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I have a sneaky feeling more Nigeria deals are on the cards or at the very least being worked on especially with the recent reforms encouraging oil and gas investment in country...................................
Https://uk.movies.yahoo.com/movies/exclusive-exxon-steps-assets-sales-145150073.html
One thing I find fascinating about Savannah compared to other small cap players is that AK has built a strong network in the industry and also some of the executive team are also ex investment bankers in there past life at major banks, in addition to this we have access to capital unlike other players.
This makes us a prime candidate for deals and we would definitely be on all majors list for divestment of assets, in some cases it wouldn't surprise me if majors came to us asking to buy there assets rather than us going to them such is our position of strength in negotiating deals. We have made inroads with 3 majors already since we have started to deal make Exxon, Petronas and Eni who we wanted to purchase tunisia assets on in the past, i am sure we there are many more which we would have consulted.
This gives me great confidence that we will always be offered deals, the question than becomes whether the deal is right for us from an asset performance and financial metric and how the host governments are receptive of us, both can be overcome with some hard work and going for the right countries.
NicetoMichu - One would imagine that AK plan is to come back being an enlarged entity so it stops future suspensions and they can carry on deal making whilst trading. Now whether that comes in the form of SS or another remains to be seen. It would seem illogical to come to market and than ask for another suspension if the acquisition is large they would be better of continuing the current one.
Looks like Bracewell continue to be our Deal advisors for acquisitions, let's hope they have a few more juicy ones lined up for us.........
https://bracewell.com/news/bracewell-advises-savannah-energy-on-acquisition-of-49-percent-participating-interest-in-stubb-creek-field
Zengas - 100% agreed on the basis that Savannah can bring additional deals in this suspension window with or without south sudan I would be happy for the 2nd April date to be extended if they can secure another material acquisition alongside or instead of South Sudan acquisition. We did throw our hat in the ring for Assala assets ass per the Jan 2024 africa intelligence article so on that basis clearly our current position is not hindering additional deals.
In light of today's SPA happy to be suspended to bring incremental or bigger deals in this suspension window.....
A lot may disagree with this but this is just my opinion of course if south sudan is ready than happy to come back as soon as possible.
Very brief coverage from Cavendish this morning, please see below:
"Stubb Creek acquisition Savannah is buying out its partners from the Stubb Creek oil and gas field in Nigeria, raising its exposure to a strategically important asset for the company with strong oil production enhancement and gas development potential at an attractive price."
Standard Chartered and Citi also join Goldman in predicating a naira recovery this year.
https://www.legit.ng/business-economy/money/1584147-two-top-firms-bold-pediction-naira-dollar-exchange-rate/
Let's hope the news this morning is just the start of news flow from growth perspective, nice move to consolidate the Sinopec shareholding strengthens our accugas position giving us circa 5,000 bopd oil production but more importantly gives us material gas feedstock and with CPF facility hopefully completed soon it significantly enhances the accugas asset, allowing significant gas throughput.
I found this line interesting "Savannah remains committed to growing our core business in Nigeria through a combination of both value accretive acquisitions and organic projects."
I hope more Nigeria acquisitions are on the cards as I have always mentioned I prefer us to go for a material oil producing acquisition in Nigeria and let's hope that we do.
Here is to new beginnings and more wins for all Savannah shareholders.
Looks like operations at port sudan and transit has re-commenced from last Wednesday so previous oil liftings that were in waiting will be processed.
https://www.southsudanminingjournal.co/en/post/boost-for-oil-transit-as-maersk-cautiously-resume-operations-in-port-sudan/617
Https://www.offshore-energy.biz/perenco-boosts-its-portfolio-with-enis-oil-assets-in-congo/
https://www.eni.com/en-IT/media/press-release/2024/03/eni-sale-of-some-upstream-assets-in-congo-to-perenco-completed.html
It’s definitely an interesting conundrum for savannah but having persisted with this deal for so long one would think that Petronas and Savannah would have worked up scenarios if deemed consent is not received.
Perhaps the exit tax or consent fee as the article alludes too needs be the biggest and the sweetest to convince the SS government after all they are in an economic peril so if Petronas are really keen on exiting by all means possible than they could test this avenue to see what is the level that the SS government bite at. Let’s be honest they don’t really want to be operators they all want a big up front lump sum check
Great summary on challenges facing deal making in Africa this year and beyond
https://www.energyvoice.com/oilandgas/africa/545796/deals-in-africa-10-things-to-watch-in-2024/
Hoping a finance minister which has previous ministry of petroleum experience alongside the current petroleum minister have some sense and can convince Kiir to approve our deal but I wouldn’t hold my breath
another ss finance minister sacked and replaced by former minister of petroleum. the ss ministerial **** show continues…… remember the sacked minister is the one who talked about the caltech saga.
https://x.com/patrickheinisc1/status/1768937985276264899?s=46