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Interesting the South Sudan Petroleum minister met with Revitalized Transitional National Assembly's subcommittee on petroleum the day before Petronas handed in the notice, let's hope the wheels are turning in a positive direction for Savannah.

They have endlessly talked about transparency in the sector but actions will mean more than words now as clearly as far as south sudan oil industry goes now no one is buying into empty PR words.

https://x.com/puot_kang/status/1820834980420886785

If anything Petronas from their perspective have played a blinder, the notice already states that they don’t need approval under the provisions to exit and transfer to partners if nilepet choose not to pre-empt.

So the clear decision to make here is who wants to take on the Petronas share of obligations and liabilities under EPSA and JOA. From a Nilepet perspective pre-emption doesn’t help as it is barely stay afloat as it is plus with production significantly reduced and also taking on future development cost and liabilities will be a big ask especially when the transitional council had said last year that Nilepet was not in any shape or form to take over Petronas assets so that position clearly would have not changed.

Don’t believe the partners reallly want the Petronas share of obligations and liabilities on their books either.

If you are the other partners your ideal scenario is a new partner I.e savannah cause the thought of Nilepet pre-empting would also scare them and in that case they would highly likely not put more towards development and the South Sudan oil sector would collapse till current wells become uneconomical.

The only reason Nilepet would pre-empt is for political spin to make it seem like they got the assets but at what costs and do they really want to have a short term political win when financially there is nothing to gain.

Judging by the fact that Savannah are talking to other partners in the PSC as per their rns it shows that the other partners also don't want to take on the additional share.

1) Nilepet pre-empts and happy days for all but they don't get a lump sum fee or something alike as they had hoped and they become overburdened if they are not already.

2) partners are forcefully take the additional share after 60 days but likely just run down the fields and not invest more to maintain and grow production.

I reckon the other partners could play a role in forcing the hand of the south sudanese government if they choose not to pre-empt their rights.

The South Sudanese government and Nilepet have a clear choice to make here as pre-emption is also risky for them they loss whatever they were getting from petronas for this deal as part of the savannah deal plus they have to pick up future operational costs and development costs and any associated liabilities something they are in no position to do at the moment.

Seperately i don't think all the other partners are keen on automatic increase their stake should Nilepet not pre-empt as they are than tied to additional liabilities of production development and growth, they are probably happy with there current holding and if anything they are probably looking for an exit too.......

Next few weeks will be interesting one of the comments on the twitter post is DPOC held an emergency meeting yesterday so expect this to be fast moving both ways now considering fixed timeline is now insight

Dear Sirs

SUBJECT: PETRONAS CARIGALI NILE LTD ("PCNL") NOTICE OF WITHDRAWAL FOR BLOCKS 3 AND

7

We refer to: (i) the Joint Operating Agreement dated 1 October 2012 ('JOA") among PCNL, CNPC

International (Dar) Ltd ("CIDL"), SINOPEC International Petroleum Exploration and Production

Corporation :"SIPC*). Nile Petroleum Corporation (Nilepet) Ltd ('NILEPET"), South Sudan Tri-Ocean

('SSTO") and DAR Petroleum Operating Co. Ltd ("DPOC") in respect of Blocks 367 ("Blocks"); and (il) the

Exploration and Production Sharing Agreement for the Blocks, as amended by the Transition Agreement

dated 13 January 2012 ('New EPSA").

In accordance with Article 14.1 of the JOA and Article 22.3(a) of the New EPSA, and with a complete

reservation of all its rights, PCNL hereby notifies the other Parties to the JOA and other Foreign Parties

to the New EPSA of PCNL's decision to withdraw from the JOA and the new EPSA through a transfer of

PCNL's Participating Interest in the New EPSA for no additional consideration.

PCNL sincerely appreciates the long working relationship it has enjoyed with all the respected partners

and looks forward to working with them to facilitate this process of withdrawal to avoid any impact on

DPOC's operations and maximise value to all the partners and the Government of the Republic of Sudan.

