Savannah Energy Share Discussion Threads

[kinkell] 08/8/2024 15:29

Not sure why you define Chad as a disaster. How much is invested in it? I think it may be a negative figure and there may be a substantial court settlement to come. Similarly we cannot yet judge the outcome of SS.

[ashkv] 08/8/2024 14:32

Just catching up on RNS and this is INSANITY!!!

HOW IS THIS BOARD AND CEO IN PLACE????

SACK THE LOT!!!

AND INVESTIGATE THEM - IMHO THEY BELONG IN A CORRECTIONAL FACILITY!!!!

LEADING US UP THE GARDEN PATH - FAT SALARY, BONUS AND SWEETHEART LOAN TO SAVE!!!

Out with Andrew Knott!!! Worst of the worst!!!

[jnbrw] 08/8/2024 11:32

Fascinating turn of events. As I have said before I remain fully supportive of AK's strategy and efforts.

[rockyride] 08/8/2024 10:57

The South Sudanese government and Nilepet have a clear choice to make here as pre-emption is also risky for them they loss whatever they were getting from petronas for this deal as part of the savannah deal plus they have to pick up future operational costs and development costs and any associated liabilities something they are in no position to do at the moment.Seperately i don't think all the other partners are keen on automatic increase their stake should Nilepet not pre-empt as they are than tied to additional liabilities of production development and growth, they are probably happy with there current holding and if anything they are probably looking for an exit too.......Next few weeks will be interesting one of the comments on the twitter post is DPOC held an emergency meeting yesterday so expect this to be fast moving both ways now considering fixed timeline is now insight

[rockyride] 08/8/2024 10:57

Petronas Formal NoticeToday 11:39Dear SirsSUBJECT: PETRONAS CARIGALI NILE LTD ("PCNL") NOTICE OF WITHDRAWAL FOR BLOCKS 3 AND7We refer to: (i) the Joint Operating Agreement dated 1 October 2012 ('JOA") among PCNL, CNPCInternational (Dar) Ltd ("CIDL"), SINOPEC International Petroleum Exploration and ProductionCorporation :"SIPC*). Nile Petroleum Corporation (Nilepet) Ltd ('NILEPET"), South Sudan Tri-Ocean('SSTO") and DAR Petroleum Operating Co. Ltd ("DPOC") in respect of Blocks 367 ("Blocks"); and (il) theExploration and Production Sharing Agreement for the Blocks, as amended by the Transition Agreementdated 13 January 2012 ('New EPSA").In accordance with Article 14.1 of the JOA and Article 22.3(a) of the New EPSA, and with a completereservation of all its rights, PCNL hereby notifies the other Parties to the JOA and other Foreign Partiesto the New EPSA of PCNL's decision to withdraw from the JOA and the new EPSA through a transfer ofPCNL's Participating Interest in the New EPSA for no additional consideration.PCNL sincerely appreciates the long working relationship it has enjoyed with all the respected partnersand looks forward to working with them to facilitate this process of withdrawal to avoid any impact onDPOC's operations and maximise value to all the partners and the Government of the Republic of Sudan.To this end, PCNL respectfully requests that:Internal Use- Authorired for External distributionNILEPET confirm whether it wishes to acquire PCNL's Participating Interest under the NewEPSA pursuant to its statutory pre-emption right under Section 23 of the Petroleum Act 2012;orCIDL SIPC and SSTO, as the remaining Foreign Parties under the New EPSA, acquire PCNL'sParticipating Interest pro rata pursuant to Article 22.3(a) of the New EPSA.Unless NILEPET exercises its pre-emption right within 60 days from the receipt of this notice, PCNL'sParticipating Interest shall stand transferred, upon the expiry of 60 days from the date of this notice, prorata to CIDL, SIPC and SSTO pursuant to the pre-existing consent from the Government recorded inArticle 22.3(a) of the New EPSA, and PCNL shall no longer be part of the Contractor under the New EPSA.With that, we would like to take this opportunity to thank each and every partner of Block 3 and 7 for thecooperation given to PCNL through all the years we had been in partnership in the Republic of South Sudan. We wish you and DPOC the best of successes in the future.Nilepet has to exercise it's right within 60 days to takeover the Petronas assets from the date of notice which was 7th August 2024 so plus 60 days mean 6 October 2024 is the deadline to pre-empt it's rights.If Nilepet chooses not to pre-empt it's rights than basically all the other existing partners get increased percentage pro-rated on the new EPSA, so basically CNPC, Sinopec and tri-ocean will pro-rata increase their share of Petronas share.

