Member Info for ZENGAS

You're reading me right Buffy re the assets. As for the CEO, i'll re-examine that after the next update and guidance for Niger particularly and 2019 results. If the rate of bonus and pay continues against a shabby share price or lack of material progress, something will have to give.

Don't honestly know the answer to your last question. Maybe SAVP as an entrant presented a better long term case for Niger to choose them.

No I don’t think that at all or that is implied. To me it shows the interest by others and the prospectively of the blocks and definitely demonstrated by 5 out of 5 drilling successes.

On a separate issue I see a further pipeline planned for export of oil products to the border with Burkina Faso from the Zinder refinery.

continued ... circa late 2016 AEI

"The only company active in Niger apart from CNPC and Sonatrach, Savannah Petroleum is winning sweeteners in its contracts with government.
The general manager of Savannah Petroleum, Andrew Knott, will be flying to Niamey early this month to join with oil minister Foumakoye Gado in formally ratifying two decrees modifying the firm’s production sharing contracts. The decrees were adopted by Niger’s cabinet in early September.
The amendments reduced the work commitments of the British junior, which operates the R1, R2, R3 and R4 licenses in the Agadem basin.
Elsewhere, Savanah is expected to win from the adoption of a new oil code the authorities are drafting by the end of this year at the behest of the World Bank.
The new legislation will allow it to obtain a two-year extension of its PSC instead of the current one year."
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So $70m for all 4 blocks.
Got some of this reduced i think in October 2016 with the aid of the World Bank (and investor in Savp).
Savp then announced a 1 year extension to R1/R2 for the first 4 year exploration period in May 2018. "The first phase of Savannah's R1/R2 EEA will now expire on 5 August 2019. The Second phase of the EEA is therefore expected to expire on 5 August 2021, with the third phase now expected to expire on 5 August 2023. All other terms of the PSC remain unchanged."
When i spoke to IR about this in the H2 last year, i was told they expected a to get an extension again (in line with the AEI article re world bank legislation - so no word yet on a possible 2nd extension.

Note from above re Tullow Oils Tim O'Hanlon trying to win those Agadem permits. Interesting now that newly formed Boru Energy late 2019 backed by $1b from Carlyle Group are looking for assets in the region - headed up by former Tullow chief Aidan Heavey and a brother in law of Tim O'Hanlon who is now Tullows VP of exploration. Who knows who might be trying to partner. Last week DIG Oil reported as looking for any acerage hive off.

NIGER Africa Energy Intelligence dated 28/07/2015
Niamey is allowing only a handful of players to rule over the oil industry, closing the door to richer and more experienced applicants.
As Africa Energy Intelligence anticipated in June (AEI 747), the British junior Savannah Petroleum had no trouble in getting the government to agree on July 16 to award it the highly coveted R3/R4 license in the southern part of the Agadem block.
Founded and currently run by British financier Andrew Knott, the firm was initially set up with the aim of winning permits in Niger on which large amounts of data (3D seismic and drilling) had been amassed by CNPC.
To pay the signing bonuses and initial exploration campaigns - $34 million for blocks in 2014 and $36 million for R3/R4 now - Knott’s company issued new shares on the London Stock Exchange. He has been assisted by Jessica Hostage, a former executive of Canaccord Genuity, who deals with investors, while Savannah’s exploration side is headed by Phil Magor (who previously worked for Maersk Oil). But when it comes to drilling wells Savannah will need to find a partner or raise yet more cash on the market.
Firms left in the cold
Several companies with deep pockets or headed by executives with impressive backgrounds have knocked to no avail on the door of oil minister. Among those frozen out has been Tullow Oil whose Africa chief, Tim O’Hanlon, travelled to Niamey on many occasions in 2013 to talk to the government about CNPC’s relinquished acreage on Agadem, and Bilma and Tenere zones (AEI 708). The lack of interest displayed by Niger finally led Tullow to give up.