To this end, PCNL respectfully requests that:

Internal Use- Authorired for External distribution

NILEPET confirm whether it wishes to acquire PCNL's Participating Interest under the New

EPSA pursuant to its statutory pre-emption right under Section 23 of the Petroleum Act 2012;

or

CIDL SIPC and SSTO, as the remaining Foreign Parties under the New EPSA, acquire PCNL's

Participating Interest pro rata pursuant to Article 22.3(a) of the New EPSA.

Unless NILEPET exercises its pre-emption right within 60 days from the receipt of this notice, PCNL's

Participating Interest shall stand transferred, upon the expiry of 60 days from the date of this notice, pro

rata to CIDL, SIPC and SSTO pursuant to the pre-existing consent from the Government recorded in

Article 22.3(a) of the New EPSA, and PCNL shall no longer be part of the Contractor under the New EPSA.

With that, we would like to take this opportunity to thank each and every partner of Block 3 and 7 for the

cooperation given to PCNL through all the years we had been in partnership in the Republic of South Sudan. We wish you and DPOC the best of successes in the future.

Nilepet has to exercise it's right within 60 days to takeover the Petronas assets from the date of notice which was 7th August 2024 so plus 60 days mean 6 October 2024 is the deadline to pre-empt it's rights.

If Nilepet chooses not to pre-empt it's rights than basically all the other existing partners get increased percentage pro-rated on the new EPSA, so basically CNPC, Sinopec and tri-ocean will pro-rata increase their share of Petronas share.

https://x.com/kuany_machar

Savannah Energy*

South Sudan Acquisition Alternative Transaction

Savannah has announced that the original proposed transaction to acquire the entire oil and

gas business of Petronas in South Sudan is not proceeding, although Savannah remains in

active discussions about an alternative potential transaction to acquire the same Petronas

assets. The alternative transaction would constitute a reverse takeover and so Savannah

remains suspended from trading on AIM. A further update is expected to be made in early

September; however, the Company is still working towards the previously guided readmission

timeframe of Q3 or early Q4 2024.

Background.

in three Joint Operating Companies (JOC) which operate Block 3/7 (40%), Block 1/2/4 (30%) and

Block 5A (67.9%). The portfolio comprises 64 producing oil fields, which in 2023 produced

149kboepd (gross). Major partners in the JOCs include: CNPC, Sinopec, ONGC and Nilepet, the

national oil company of South Sudan.

A deal still to be done. Petronas has separately announced the withdrawal of its operations in the

Republic of South Sudan. Savannah remains in active discussions with the same relevant parties

about an alternative potential transaction in relation to these Petronas assets. Savannah will provide

a further update in early September.

Several upcoming catalysts. In Nigeria, the gas compression project at the Uquo CPF is on track to

be completed in H2 2024, enabling Savannah, through its Accugas midstream subsidiary, to increase

gas production volumes in the years ahead. Post year-end, Savannah announced plans to increase

its effective economic interest in the Stubb Creek oil and gas field from 51% to 100%. The acquisition

is due to complete in H2 2024. Following completion, Savannah will implement a de-bottlenecking

programme, which is expected to increase production by 135% to 4.7kboepd within 12 months.

In Niger, Savannah intends to commence a flow-testing programme on the key R3 area fields in Q4

2024, with the first commercial oil production anticipated during H2 2025/H1 2026. Significant

additional longer-term growth potential exists in Niger through the 146 exploration targets identified

within Savannah s licence.

In the Renewables Energy Division, Savannah expects to have up to 1GW+ of renewable energy

projects in motion by end-2024 and up to 2GW+ by end-2026.

Savannah expects the arbitral proceedings against the Government of the Republic of Chad to be

concluded in H2 2025. In total, the claims are valued in excess of US$1bn.

Wiselyinactive - first of all welcome to the board it’s always nice to get a varied debate amongst all so much appreciated.

