Savannah Petroleum PLC Seven Energy Transaction Update (2871O)
October 01 2019 - 1:00AM
UK Regulatory
TIDMSAVP
RNS Number : 2871O
Savannah Petroleum PLC
01 October 2019
1 October 2019
Savannah Petroleum PLC
("Savannah" or "the Company")
Seven Energy Transaction Update
Savannah Petroleum PLC, the British independent oil & gas
company focused around activities in Niger and Nigeria, is pleased
to provide an update in relation to the Seven Energy Transaction
(the "Transaction").
Final long-form documentation has been signed by Frontier Oil
Limited ("Frontier"), Seven Uquo Gas Limited ("SUGL") and Accugas
Limited ("Accugas") in relation to the restructuring of economic
ownership interests at the Uquo marginal field and the operatorship
of the Uquo gas central processing facility (the "Uquo CPF"), in
line with the Company's RNS dated 20 September 2018 (the "Frontier
Transaction"). The Frontier Transaction will result in SUGL
assuming responsibility for all operations (including production)
of the gas project at the Uquo marginal field (including, inter
alia, control of gas-related capital investment projects, design
and implementation of operations and production plans, as well as
day to day gas operations at the Uquo gas field) and will retain
100% of the revenue from gas sales. Frontier will control all oil
related activities in the Uquo Field and retain 100% of revenue
from oil sales. Operatorship of the Uquo CPF will be transferred to
Accugas. Following completion of the Frontier Transaction, the
Enlarged Group will have effective operational control of the Uquo
gas supply chain.
The key terms of the Frontier Transaction are as per the
Company's RNS dated 20 September 2018. The Frontier Transaction is
conditional upon completion of the wider Seven Energy Transaction,
and is expected to occur following Transaction completion.
The principal remaining condition precedent for the Transaction
relates to the execution of long-form documentation in relation to
Seven Energy's financial restructuring, following which the
Transaction completion process will commence. This completion
process will follow the pre-agreed steps set out in the legally
binding Implementation Agreement signed in February 2019.
Further updates in relation to the Transaction will be published
as appropriate, with completion followed in due course by the
publication of a Supplemental Admission Document.
Andrew Knott, CEO of Savannah Petroleum, said:
"The signature of the Frontier Transaction documentation
represents the achievement of one of the final remaining milestones
to be reached as we move towards completion of the Seven Energy
Transaction. The Frontier Transaction is of strategic significance,
affording the Enlarged Group increased operational control across
the gas value chain and enabling us to maximise value from the Uquo
gas field. I would like to thank the Frontier and Seven teams for
their support in finalising this key workstream, and I look forward
to providing further updates on the Transaction as we move towards
completion in the coming weeks."
The Seven Energy Transaction refers to the planned acquisition
by Savannah of the Seven Assets and the restructuring of Seven
Energy's existing indebtedness, as more fully described in the
Company's Admission Document dated 22 December 2017 and per the
Company's RNS announcements dated 20 September 2018 (specifically
relating to the Frontier Transaction and the buy-out of minority
shareholders in Universal Energy Resources Limited) and 21 December
2018 (specifically relating to the acquisition of an additional 60%
interest in Accugas as well as the sale of a 20% (less one share)
interest in SUGL and Accugas to AIIM). Unless otherwise defined,
capitalised terms in this announcement are per the above Admission
Document and RNS announcements.
For further information contact:
Savannah Petroleum +44 (0) 20 3817 9844
Andrew Knott, CEO
Isatou Semega-Janneh, CFO
Jessica Ross, VP Corporate Affairs
Strand Hanson (Nominated Adviser) +44 (0) 20 7409 3494
Rory Murphy
James Spinney
Ritchie Balmer
Mirabaud (Joint Broker) +44 (0) 20 7878 3362
Peter Krens
Ed Haig-Thomas
Jefferies International Limited (Joint
Broker) +44 (0) 20 7029 8000
Tony White
Will Soutar
Numis Securities (Joint Broker) +44 (0) 20 7260 1000
John Prior
Emily Morris
Alamgir Ahmed
Celicourt Communications +44 (0) 20 8434 2754
Mark Antelme
Jimmy Lea
Ollie Mills
The information contained within this announcement is considered
to be inside information prior to its
release, as defined in Article 7 of the Market Abuse Regulation
No.596/2014, and is disclosed in accordance with the Company's
obligations under Article 17 of those Regulations.
Notes to Editors:
About Savannah Petroleum
Savannah Petroleum PLC is an AIM listed oil and gas company with
exploration and production assets in Niger and Nigeria. Savannah's
flagship assets include the R1/R2 and R3/R4 PSCs, which cover c.50%
of the highly prospective Agadem Rift Basin ("ARB") of South East
Niger, acquired in 2014/15. The Company is in the process of
acquiring interests in the cash flow generative Uquo and Stubb
Creek oil and gas fields and an interest in the Accugas midstream
business in South East Nigeria from Seven Energy.
Further information on Savannah Petroleum PLC can be found on
the Company's website:
http://www.savannah-petroleum.com/en/index.php
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDEASEFEELNFEF
(END) Dow Jones Newswires
October 01, 2019 02:00 ET (06:00 GMT)
Savannah Energy (LSE:SAVE)
Historical Stock Chart
From Apr 2024 to May 2024
Savannah Energy (LSE:SAVE)
Historical Stock Chart
From May 2023 to May 2024