Member Info for ZENGAS

With �2m cash Wick only needs �2.3m to drill to a dry hole status. If it comes in there'll be no worries I would think on a few more �m to complete. Either way, it's possible that any producing or near term producing asset could supply that cash come drill time. I don't know who follows AD V FN butback in October I posted the link from Africa Intelligence on their report that UPL hoped to secure a licence there soon in Morocco. The m'cap is only �5.75m with �2m cash and the Wick asset that could deliver �200m+ in future value on their 40% (described as relatively low risk). I said I wouldn't mind if they double their m'cap with a lot more cash on any next asset. They picked their first asset up at 1p, the 2nd then one year later in Dec 2016 (now dumped due to planning) at a 30% premium at 1.3p. Just maybe if any capital is raised if needed on a new asset and with the directors with sizeable holdings they'll want a further uplift than before and any asset could likely attract better capital given the much improved oil price.

I said yesterday (on ad v f n ) that Wick could be worth �200m. I think only now regardless of any other acquisitions in the pipeline, some are catching on to the size of the assets and what they could create. 250mmbl in place Wick prospect. 30% recovery and 40% interest means a target of some 30 mmbls net. Without giving a price target, do the maths on shares in issue, plus likely future shares for these upcoming acquisitions (not forgetting the value potential from those when they arrive) and you can see why this could be many multiples of where it is now on a success case. No wonder the directors hold such a massive amount. I'm a holder in i3energy and this is an excellent example to correlate the Wick value success case (described as relatively low risk) in their recent presentation. i3e have a pre production valuation for the 11 mmbs at Liberator of $93m and with a 2nd field of 22 mmbls = total 33 mmbls and a total value of $279m (ie �199m at �1/$1.40 exchange rate) ie $8.45/boe. They then expect a further valuation uplift when production starts later in the year tof $557m (�397m). Page 7 for reference https://i3.energy/wp-content/uploads/2017/03/20171108-i3-Corporate-Presentation.pdf

On the 16th the exchange offer was to be launched within the next 7 days and remain open for not less than 10 (business) days. 7 days tomorrow and if on schedule then that takes it to Tuesday 6th Feb re the 10 business days with the both the placing and consideration shares shares to be issued shortly after. Should be some news on the Strategic partnership also.

�2m cash confirmed. In respect of Morocco/Tunisia it's the first I've seen or heard mention of a permit with estimated in place resources of over 1 TCF gas potential. When they mention in the following line of multiple low risk discoveries and prospects - are they implying that these are on that 1 TCF+ permit ? (page 13). The CEO here was instrumental in getting the Morocco gas discovery permit for Fastnet that they didn't drill yet Sound eventually acquired it and helped take them to a �1b valuation.

Fair paly to David Sefton. There's obviously been other problems to contend with imo. McDonald 'resigned from the board and submitted his resignation as an employee' - This was a man who had gone from CEO to Country Manager at AAOG. Today he didn't even get a mention by David Sefton in the comments section of the press release - where as Sefton praised the non exec PJ Davies. "I also want to take the opportunity to thank PJ Davies for his very substantial contribution to the Company, and his resignation is a matter of considerable regret".

He looks to have specifically and consciously left Impact to join AAOG as he only left Impact on 31/12/17 London, January 3rd 2018: Impact Oil and Gas Ltd (�Impact�), the Africa-focused pure exploration company announces the departure of its Commercial Director. As of 31st December 2017, James Berwick has resigned from his position on the board of Impact Oil and Gas Ltd. James leaves Impact having played a key part in the growth of the company through its portfolio and partner base. We wish James all the best in his future ventures. https://impactoilandgas.com/news_detail.php?id=departure-of-commercial-director-