You seem to have taken more confidence from the news and still feel there is a a high probability of deal completing…….. I not sure we will ever get to see what the terms or the sticking point are in a no deal scenario but let’s all keep the faith and wish that Andrew has something sweet for all of us to digest soon.

Longshorttrade - Smaller deals or larger deals I think the consensus for all is that as long as other material hydrocarbon deals are being pursued and also for them to be completed in this suspension window I think that’s all anyone else could ask for some may disagree on this but i would happily continue to be suspended if it means he can come to the market with a set of smaller deals which in totality are material or a single transaction which is in a favourable jurisdiction like Nigeria or Angola.

I would like to think as much as AK has goes for big deals or deals in difficult jurisdictions I would like to think that he has also worked up something else so this suspension window is not lost without an acquisition, surely like any deal maker he would have had plenty of time to hedge his bets and progress other things it remains to be seen. I have always said and continue to maintain if it takes further extensions so be it but we all deserve a deal big of a few small ones.

Petronas version seems interesting they have no reference to Savannah Energy and they also say the amicable transition . The choice of wording makes it seem like that today's news wouldn't have come as a surprise to the south sudanese government plus they also mention in accordance with "applicable laws, petroleum agreements", well surely this would have been in breach of those unless the game plan has already been agreed with the south sudanese government agreements.

The idea that the south sudan government would have received the news as a surprise today is not plausible to me especially with the choice of wording which petronas have used which makes me feel that this was agreed in tandem with the government that they will go down this route prior to announcement.

The question remains what the south sudan government does now clearly they would not want to be operators but also see this as an opportunity as follows:

1) Become operator and consolidate petronas assets under nilepet (Highly risky and probably wouldn't want to)

2) Ask CNPC and ONGC to take a greater share (Don't believe they would want any more exposure than what they have already and they are probably looking to exit as well as operating in south sudan now is probably immaterial to both there portfolios)

3) Split petronas share of assets and take a greater share of percentage and take an up front payment for the percentage that they are willing to give away.

4) Re-sale the entire Petronas share to the highest bidder and a lump sum up front payment, together with n adjusted profit share percentage on production

"amicable transition while being mindful of the rights of its employees, in accordance with applicable laws, petroleum agreements"

Kuala Lumpur, 7 August 2024 – PETRONAS' subsidiary, PETRONAS Carigali Nile Limited (PCNL) today announced the withdrawal of its operations in the Republic of South Sudan (RSS).

The decision was made following a two-year period of divestment initiatives in alignment with PETRONAS’ long-term investment strategy amid the changing industry environment and accelerated energy transition.

PCNL will continue to work with all relevant stakeholders to ensure an amicable transition while being mindful of the rights of its employees, in accordance with applicable laws, petroleum agreements as well as PETRONAS’ policy and procedures.

https://www.petronas.com/media/media-releases/petronas-withdraws-republic-south-sudan

Scotpak - I am partial agreement with this I think not completing could also be viewed positively as the SS deal even if it completes will have some risk premium priced in. Although having said that I would still prefer to come back with to the market with a deal in Nigeria or Angola preferably.

I genuinely feel that if the company still wants to continue with deal making in Africa than this is the window that they need to maximise, otherwise there is no point of coming back and to be suspended for another deal, if that's there intention than you might as well can the whole deal making in africa straegy after 2 difficult deals.

I reckon that this news is designed to put the south sudanese government into action for better or worse. As petronas unilaterly leaving will signal a bad signal to investment in the oil and gas sector. So the south sudanese government will have do something that will signal that it's still open for investment.

Interstingly "Such alternative potential transaction, should it be concluded, (or a reversion to the original transaction)"

They also refer to reversion to the original transaction as possibility so i reckon this is Petronas saying this is the deal with Savannah take it or leave it otherwise we are on the next flight out and you deal with the fall out of us walking away

Not sure what this means to be honest are we still after Petronas assets in South Sudan or is it referring to other assets any one else know………

Petronas are terminating their production and exploration agreements so are we going for them directly through the government ?