31-5-19
In March 2019 we formally submitted our Field Development Plan for the EPS to the Ministry for approval and, at the time of writing, anticipate delivering first oil from our discoveries in 2019, an industry-leading time from discovery to development." and
Our focus in Niger in 2019 will be on testing the Amdigh-1 discovery, delivering first oil from our R3 East EPS, and commencing a further exploration programme in the second half of the year, potentially with a partner." AK
"We are focused on delivering first oil for Savannah in Niger in 2019" - S Jenkins.

It was the susbequent broker note after the 7E concluison that stated that exploration drilling would commence in H2 2020 - so where did theyt get that info from ? Going on past delays, expecting a partner for the past 5 years - is it any wonder PIs are getting to the end of their tether with AKs pointless interviews. Theres eff all point in attracting new investors with the same old story if he can't satisfy the original investors and start to deliver on what is supposed to be a world class, low risk asset in Niger. This is something the remuneration croneys need to take on board and to be frank AK and Jenkins need put on notice about their performance over Niger. Simply not good enough and time AK and Jenkins took time out to read their past RNSs that they issued and how they can now be blamed for all investor expectations. Bonuses are ridiculous. Again actions speak louder than words. Are we to expect continually shifting timescales and that's the point going on past performance !

14-5-2015
"The coming months will be focused on continuing to evaluate and advance R1/R2. Operationally, we expect to commence seismic acquisition and drilling, while on the corporate side we expect to welcome a partner to the asset and to Niger. " S Jenkins
"After being awarded the permit on July 4 2014, we put in place a clear strategy focused around finding as much oil as possible over the course of the permit's eight year life,
While debt and equity markets remain a potential source of future funding, I believe that the next phase of capital to finance the Company's planned seismic and drilling operations on R1/R2 is likely to come from the introduction of an industrial partner". AK
26-5-16
14 drill ready exploration prospects on R1/R2 "We expect that drilling activity will commence in 1H17, and will be in the form of a significant campaign targeting 10+ exploration targets on a back-to-back basis. With the commencement of this activity we are clearly anticipating a step change in the value of our company" AK
16-11-16
Exploration drilling remains on track to commence in 1H17. Savannah has continued to progress its plans to commence drilling activity on its Niger permit areas in mid H1 2017
11-4-17 Update on Drilling Campaign
The Company continues to expect drilling operations to commence during the first half of this year
20-9-17
Signature of a rig and other ancillary drilling service contracts with Great Wall Drilling Company Niger SARL ("GWDC") for Rig GWDC 215, with a three firm well campaign confirmed and including options for a further six wells
23-3-18
three well campaign confirmed and options included for a further six wells which can be exercised individually at Savannah's discretion;
"Looking ahead, 2018 will be a key year for Savannah. In the near-term, the commencement of our high-impact drilling campaign in Niger is something we are very optimistic about. The completion of the Seven Energy transaction and the integration of the assets into our portfolio is expected to transform the company into a fully funded business that is capable of generating significant cash flow which can be reinvested in high return opportunities such as our operations in Niger." - S Jenkins.
"We look forward to shareholders quickly benefitting from our increased scale as we expect to pay a maiden dividend of US$12.5 million from FY 2018 (i.e. expected to be payable in 2019)."- S Jenkins.
3-4-18 Drilling campaign started

On the SAVP website.
Investors.
Financial Reports.
Click each year and you'll find the details in each years annual report (not the interims).
Under directors renumeration review (itemised and on page 49 for 2018 - directors renumeration).

I've always had a feeling they might keep the cash and why not if you want to bolster the bank balance. I won't mid this so much if they get an announcement out on drilling plans for Niger whether they have a partner or not. Even they must start to realise how frustrated investors must feel about the lack of progress in Niger.

I posted this on the other board AD N V F re a qestion there - "Thanks PMF I take you're point, but as far back as 2014/15 they said they were after a major transaction. Maybe he has stuck to a plan of building the company from a larger base profile and spreading the risk.

At £200m m/cap, substantial production/reserves/cashflow/low risk exploration etc, one could have thought he would now be in the best position to grow the company from here. My faith remains, but no doubt my patience is tested. '

CEO Pay/bonuses
y/e 2014 paid $352k
y/e 2015 paid $671k
y/e 2016 paid $886k (of which $278k being his bonus)
Y/e 2017 paid $1.814m ($1.248m being the bonus)
y/e 2018 paid $2.1m ($1.4m bonus).
y/e 2019 to be announced
In 5 years (2014-18) including pension contributions he's earned $5.8m and if 2019 comes in similar to the previous 2 years he'll have gotten circa $8m in 6 years while the share price has been decimated. Give him another 3 years and at the contuning rate of pay and bonus's he'll have done alright with $14m+, never mind how your big shareholding is doing.