I'm a bit more confident about AAOG as a whole rather than just Tilapia. I'm sure i picked up somewhere pre christmas/recent months that AAOG might go beyond the Tilapia field into other assets. I can't find anything in the press releases but haven't listened to all the interviews but i'm sure i heard and picked up on something that suggessted they could go beyond Tilapia ?. McDonald is gone and a few others. Had McDonald any inclination at his age to grow the company or just sit back on the envisaged rewards from Tilapia ? I always thought from the outset it was a limited strategy and why just sit on this one field until it eventually expired ? Had they no goals ? Again if successful, dividends are great but surely they could put some of the cash to greater use ? Tilapia if anyway successful even just in the Mengo could throw off significant revenues. The oil price is a lot better now than it was when AAOG came to market. What would take James Berwick to AAOG ? (not the snouts in the trough comments please) or to spend his time on one field (whether the licence came through or not)? It's worth taking a looking at his history, his achievements and the assets he introduced elsewhere. At Impact ( a private company) from 2013 he "has introduced several world class assets to the Impact portfolio and is a key member of the team driving the next stage of the Company's growth"!. Look where those assets are now - farm outs to Total, Stat-oil, Exxon and CNOOC (Chinese) all majors ! Also at Ophir which is now worth north of �500m he was responsible for the acquistion of the nmajority of Ophirs assets up to their IPO. Now taking up his role as a new and first time CEO at an oil company i just somehow doubt at his age this would be the pinanncle of his career to sit it out on one asset where at the previous two he was involved in bringing multiple assets on board. Surely (like me) he recognises the potential and greater growth for shareholders could come through bringing further assets onboard and putting the cash throw off (on a success case) to better use. In addition the oil price has much improved since so even more incentive to gow a company rather than live off it's dividends before that at some point ends or dwindles. From AAOG - "The appointment of James Berwick, whose experience and track record in the African oil and gas sector is outstanding, represents a step change in the executive capacity of the Company to deliver on its strategy." The choice of "Step Change" is interesting. From Impact "https://impactoilandgas.com/news_detail.php?id=impact-oil-and-gas-board-appointment - James has introduced several world class assets to the Impact portfolio and is a key member of the team driving the next stage of the Company's growth.

The accounts show they had �2.25m at the end of June 2017 with �91k liabilities due. �160k due back from the Wressle termination. So about �2.43m less another 7 months running costs plus the costs of evaluating any projects so possibly around �2m now I would say. The net cost of drilling the Wick well by the end of the year to a dry hole hole status is �2.3m. I doubt they'll need the capital for that yet and more likely to have a possible new asset first. I don't know what is happening with Hardstoft but one well was previously pencilled in for 2018 and a second in 2019 at a cost of $500k net each with possibly the 2nd one being self financing - but again with all the planning issues over Wressle I'm not sure how this reflects on moving Hardstoft forward. On Hardstoft, Optiva had a price target of 2.3p on 0.8 mmbls based on the original share issue prior to the the placing at the time of Wressle. This would obviously fall to 1.3p based on the last placing where there's now 383m shares in issue. There is a further 9 times potential upside on the possible oil to over 7 mmbo net against the 0.8 mmbls used on the s/p target but unfortunately no news so far with what the plans are for that project.

Maybe that's where's the second $60m may go from the strategic partnership, along with some of the $88m/year cash flow ?.

I believe it will happen one way or the other but I actually believe 2 pipelines could eventually evolve over the next 5+ years given other exploration. If there are any major discoveries on the United Hydrocarbons block next door to Agadem on the Chad side, they also will want to get their oil out and the 2 areas are adjacent relative to a pipeline meaning the Chad link could be smaller so less expensive than before. Octogone and others were supposedly interested in bringing a pipeline and expanding to the fuel terminal at Cotonou in Benin. There's huge existing capacity in Kaduna so at least 3 options. I would expect the World Bank to be involved as this would help to transform Nigers economy. World Bank arm of IFC are now a Savp investor.

Latest subscription article 9th Jan 18 in AEI "Niamey and CNPC champion optimist outlook for oil exports". States Niger and CNPC aligning their public stance. Cheng Cunzhi CEO of CNPC assured AEI feasibility assessments for pipeline layout in final stages. Niger oil minister wants these presented in early 2018. CNPC have 'committed $1-$2b for infrastructure to which will be added a further $2b for upstream ops.' Minister says this will help CNPC resume exploration in the North of the country (Bilma block). Quote "very rosy outlook" given previous obstacles re cost and low prices and security. Chad Doba-Kiribi link supposedly shelved before (but AEI wrong before given improvement in oil prices since 2015). The other two options are to Cotonou in Benin and Kaduna in Nigeria.