As expected Petronas South Sudan terminated still suspended due to another acquisition with Petronas.

Great to see our Nigeria MD continuing to spread the savannah name and continue to participate in forums in the nigerian oil and gas space

https://x.com/afenergyseries/status/1820753365103452614

I know our preference has been to have an oil acquisition for quite awhile but, I wouldn't mind another gas asset if it has similar scale and potential of accugas asset. Having the gas minister and the support of CEO of Niger Delta Power Holding Company is a bonus and hopefully this is the start of something material in terms of acquisition.

We did set up 3 sets of power holding companies recently so hopefully something material is being worked on...........

Highlighting Savannah's strong example and commenting on our social impact projects, the Honourable Minister of Power, Chief Adebayo Adelabu said: "I am calling on other potential investors to emulate what Savannah Energy has done. I want to also thank you for the jobs you have created directly and indirectly, the CSR projects executed and for the safeguarding of the environment. We don’t want you to relent. We want you to do more to continue your expansion plans, so that you can supply more gas.”

L-R: Etido Inyang, Chairman, Ibom Power Company; Adedayo Olowoniyi, Chief Technical Assistant to the Minister of Power; Matthew Edevbie,

Chief Executive Officer, Income Electrix Limited; Chiedu Ugbo, Managing Director/Chief Executive Officer, Niger Delta Power Holding Company

Limited; The Honourable Minister of Power, Adebayo Adelabu; and Pade Durotoye, Managing Director, Savannah, Nigeria.

https://x.com/Savannah_Energy/status/1820469493304275044

Accugas Limited, Savannah’s midstream subsidiary in Nigeria, was pleased to host Nigeria’s Honourable Minister of Power, Chief Adebayo Adelabu, on a recent visit to our Uquo Central Processing Facility (“CPF”) in Akwa Ibom State.

The Honourable Minister of Power praised Savannah and our initiatives during his visit to the Uquo CPF: “We are calling on other companies to emulate the activities of Accugas so that the unreliable supply of gas that we have will be a thing of the past. They have been tried, they have been tested and they are trusted. One other thing I also noted is their investment in a new gas compressor to boost pressure for gas supplies. It is a significant investment. We really appreciate it, and we will continue to be partners."

L-R: Matthew Edevbie, Chief Executive Officer, Income Electrix Limited; Chiedu Ugbo, Managing Director/Chief Executive Officer, Niger Delta Power Holding Company Limited; The Honourable Minister of Power, Adebayo Adelabu; and Pade Durotoye, Managing Director, Savannah, Nigeria.

https://x.com/Savannah_Energy/status/1820466797532877208

I was mulling this over a little an in the grand schem of things further extensions into 2024 may not be the end of the world if they can’t get the South Sudan government approval. As long as they are able to complete

1) CPF completion with additional gas contracts completed this year.

2) Accugas debt fully re-financed

3) Niger test well completed

4) complete sipec acquisition

If they can at least achieved the above 4 things than it’s a good place to start and should place us in good stead with or without another hydrocarbon deal.

Caution - thanks for your summary as you mentioned we already knew that it would go into September anyway as they previously communicated although I guess with the Fridays update a lot on here including myself had hoped that they were at a stage where they could provide additional details but clearly they are navigating a fine line here.

Streets - your below comment stuck with me I hope the company stay true to this as I believe having been suspended for such a long time the company will have to do a lot of market information prior to re-list whether there is a deal or not, I hope that they are even able to get some of our house brokers to do a detailed deep dive on the company and its growth prior to re-list and would definitely like an investor presentation prior to re-list in any case that’s the least we as shareholders deserve. The last thing I would want is for the company to stay quiet and just come back to the market without adequately keeping the market informed of developments during the suspended period prior to re-admission with or without a deal.

“shared in AGM meeting that detailed analysis of all new aspects of the business post suspension date would be delivered to all investors prior to re-listing”

Https://x.com/UKinTunisia/status/1818728458475757991