Unless he starts to get the share price up, deliver on promises and explain the dividend ambiguity then this progressive enrichment has to be nipped entirely in the bud and linked only to share price performance and every shareholder should make their feelings known about this to IR/JL/Remuneration committee and AK himself. It simply isn't good enough and has to be challenged. Going on 7 years and only 5 wells drilled in Niger - shameful.

AK was paid $2.1m for yr/e 2018 in salary and bonuses.
Almost $1.4m of that was his performance related bonus.
The CFO was paid $787k.

AK: "Our focus in Niger in 2019 will be on testing the Amdigh-1 discovery, delivering first oil from our R3 East EPS, and commencing a further exploration programme in the second half of the year, potentially with a partner. We expect this process to be one that adds significant value for all of our stakeholders".

Lets hope any bonuses under consideration if any for 2019 are suspended or cancelled and that the remuneration committee wake up to the fact that nothing has been delivered at any point since listing in terms of any growth for shareholders. Some of those dozy old compliant codgers should consider this fact when they're patting each other on the back about jobs supposedly well done and see that the company actions have repeatedly sent the share price south with every passing year.

Meanwhile let's see if the $5m short term loan is repaid in cash or by shares.

This was part of my post on 4th Dec 19 @ 11.23.
"Andrew if you read this, stay away to EFF from multiple interviews that deliver sweet FA and get to EFF on with what your supposed to be doing and deliver shareholder value - same goes for Jenkins too ! The Niger game plan has been deviataed from much too often. You get paid enough so now deliver ! Actions speak louder than words as does the share price."
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Shortly after that post he did at least 2 more interviews, again outlining his intentions on Niger and at least one new customer to be announced before christmas - and yet here we are again mid January of a new year/decade and nothing concrete released to the market and now 2 full months since the 7E transaction completion.

In the name of whatever god you worship or none, get a bloody move on with Niger ! That is what you touted to investors this past 7 years as the investment case that would bring significant returns. What is the effin hold up ? Nothing short of disgraceful.
There's no point calling Niger a flagship asset if you continually hang about. 5 wells that took only 3-4 weeks a piece to drill is ridiculously slow and not a test completed despite all the claims of 80%+ success rate for the most of the Sokor Alternances play, you would think you would be all out to emulate the 1 billion+ reserve of the chinese success.
Savp is approaching it's 7th anniversary of listing this August.
Knott has been paid not only a top whack salary but significant bonuses too. Jenkins the chairman needs to dig deeper or stop being a sidekick or go.
Listed at 56p, placings at 38p, 38p, 35p and 28p over the last 6 years accompanied with major drilling plans and partner talk for Niger - yet only 5 wells drilled. Most of those RNSs about drlling plans/timescales never materialised despite tens of millions $$ raised that was to go towards drilling. No wonder the share price is circa 20p as investor confidence is eroded.
Pomised a $12.5m dividend and on that at least, significant PI investors could have earned a decent income and stuck with the company while it grew - it too has the goalposts moved whether they pay it or not - make your effin minds up !
Almost 7 years of this is not good enough. Knott can get his bonuses but he and the remuneration committee must be blind to their past RNSs and the state of the share price.
PIs have every right to feel more than frustrated. Institutional managers only have Savp amongst a raft of investments in their portfolio so may take a more passive view but i'm sure there comes a point when their patience is also stretched.
There comes a time when shareholders action must hold the management to account.

I couldn't see Savp getting involved with the Lekoil asset. Too soon and too much capital needed when they have so much else to do and i think it would be ill judged at this point.

The other core focus is on Niger so if they are hunting for a partner there, it would be strange to be side stepping for Leks asset that needs a lot of capital otherwise why seek a partner for Niger.
There will be numerous asset opportunities along the way i don't doubt.