9-1-18 AEI Gulf oil-rich States play big on Savannah's projects Sponsored by several Arabian Peninsula nations, multi-fund asset management firm ASMA Capital will pitch in to help the junior with its projects in Nigeria. Savannah Petroleum's late December deal with ASMA Capital Partners, which will invest up to $90 million in the junior to help it buy Seven Energy's assets in the Niger Delta, is the sign of the Gulf States' growing interest in Nigerian oil. Manama-based ASMA's current shareholders include the Kingdom of Bahrain, but also Saudi Arabia's Public Investment Fund (PIF) and Public Pension Agency. Further investors of the fund include the Islamic Development Bank (IDB), which is largely financed by Riyadh, and the oil-rich Asian sultanate of Brunei. With this financing, ASMA has been investing in highly profitable projects. For Savannah the transaction will mean having the available cash to acquire Seven Energy's stakes in the Uguo and Stubb Creek fields, where production is expected to reach 20,000 boepd in 2018, as well as Accugas' pipeline (AEI 805). It also shows ASMA's confidence in the value of Seven Energy's assets after previously granting the junior $50 million in 2016. Financing Savannah fits in with the investment strategy taken by these oil-rich States which, while they tend to opt for ways to steer their economy beyond petrol, are still keen to invest in prolific fields outside of the national territory. The Saudi pension fund PIF, overseen by crown prince Mohammed bin Salman, has decided to focus its investments on emerging countries, including Nigeria, as a means to secure long-term revenue. In November, the fund organised a summit in Riyadh attended by a number of African businessmen including Adewale Tinubu, chief executive of Oando, a firm active in Nigeria. In 2016, the IBD opened an office in Lagos with the aim to turn this into its African hub. At diplomatic loggerheads with Qatar since June, Riyadh and Manama are countering the emirate's own offensive into West Africa, where emir Tamim bin Hamad Al Thani travelled to in late December, announcing a series of new investments.

Post transaction, I reckon a further acquisition is on the cards near term, particularly as they mention this current marginal field round. There are over 40 fields up for grabs. "At least 25 of the fields could produce 5-10,000 boepd" Possibility to grow quite quickly imo. Key is the average $88m of free yearly cash flow which self funds additional re-investment opportunities and getting up to critical mass - thus generating further free cash cash flow. This is one reason why I believe it is heavily institutionally supported and why I also voted to support this deal as a stepping stone to greater things.

Page 13 "Paying $280m to acquire hard assets with CPR valuation of $663m" (or �490m which is about 55p). Upside potential of additional 44 mmboe 2C and further estimated 85 mmboe prospective resources. Page 39 3X Niger R3 propsects have 226 mmbo unrisked recoverable mid case in first and secondary targets - This quarter. Page 37 Average $88m/Year free cash flow "+multiple reinvestment opportunities". Definitely heavily institutionally backed. Dividend of about 3% estimated for 2018 financial year.

Six (6) of the original existing institutional shareholders in the company intend to support the transaction by subscribing for over 116m shares ie £40m/$55m or nearly half of the $125m. Standard life increasing from 27.2m to 44.346m Fidelity 26.841m - 39.144m Capital Group 21.968m - 66.934m. Legal & Gen 18.16m - 28.16m. Henderson 13.571m - 42.83m. Miton Asset Mgnt 5.98m* - 42.857m. New additional investors - VR Global 97.3m. Ashmore 58.576m. IFC (part of World Bank) 38.972m. Someone mentioned that the company could go bust if the deal did not go through. I have always thought that totally nonsensical given institutional support. On the balance of risk and on balance of probabilities to risk, I beleive that the same institutions would equally support funding of Niger on its own in the absence of any transaction. Think about this - If these 6 existing institutions were unhappy with Nigeria or with management, then I doubt they would be supporting the transaction to the degree that they intend to do or otherwise they would be voting against it to block it. In addition the previous fundraisings were 56p ($50m) and 2 x 38p ($36m & $40m). Over the history of Savp I have kept an eye on the average placings which totalled £83.1m. This amounted to 194m shares. The average cost was 42.8p. With these same institutions adding and proposing to add post 1st tranche at 35p - the average for 5 of those institutions is still around 38p. Sure there will be the average PI who will not support it simply because of the country but on it's own it still offers upside in it's own right as any country does and any cash generation is a platform to greater and better things ie Niger and further asset acquisitions (M/field round this coming quarter?) What if a further field or two is added with existing production and cash flow ? Surely that also would or could go to addressing Niger ramp-up if early oil discovered ?