[rockyride] 08/8/2024 10:56

3 good posts from Trustilie over on LSE:-Cavendish our broker note todayToday 10:58Savannah Energy*South Sudan Acquisition Alternative TransactionSavannah has announced that the original proposed transaction to acquire the entire oil andgas business of Petronas in South Sudan is not proceeding, although Savannah remains inactive discussions about an alternative potential transaction to acquire the same Petronasassets. The alternative transaction would constitute a reverse takeover and so Savannahremains suspended from trading on AIM. A further update is expected to be made in earlySeptember; however, the Company is still working towards the previously guided readmissiontimeframe of Q3 or early Q4 2024.Background.in three Joint Operating Companies (JOC) which operate Block 3/7 (40%), Block 1/2/4 (30%) andBlock 5A (67.9%). The portfolio comprises 64 producing oil fields, which in 2023 produced149kboepd (gross). Major partners in the JOCs include: CNPC, Sinopec, ONGC and Nilepet, thenational oil company of South Sudan.A deal still to be done. Petronas has separately announced the withdrawal of its operations in theRepublic of South Sudan. Savannah remains in active discussions with the same relevant partiesabout an alternative potential transaction in relation to these Petronas assets. Savannah will providea further update in early September.Several upcoming catalysts. In Nigeria, the gas compression project at the Uquo CPF is on track tobe completed in H2 2024, enabling Savannah, through its Accugas midstream subsidiary, to increasegas production volumes in the years ahead. Post year-end, Savannah announced plans to increaseits effective economic interest in the Stubb Creek oil and gas field from 51% to 100%. The acquisitionis due to complete in H2 2024. Following completion, Savannah will implement a de-bottleneckingprogramme, which is expected to increase production by 135% to 4.7kboepd within 12 months.In Niger, Savannah intends to commence a flow-testing programme on the key R3 area fields in Q42024, with the first commercial oil production anticipated during H2 2025/H1 2026. Significantadditional longer-term growth potential exists in Niger through the 146 exploration targets identifiedwithin Savannah s licence.In the Renewables Energy Division, Savannah expects to have up to 1GW+ of renewable energyprojects in motion by end-2024 and up to 2GW+ by end-2026.Savannah expects the arbitral proceedings against the Government of the Republic of Chad to beconcluded in H2 2025. In total, the claims are valued in excess of US$1bn.

[upwego] 08/8/2024 07:46

sorry it was on an email from them i got sent today, please ignore didnt look at the date. apologies xx

[rockyride] 08/8/2024 07:13

3rd of June?

[mount teide] 07/8/2024 21:58

'Completion of the Proposed Transaction remains subject to satisfaction of certain conditions precedent, principally the receipt of written approval for the Proposed Transaction from the Government of South Sudan. Following receipt of this approval, Savannah would then progress to finalise an AIM Admission Document to facilitate seeking a restoration to trading on AIM of the Company’s ordinary shares.' ...28th March 2024


'Despite the substantial efforts of all parties since that time, it has not been possible to complete the proposed transaction on the envisioned terms and the original sale and purchase agreement is terminated.'.......7th August 2024

So, the deal went from just needing the written approval from the Government of South Sudan six months ago to not being able to complete the transaction on the envisioned terms today.

Hmmmm.....Very unconvincing sequence of communication - some would say it has all the hallmarks of being highly economical with the actualite!

AIMHO/DYOR

ps reading between the lines it looks like AK holds some hope he may be able to save a little face by striking a deal for some of the assets with Kiir and his Mafia crew, now the shysters have got the assets back for nothing, courtesy of the Sudan War.......Xmas has come early for Kiir with elections due in December.

[mount teide] 07/8/2024 17:31

tim000 - post 3016 'The original terms of the deal are no longer acceptable to Savannah. Any subsequent deal to acquire the same assets will presumably be on much more favourable terms, otherwise Savannah will not proceed with the acquisition. It sounds as if Petronas will, if necessary, relinquish its holdings in the assets for no compensation. So SAVE might then be dealing with the government, which it seems does understand the advantages of overseas expertise and capital. That’s my reading anyway.'

Exactly how I read it.

