Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Scotpak & Tier - Correct, my interpretation is it all depends on how much Naira the company held pre de-valuation that really affects the FX loss, so if we are able to convert naira to usd quickly than it mitigates the risk. Plus one would assume now that naira has de-valued and is in line with the parallel market it can only improve liquidity thus claw back some of the FX loss that occured through the de-valuation process.
The Company may hold onto some naira and the FX book loss if they feel they can claw some of it back through appreciation over the next few months and possibly year.............
As far as acquisitions go, I fully believe that AK would and will be pushing for an oil acquisition as at the moment we are heavily weighted on gas. I don't think gas is out of the question but he probably feels the gas numbers will grow with time with the accugas asset so the focus is definitely on an oil acquisition.
Even a small acquisition of 5,000 - 10,000 bopd will do wonders in changing our production mix an put the company on a new trajectory. I am sure there must be other small deals to be made for instance we were after ENI Tunisia asset previously which i recall was circa 5,000 bopd of oil.
Moho - I think it's safe to say we all want it back trading however I believe the company is looking to maximise this prolonged suspension window to bring a deal to market as acquisitions is a major part of it's strategy, I am of the opinion that's the intention of the company as they will find it difficult to seek future suspensions if they return without deal and than ask for a another suspension further down the line.
It's perhaps a lot more easier to keep on extending the current suspension window to complete a deal than to return and suspend again.
Zengas
We don't know the level of assurance and evidence being given to Aim to warrant extensions and how these assurance and evidence being provided fit with fixed goal posts as supposed to moving goal posts. But 100% agree seems like savannah want to return to market with approvals alongside adm doc and not just the adm doc. This probably aligns with what Rocky had been feeding us from IR over the past year he did say AK preference was also to come to the market with ADM document and approval.
Savannah may have taken this decision as the deal has progressed based on what they feel gives them the assurance they need that they will not be played with and perhaps they have than come to a decision assessing all factors that it was prudent for this particular deal to come to the market with approvals.
I wouldn't blame them considering how chad deal went, and also recent evidence of Maurel Prom / assala deal falling through both instances government intervention occurring and assets being state controlled.
Zengas & StreetsofGold - I refer to your posts on Friday whilst I agree that the South Sudan government probably haven't officially pre-empted the asset so could be positive sign otherwise Savannah would have to report back to market. Referring back to the rns on 1st Feb saying seeking in country approvals, does that mean that have ironed out all the commercials with the government ? surely approvals only come after some sort of commercial agreements in place otherwise in would be a slight jump.
Do I feel like we will get an admission document in this suspension window in all honesty no, if we are likely to than my guess is probably some point in Q2 2024 which may require an additional extension, as ever this is just my opinion from very little that's available to us in the public realms.
As for having backed up extensions of completing the south sudan deal I guess there comes a point where extensions may become meaningless if there isn't progress but we will never know what progress looks like as the company provides limited info.
When the AI article rereferred to a "few"weeks in terms of closing and the article was from 30th Jan 2024. In my mind I view the term "few" as 4-6 weeks so the date being roughly 15th March 2024 which is the date I mentioned yesterday so if we haven't had anything by than it would be safe to say we would not hit 2nd April and may need a further extension. Again these are just my own interpretations
With every extension in my mind I always think if we don’t get anything with 2 weeks to go till the extension deadline that we are at the same place so for this extension in my mind I have put 15th March as the date if we haven’t made any progress or received news from the company than we are in the same place probably looking at a further extension.
Sources with knowledge of the matter said GOC -- which is believed to be short on cash -- had paid a deposit but had not yet secured financing. The SPA is not contingent on financing, but closing is. The NOC, which had been in discussions with trading houses, claims it has made progress with various parties, the sources said.
"They have agreed a few months to raise the financing," said one source. "Yes, they can borrow money, but unlikely the total amount needed."
Carlyle declined to comment further on the details of the deal or the financing. GOC did not respond to requests for comment.
Https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/021624-gabon-celebrates-13-bil-assala-oil-deal-but-questions-linger-over-financing
https://www.energyvoice.com/oilandgas/africa/ep-africa/547974/gabon-commits-to-assala-deal-maurel-calls-it-quits/
Looks like savannah may not be involved after all although there isn't any clarity on who or how it's being funded.
Morning folks, Another week down.......................................................... Silence on the savannnah front.........