Lek management abo****ely woeful in their dd and judgement and can't see why they should remain in post.
Comes after uk listed tiddler MX Oil in Nigeria brought on a middle east sheik as a strategic investor for its Nigerian field and changed its name to ADME after the sheik - shares rose about 10 fold, he cashed in all his stock and left the company after a few short months and the shares bombed out. Saying that they were a woeful company before they ever got involved in Nigeria and asset hopped from country to country (Mexico/Grenada etc) and diluted shareholders out of sight many times over and at previous companies where some of the manement were involved but the last catastrophe being Nigeria will be the one it's remembered for as it's name been changed too often that no one wiull remember the past debacles. (it still operates as a partner on the Aje field next door to Leks asset that now has the funding problem).
Afren - enough said.

You can see the perception some have of Nigeria when you add it all on to the telephone and email scams about free money - but a lot of it is down to management of the companies involved and not the country. Yes you have some level of violence and unrest in part but so do many other countries and Colombia used to be a similar situation and attracted huge investment.
Many majors have been there for years.
Tony Buckingams Heritage Oil built a huge operation in Nigeria as well as other countries,
Eland Oil & Gas recently bought over by Seplat - both solely Nigeria.
Savp - personally i think they have strong management and legal teams/neds and employed top notch legal firms both here and in Africa. (reported by Africa Intelligence) and backed by calibre of high number blue chip investors/world bank arm. Two country focus (so far). So perhaps if it takes time in doing things right maybe it's something we should be greatful for when you see how some other companies have attracted nothing but scandal.

Can't fault you on your timescales Kalahari about selling down so good luck wherever you invest.

Hopefully significant reserves increases as well over the next 14 months.
Due circa March this year and again yearly.

Well good old Munchbox is certainly a brand new holder there. Lek management duped by fake Qatari investment fund representatives - still he warned us and ridiculed all here a few weeks ago about Savp and AK in Niger/Nigeria - and buys into Lek with multilpe posts contrary to what he posted here about markets, management etc. Wise words from Mr. B - wonder did Mbox heed them ?

M/box Savp: 23 Dec 2019 Good luck guys. Your gona need it. AK is useless and it will be a long long time before this recovers or even thinks about rising above 30p. It seems AK has lost credibility in the City although he managed to pull off the complete seven TO a million years later. Good luck here. You will certainly need it.

M/box Savp : 02 Jan 2020 21:11 I’ve read many credible investors new year predictions and many expect a minor sell off of around 10% on the markets. It’s safe to say the sellers have many more shares to offload here. 17-18p is very much on the cards. AK has tricked many in to investing and now he must deliver ...... in Nigeria / Niger ..... good luck trying to succeed.

Mr. B Savp: 02 Jan 2020 You’ve sold out as you’ve posted and now you’re trying to justify your actions by de-ramping a share you are no longer invested in. A weak attempt at trying to put investors off but actions I would describe as lower than a snakes belly. Jog on there’s a good fellow and concentrate your efforts on your own investments because by Jolly Roger you will certainly need all the luck in the world :)
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M/box Lek: What a load of tosh 05 Jan 2020 12:21
Why you talking about market falling when Lek sp is down 80% ytd?
The market can do what it likes ..... won’t effect Lek at all. And in any case there’s so much material news due that anyone who sells trying to buy back Cheaper will
Miss out on 40-50% gains.
M/box Lek: 03 Jan 2020 17:16
Jan -15p
Feb-25p
March - May will see consolidation around 30-40p
July August this will explode to 70p on ogo drilling
Year end £1.20 minimum

If you're looking in M/box, I don't like to see anyone losing out but this is certainly one where we could say thats a kick in the teeth to you how you rubbished us here.

By this coming Monday, It will also have given the latest well around 30 days of production data.

16-12-19
'Initial three-day production rate at the BN 95-5H horizontal well ("5H") is 8,250 barrels of oil per day ("BOPD"), exceeding management's expectations.
The Company will announce additional well data, including sustained rates, with its operations update in January 2020.'

Isn't this the company that had reservations about dealing with AAOG in the past reported in Africa Intelligence ?
Rick Crist ?