were in a similar situation with cashcalls for the assets being paid out upfront. " The completion of each of the Acquisition Agreements is subject to the satisfaction (or waiver, where applicable) of a number of conditions, including: obtaining the consent from the Artumas bondholders to their release of the security they hold over the Assets; obtaining the consent from the JOA Parties to the Company’s proposed acquisition of the Assets; obtaining the relevant approvals for the Acquisitions and ancillary arrangements pursuant to them from the relevant government authorities of Tanzania and Mozambique; in the case of the Mozambique Assets, there having been no attempt by the JOA Parties to pre-empt the acquisition of those assets; and in the case of the Tanzania Assets, obtaining the consent to Cove Tanzania’s proposed acquisition of the Tanzania Assets from FMO. There is no guarantee that these (or other) conditions will be satisfied (or waived, if applicable), in which case one or all of the Acquisitions may not be completed. Until such time as all of the conditions in respect of each Acquisition Agreement have been satisfied or waived, the Company will not own or have any title to the Assets. There is no guarantee that the Company will successfully complete the Acquisition Agreements and acquire the Assets even if it has maintained the Assets by fulfilling the cash call obligations thereunder. If the Company fails to make such cash call payments it may result in the relevant Assets being forfeited under the terms of the relevant JOAs, EPCs and/or PSA. Until such time as all of the conditions in respect of each Acquisition Agreement have been satisfied or waived, the Company will not own or have any title to the Assets. There is no guarantee that the Company will successfully complete the Acquisition Agreements and acquire the Assets even if it has maintained the Assets by fulfilling the cash call obligations thereunder. If the Company fails to make such cash call payments it may result in the relevant Assets being forfeited under the terms of the relevant JOAs, EPCs and/or PSA.The Group has received limited representations, warranties or other indemnities in connection with the Acquisitions. Artumas currently has liquidity issues which resulted in a qualification to the going concern statement. In the event that Artumas is unable to resolve its financial issues, the Company will acquire the Assets pursuant to the Acquisitions, together with any potential risks and liabilities associated with them, with limited recourse against any person for defects in title to those Assets or for any undiscovered liabilities or obligations connected with such Assets or in respect of Artumas’ obligations to pay amounts to the Company. If any such issues arise after completion of the relevant Acquisition Agreement, the Company could be left without full ownership of the Assets. "

Totalnew As Tidd pointed out the trucking option was to the 110,000 bopd Kaduna refinery that has circa 60% spare capacity and not the 20k Niger Zinder refinery. The intention was to truck up to a maximum of 10k bopd to Kaduna. The breakeven for trucking was $35/b while via a pipeline on the same route takes it down to $26/b. The Chad/Cameroon pipeline previously had a breakeven of $43/b but with Delonex now in the adjoining block (which has some discoveries) and possible world bank backing, the Chad/Cameroon costs could reduce further when split amongst other operators. CNPC possibly aslo looking for more government contribution. I personally will not get hung up on export options nor as i did in Cove Energy. Kenya has also has to get the Tullow/Kosmos oil discoveries out from Lokichar all the way to the indian ocean. Cove Energy sold it's gas discoveries for over £1.2b in deep water Mozambique which didn't have an industry or infrastructure. United Hydrocarbons only entered a $65m farmout agreement in May with it closing in September to Delonex (adjoinging block to Agadem). I don't think Savp have been alone up until now in doing the right kind of deal after the slump in the markets. New Age Africas IPO has long been delayed for now on 3 years. T5 Oil and Gas is supposedly definitely going ahead Q1 2018 by ex Tullow execs also after 3 years delay. T5 has one asset and were previously eyeing Savps blocks. They are seeking capital just like Delonex who have been financed heavily by their straegic partner Warburg Pincus and the IFC . As for Savp, The IFC will become a 4.4% investor here, VR Global Partners nearly 11% and Ashmore 6.5% all for the first time post transaction making up just shy of 22%. Savp have alluded to farm out or some sort of strategic partnership many times so maybe the pending introduction of Asma Capital Partners will count as this partnership/alternative to a farmout.

If they're cheaper next month, i'll be here to buy them. (nen i'm joking)

Another 50k (15:03) and 15k (15:06) bought. Have to get them cheaper than the placing. Thanks to Jim, Pijoe and a few others for helping out.

With the Niger CPR figures in front of us this is one of the biggest value plays on offer. 1. Mirabauds note on Savp is using $4.60/bl for Niger. (oil now in the upper $60s/bl) 2. The mid - high case *unrisked* RECOVERABLE target is 6.9 - 10.3 billion bls oil. 3. The success case is risked at 41% ie 2.821 bls mid - 4.2 billion bls high case recoverable. 4. Becomes *net* risked 2.2 - 3.3 billion bls recoverable after govt take (ie after some 59% failure rate not per well, but across combination of all target zones). 5. If Mirabauds figure were applied to net risked recoverable, target value becomes £7.5 billion mid to £11 billion high case. 6. Using $3/bl gives £4.9 billion risked value target on a 41% success rate mid case (versus $4.60/bl used by Mirabaud which is £7.5 billion of value). "Estimates of reservoir properties have been checked by CGG, and these are thought to be reasonable or slightly conservative" R3 East prospects "All the prospects identified in the area are clearly within the oil discovery trend with discoveries to the northwest and to the southeast".