Enough is enough - the crooks running SS have got the assets back for nothing. AK must either quickly secure a blockbuster deal for these assets from SS by September 2024, or walk.

'Kuala Lumpur, 7 August 2024 – PETRONAS' subsidiary, PETRONAS Carigali Nile Limited (PCNL) today announced the withdrawal of its operations in the Republic of South Sudan.

The decision was made following a two-year period of divestment initiatives in alignment with PETRONAS’ long-term investment strategy amid the changing industry environment and accelerated energy transition.

PCNL will continue to work with all relevant stakeholders to ensure an amicable transition while being mindful of the rights of its employees, in accordance with applicable laws, petroleum agreements as well as PETRONAS’ policy and procedures.'

[fireplace22] 07/8/2024 17:12

scottishfield, Mirror image of UK 2024 then?

[thommie] 07/8/2024 16:28

As I said before, Im also hoping for an end on this SS asset. It was already fishy to operate in this mega corrupt circumstances before the sudan war broke out. Go for offshore working interests without landlocked problems or just leave this african mess completely and aquire assets in asia... African countries dont seem to be interested for foreign investments, they are just able to look forward a timeframe of 1 year at most and plan to earn as much money as possible in this timeframe. Also never do deals with petronas again - they already walked away interessiert chad, giving it for free to chad. At least exxon showed some balls and went the hard way!

[scottishfield] 07/8/2024 16:20

I lived and worked in Sudan (it was all one country at that time) many many years ago. Despite the people being friendly it was a most inhospitable and difficult place. Very very poor of course, ethnic conflicts continually, nothing really worked, challenging climate, water very scarce, transport links are primitive, electric regularly on/off and the politics were continually undermined by regime change. If anything, going by the news in the region today, it is much much worse than that, with famine and all out war thrown into the mix.

Not even thinking about or considering any business matters and financial gains or opportunities, I dearly hope that this is abandoned as in the light of the above it's a complete and total red line for me. So, so disappointing to be even considering this.

If it goes ahead, I shall sell out in a flash.

[tim000] 07/8/2024 16:09

I’m sure we all agree that the AET business model is more profitable than the one SAVE is pursuing. At least SAVE has demonstrated that it will walk away from SS unless any deal is highly favourable, which I interpret to mean little or no commitment to making upfront cash payments.

[gisjob2] 07/8/2024 16:05

I guess the price is what someone is willing to pay.

I personally hope we don't chase this and stop the elephant chasing and get back to our core business of adding value to our existing assets and added the occasional smaller bolt on accretive deal. Both Chad & South Sudan have been an absolute disaster, for which AK has to take some responsibility. This has left shareholders unable to trade for long periods and now facing a likely drop in share price when relisting. For long-term holders who have held patiently since before the 7E deal, AK has failed to deliver any value whatsoever over the years to shareholders. If he can't change this situation quickly then I think he should consider his position. Surely delivering a profit to shareholders is a KPI.

[tim000] 07/8/2024 15:53

My recollection is that oil companies operating in Kurdistan have service contracts, whereby they share the profits from production with the government. SAVE may well want a similar arrangement: no (or much lower) costs of acquisition but sharing in the profits in exchange for investment etc.

[divmad] 07/8/2024 15:47

Does the effective price now go down for these SS assets?

[1madmarky] 07/8/2024 15:45

I agree Tim.
Petronas have just given up, just like they did in Chad. So any other assets they want to sell will probably go for free.
As for Savannah.... lets see what the deal is. It's not like there will be a queue to pick up a stranded asset in the middle of a civil war.

[tim000] 07/8/2024 15:33

The original terms of the deal are no longer acceptable to Savannah. Any subsequent deal to acquire the same assets will presumably be on much more favourable terms, otherwise Savannah will not proceed with the acquisition. It sounds as if Petronas will, if necessary, relinquish its holdings in the assets for no compensation. So SAVE might then be dealing with the government, which it seems does understand the advantages of overseas expertise and capital. That’s my reading anyway.

[divmad] 07/8/2024 15:33

But AK hasn't given up yet on the SS assets, if you read it carefully.

[nk104] 07/8/2024 15:31

Just read it. It includes the phrase 'inter alia' which was a favourite of my old boss. When he used it I knew a very long monologue was forthcoming the meaning of which would be utterly unclear...rather like this RNS.