The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Zengas - I for one would imagine a lot of it will depend on the balance of payment left on the deal some people have said that the economic interest date on the deal goes all the way back to Jan 2022. So I would imagine with the continued production we have had over the period that the amount left to pay would be on the lower end.
Personally I think everything hinges on approvals and I personally feel with every passing month the risk has been financial risk of this deal has been lowered more in our favour so would be shame to can it without another substantial acquisition / deal
I wonder if AK is still in SS pushing for the approvals clearly they seem to be the biggest workstream / stumbling block towards us completing, can we still come back to the market and issue an admission document without approvals who knows..........................
The pipeline leak was fixed........
https://www.southsudanminingjournal.co/en/post/bashayer-pipeline-company-resolves-khartoum-oil-pipeline-rapture/574
The Article seems to suggest lower throughput through the pipeline in February 79,000 and some liftings deferred from port sudan, seems to me the pipeline is still operational albeit lower volumes and red sea export issues making it difficult to export oil out.
The worst of Naira is definitely over so let’s see some appreciation filter through over the next few months
https://www.legit.ng/business-economy/money/1582783-respect-bank-predicts-exchange-rate-naira-dollar/
I firmly believe that transcorp power listing alongside the executive orders by Tobin have been timed to drive sentiment and investment in the energy sector and it will prove the catalyst for growth
I am extremely bullish on Nigeria power suppliers and associated gas suppliers. For context transcorp listed on Nigerian stock exchange this week and closed Friday at 2.635 trillion naira market cap or $1.65 billion usd circa. We supply gas to transafam power so great to see such strong opening on the listing for transcorp. Plenty of scale on accugas to come especially with CPF completion shortly.
With the recent directive by the president to promote oil and gas investments I see double digit growth in accugas for the foreseeable future and hence I maintain that accugas will be a $1bn dollar revenue generating business as standalone
https://nairametrics.com/2024/03/09/transcorp-power-gains-n835-billion-to-top-weekly-gainers/?amp=1
https://transcorpgroup.com/
Rocky all of this policy reform will help sure up the naira and help it appreciate as the dollar flow increases into country unlocking projects
https://www.vanguardngr.com/2024/03/why-tinubu-signed-executive-orders-on-oil-and-gas-aide/amp/
https://www.thisdaylive.com/index.php/2024/03/09/fg-tinubu-determined-to-reverse-underinvestment-in-oil-gas-sector
https://www.ripplesnigeria.com/nigeria-aims-big-for-gas-sector-with-575bn-investment-push/?amp
https://businessday.ng/energy/article/fg-eyes-iocs-investment-to-boost-energy-sector-growth/?amp=1
https://punchng.com/fg-inaugurates-council-to-attract-575bn-gas-investments/?amp
I didn't realise that Shell was that desperate to sale it's Nigerian asset that effectively it's financing it's exit buy providing the full loan. That's unheard of just goes to show Majors are willing to provide Significant finance if buyers are unable to raise funds for acquisitions through other sources
"The company said it would provide a term loan of $1.2bn to the buyers. It will also provide another $1.3bn to fund SPDC’s spending on gas projects."
https://www.energyvoice.com/oilandgas/africa/548104/shells-nigeria-exit-faces-challenges-but-suggests-a-way-forward/
Zengas - Thanks for your interesting cost basis analysis for Niger Agadem development. I am wondering if they want to do some of the work programme solo to prove up the blocks more than perhaps bringing in a partner further down the line would provide a better deal. As supposed to now although if are getting a good partnership now which means it allows us to be more aggressive in Niger quickly than it wouldn't be a bad option as well.
I can't remember but have savannah ever mentioned bringing in a partner in the more recent years ?
On Niger, I would want Savannah to purchase a drilling rig and any associated equipment and store in Niger, as supposed to hiring rigs, plenty of drilling and exploration to be done in Niger purchasing a rig and having it fully available at all times for drilling in Niger would be so beneficial in getting an expediated work programme in Niger in place and alleviate and time lag, Plus over time the cost of a drill rig would easily pay back overtime and it allows much more operational flexibility.
Moho30 - I reckon I can do a better PR Job than whoever they are paying, and probably for 1/10 of the price. Perhaps I should be on Savannah payroll afterall the time and effort in research I make.................................. has to be rewarded.................. ;)
First Tweet in months from Savannah
https://x.com/Savannah_Energy/status/1766040104798155177?s=20
Really positive article on Niger from SP. Oil is already flowing through pipeline for storage tanks in Benin ready for first cargo lift end of april or early may
Mentions Savannah Energy
Savannah Energy, the only Western company operating in Niger, hopes to bring a 1,500 b/d oil project onstream in coming months, before ramping up to 5,000 b/d.
https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/030724-niger-on-verge-of-first-oil-exports-with-110000-bd-benin-pipeline-completed-sources
Morning all, another week down all quiet on the Savannah front.
In other news looks like we could potentially explore renewables opportunity in Tunisia
https://www.linkedin.com/posts/aidabenghorbal_uk-tunisia-sustainable-energy-cooperation-activity-7171731439095418881-C9H0?utm_source=share&utm_medium=member_ios
Thanks Zengas - It would be interesting to see how Gran Tiera conversation proceed and the substantial pivot from nationalising 12 months ago to now trying to bring in a partner.
Perhaps this was the deby plan all along nationalise the asset to please public for the elections which are in May once he secures the election than perhaps pivot away from nationalisation
Good to see Nigeria continuing to execute reform to increase sentiment and investments in oil and gas sector through executive orders, here is hoping to another asset preferably an oil asset even a small one with small production numbers and development and exploration potential would be nice in the range of 5,000 - 10,000 bopd.
https://saharareporters.com/2024/03/06/tinubu-signs-three-executive-orders-reform-nigerias-oil-and-gas-sector