SAVP buy out Seven�s bondholders for cash and shares. The exchange offer is conditional on the participation of 90% of SNNs by value which should be a formality given 92.9% have already entered into a lock up agreement supporting the transaction. In terms of timing, the expedited exchange offer will expire on 6 Feb and is expected to settle on or about 9 Feb, at which point the SSN consideration shares and second tranche placing shares will both be issued.
Savannah Petroleum (SAVP LN) has provided an update on its exchange offer to Seven Energy�s SSN bondholders, confirming that the scheme will commence in the coming days. The offer, which will be launched within a week, will remain open for at least ten days (down from the twenty days previously assumed), meaning that settlement is still anticipated in early Feb. This will mark a major milestone in the transaction, triggering the issuance of the SSN consideration shares as well as the conditional tranche of the placing shares (which will be admitted to trading shortly after), and effectively handing the keys of Seven Energy over to Savannah. Encouragingly, as of Friday 12 January, 92.9% of Seven�s SSN�s holders had acceded to the amended lock-up agreement � up from 90.2% on 22 December � comfortably in excess of the 90% threshold required for the exchange offer to succeed.
Savannah Petroleum (SAVP LN) has resumed trading this morning having agreed a transformational reverse takeover of large parts of Seven Energy, a distressed private Nigerian firm, which will see the company acquire Seven’s substantial integrated gas business in the southeast of the Niger Delta. Under the deal terms, Savannah will buy the upstream assets outright and team up with private equity on the midstream assets, retaining a carried minority interest. The result is an enlarged E&P company with a diversified asset portfolio, substantial free cash flow and minimal gearing. In our opinion, this opportunistic acquisition is highly accretive for Savannah shareholders, with a pay-back of ~3 years and a purchase price equivalent to just US$2.9/boe (EV/2P) and around 35% of invested capital. The Seven transaction marks an acceleration of Savannah’s diversification strategy and follows last year’s entry into Nigeria through an exploration tie-up with the Government. It fundamentally changes the shape of the business, adding material production and reserves to Savannah’s exciting but earlier stage exploration assets in Niger. The enlarged company will rank alongside London’s top listed oil & gas producers, boasting a high quality, stable earnings stream, fully-funded near-term exploration drilling and a progressive dividend policy (yielding 3.2% FY18). Given the compelling acquisition terms and clear strategic merits, we believe the transaction is a game changer for Savannah. We have yet to run our numbers, but at today’s share price the company is fully supported by its Nigerian business, which the CPR values at US$663m (2P reserves + 20% stake in Accugas) implying a discount of ~62%. At these levels investors are gaining free exposure not only to the development upside potential in Nigeria but also to exploration in Niger. The three well programme expected to start in January will target aggregate mean prospective resources of 110 mmbbls worth US$4.6/boe implying ~US$500m of unrisked value net to Savannah, with individual chances of success of at least 75%. We see the latest transaction as truly transformational for the company ahead of what is setting up to be an exciting 2018 with plenty of exploration driven catalysts.
All - please see below a link to an interview with the CEO of redT energy, Scott McGregor, on the back of this morning's announcement. https://www.brrmedia.co.uk/broadcasts/5a0999412acfc74f9342e864/redt-energy-cornwall-project-connects-to-uk-grid
Gem Diamonds H1 Trading Update BUY Gem Diamonds has announced a trading update for the first half of 2017, including Q2 operating results. The Letšeng mine in Lesotho continued to operate well, with diamond production steady at 24,599 carats in the period. The company achieved average diamond prices of US$1,779 per carat, up 20% from the same period last year. The most recent tender achieved a particularly encouraging US$2,385 per carat. Production guidance for the year is maintained, albeit towards the lower end of the range. We retain our 150p price target and Buy recommendation. *Four diamonds larger than 100 carats were recovered during the half year, with additional high quality stones being recovered that were slightly smaller. Post period end an exceptional 126.75 carat D-colour Type IIa diamond was recovered, bringing the total greater than 100 carat diamond recoveries in 2017 to five. *The Group had US$ 20.0m cash on hand at the end of June 2017, of which US$16.1m is attributable to Gem Diamonds. US$34.2m of the available facilities have been drawn down, of which US$25.0m relates to the Ghaghoo facility, resulting in a net debt position of US$14.2m at the end of the half year. *Post period end, the US$35.0m Revolving Credit Facility was successfully restructured into a new US$45.0m facility.