2 new jobs posted yesterday
https://careers.savannah-energy.com/job/Eket-Senior-Mechanic-AK/967827255/
https://careers.savannah-energy.com/job/Calabar-Field-Operator-CR/969237355/
On a separate note Jadestone is suspended this morning pending a RTO deal in Australia, just goes to show there are deals to be made outside of Africa as well if Savannah ever wanted to pivot away from a deal outside of Africa..........
https://www.lse.co.uk/rns/JSE/response-to-media-speculation-trading-suspension-4qylrkr01mycypj.html
If the borders between Niger and Benin re-open in the next few weeks as the article below illudes too, I would want Savannah to be quick to start a work programme in Niger for Q2 2024.
https://cadreco.media/article/848/reouverture-prochaine-des-frontieres-beninniger-lideal-pour-leconomie-nationale
In response to the coup d'état that occurred in Niger on July 26, 2023, Benin closed its border with its neighbor, in accordance with sanctions measures taken by the Economic Community of West African States (ECOWAS). Niger also subsequently closed its border with Benin.
But the disadvantages of the application of ECOWAS sanctions against Niger have not spared Benin. Serious economic consequences have been recorded. Port revenues have fallen considerably. Beninese transport traders have seen their income-generating activities suspended. There was gnashing of teeth among the truckers. The president of the union of transporters and importers of Benin, Rabiou Garba, deplored the fact that more than 500 trucks were blocked in a park with a capacity of 200 trucks in Malanville, a Beninese town on the border with Niger. Which makes this park inaccessible to other trucks arriving there. “So backordered goods. Billions of CFA francs are at stake,” he complained.
Five months after the ECOWAS sanctions applied against Niger, Benin lifted the suspension of imports of goods transiting to Niger. This news came a few days after the President of the Republic expressed his desire to “rapidly restore relations” between the two neighboring countries. But Nigerien leaders remained adamant for a return to better feelings between Benin and their country.
However, faced with the enormous repercussions of this situation on the Beninese economy, the President of the Republic of Benin, Patrice Talon still plans to restore the good atmosphere, particularly economic, which linked the two countries. Thus, during the press conference on Thursday, February 8, Patrice Talon gave assurances regarding the very soon opening of the borders between Benin and Niger. “If all goes well, by next week or in the weeks to come, the borders between the two states will be open for the happiness of nationals of the two countries,” he said. This measure would be ideal for the national economy, by revitalizing the revenues of the Autonomous Port of Cotonou and promoting the resumption of suspended activities. The people of Niger will also be able to breathe a sigh of relief. Because the disadvantages are also visible in this Sahelian country.
UK government announcement - https://www.gov.uk/government/news/uk-signs-landmark-economic-partnership-with-nigeria
Full Article - I hope it's a Vitol / Savannah Due even though the article does not mention Savannah.................... Surely Vitol would like a credible partner to operate these assets are they really willing to risk providing a loan of such magnitude without a credible operator also working alongside the Gabonese government remains to be seen but either way I believe the deadline is end of Feb.
Vitol wants debt paid before helping GOC buy Carlyle's assets
Published on 12.02.2024 at 05:40 GMT
Geneva-based trader Vitol remains the Gabonese government's preferred choice for a loan of several hundred million dollars needed for the Gabon Oil Co (GOC) to buy Carlyle's assets, which have been operated since 2017 by Assala Energy.
Vitol will however only lend the money if the Société Gabonaise de Raffinage (Sogara) pays off its debt of several million dollars for past deliveries of petroleum products. Gabon's oil ministry, headed by Marcel Abéké, has so far refused to link the two cases.
Carlyle is putting pressure on the GOC to find the funding as quickly as possible. Oil company Maurel & Prom signed a purchase agreement with Carlyle in August 2023, a few days before Brice Clotaire Oligui Nguema's coup. He has since decided to pre-empt these assets through the state company, which is active via direct stakes in all of Carlyle's blocks. The deal represents almost 45,000 bpd of production.
Looks like Vitol is ready to provide a conditional loan although looks like Savannah isn’t mentioned this time so may be they are happy for the Gabon oil company to be operators without a third party
https://www.africaintelligence.com/central-africa/2024/02/12/vitol-wants-debt-paid-before-helping-goc-buy-carlyle-s-assets,110158233-bre