I posted this back in April 2019 from AEI

' Anglo-African's David Sefton trusts Berwick with new venture
David Graeme Sefton, the founder of the British junior active in Congo-B, Anglo-African Oil & Gas, has embarked on a new venture with the launch of the UK-based Anglo-Tunisian Oil & Gas. This company will be headed by Sefton's right-hand man, the French-speaking boss of Anglo African Oil & Gas James Berwick, at the helm since January 2018. Berwick previously held senior positions with Ophir Energy and Impact Oil & Gas (AEI 810) .

According to our information, the new firm has already struck up talks to pick up all or part of Indonesian oil group Medco's Tunisian portfolio. Since 2014, Medco has held stakes in eight blocks, seven of which it operates. Two of these, Adam, operated by Italian major ENI, and Bir Ben Tartar already produce some 16,000 bpd. But the discussions seem to have hit a snag for the moment. It appears the financial firm overseeing the sale of Medco's shares, Askell, headed by American national Rick Crist, is reluctant to validate the transaction. When contacted, neither Crist nor Sefton wished to comment '

In Niger, there's beeen no word on the 1st term that was already extended for 1 year on R1/R2 before any relinquishment. Neither any mention on R3/R4.
I expect this is all part of any negotiations and farmout as well as needed or clarity for the CPR.

There was mention of ONGC and significant Asian farmin interest mentioned in Sept/Oct last year.
Today, AEI reported that DIG are looking into any relinquishment opportunities from any of those 4 blocks as well as additional blocks elsewhere in Niger.

There was an estimated cash inflow of $54m and $20m at time of deal conclusion ie $74m.
Savp recently said they expect $15m cash to be on the books and $40m less debt on the assets acquired.
In addition a $50m oil trading group facility with $20m initially available as well as the renewal of the OraGoup banking facility.
Should be ongoing monthly cash flow of $10m depending on payment times/conditions before any new customer additions.
On top of this $5m + interest to be repaid for a short term facility out of a total 2 tranche available facility ($5m undrawn).
In light of the above you would expect the $5m facility to be repaid in cash but the option is there to pay for it in shares.
Why did they put a total $10m 2 tranche facility in place if they are/were going to pay the first tranche off in cash - otherwise why bother having a second $5m drawdown facility in place ? This just lends me to think they could repay it in shares.
While some think this would send out a bad signal - maybe, but if you didn't attract the best farmin partner on the right terms, it could mean, hanging on to as much of the asset as possible on a 100% basis and gather in as much cash as possible to support and deliver on drilling without continual ongoing delay.
That was my reasoning behind why i thought they might repay the short term facility in shares and given the fact that two $5m tranches were available. Like i said previous it would shave a penny of a 50p share price, but worth considering the bigger picture - if they did issue those shares i would like to think they would combat any misconception by having a full operational update /forward plan as to why any shares (if at all) would be issued in terms of the current cash inflow, cashflow and other facilities available.

I don't own a single share Tiburn.

I merely think that if Tilapia goes down the pan for either Align or Zen, it's only Zen that have any other assets.

Likwise if Tilapia only ever managed to struggle on with a few hundred bls a day, it would be more suitable for Zen when combined with their other producing assets - Whats Align going to have to do to grow this ?

Tiburn, I have read it and i don't disagree with what Alex says they would do. One thing you need to consider is how much production they can get post frac and for how long as a result of that if successful as well as understanding future dilution to get anywhere near to a reasonable share price again. While fracking should be expected to increase the production, it won't increase the 2C much at all. The future capital needs i beleive outweigh what the Mengo can deliver - in my opinion. If they can do that it would be then able to recognise that 2C as 2P reserves - something any new CPR could not do, either for the Mengo or Djeno that Sefton said was being awaited at the time and turned into a PR disaster.

Tiburn - Seriously what the heck is wrong with you ?

Do you want to stifle all comment/debate ? Maybe if you hadn't, people would have seen the problems emerging here many months back . Like before, anyone who comments with something you don't agree with or like is a troll. Trolls didn't put the company where it is. I neither support Align or Zen. By the way where the multi million offer from New Age that you told us about ???