Savannah Petroleum Share Discussion Threads

[alamaison5] 14/11/2018 13:16

Yes it is quiet. But this news was expected - unless you were Alamaison, guaranteeing a duster! This drill along with the previous 4 make the potential of the entire area huge - I don't think this has sunk in yet and consider us to be severely mispriced/undervalued.

[timberwolf3] 10/11/2018 15:32

Nigeria plans railway northwards to Niger
10 Nov 2018

NIGERIA: Alongside the many projects to develop new 1 435 mm gauge railways to augment and gradually replace Nigeria’s 1 067 mm gauge network, the government has unveiled plans for a line running north into the neighbouring Niger Republic.

The 248 km standard gauge route from Kano to Maradi would also serve Nigeria’s northern provinces of Jigawa and Katsina, passing through Dutse, Kazaure, Daura and Katsina before crossing the border near Jibia.

Announcing details in Abuja last month, Nigerian Transport Minister Rotimi Amaechi said the line was being developed by the two governments in partnership. ‘This is part of our efforts to promote regional integration and trade between our two nations,’ he added.

Candidly, he admitted that the government was hoping the rail link from landlocked Niger to Nigerian ports would help to capture export traffic which currently moves via rival deep-water ports in Benin, Togo and Ghana. ‘The decision of the rail line getting to Niger was to try to get other neighbouring countries to transport their traffic through Nigeria, looking at the economic viability of that service’, he explained. ‘Having the train in Maradi will open up trade from other neighbouring countries to ship their goods through Nigeria, from Kano to Lagos.’

The railway would also serve a new oil refinery which is to be built in Maradi under an agreement between Nigeria’s Minister State for Petroleum Resources Ibe Kachikwu and Niger’s Energy Minister Foumakoye Gado earlier this year. Under that deal, Nigeria would assist with the construction of a crude oil pipeline to link the refinery with Niger’s rapidly-developing oilfields, augmenting the existing refinery at Zinder which mainly exports via a pipeline to Chad.

Amaechi did not reveal the likely cost or timescale for the Maradi link. However, he hoped to see the 156 km standard gauge line between Lagos and Ibadan completed by the end of this year. Following a site visit at the end of August, he reported that construction was around 60% complete, with 90% of the earthworks in place and 12 km of track laid, despite delays caused by heavy rains.

Discussions are currently underway with China’s EximBank for a loan to fund the rest of the standard gauge route from Ibadan to Kano. Nigeria is seeking US$8bn to fund a double-track line throughout, but last month the Chinese suggested to Amaechi that building the Minna – Abuja section as single track would reduce the cost to US$6bn, keeping the project within the agreed funding envelope.

[divmad] 09/11/2018 11:40

So where is SAVP's Niger partner news then?

[ifthecapfits] 09/11/2018 11:02

thanks for posting

[timberwolf3] 09/11/2018 10:58

Article on Niger and Savannah

[ifthecapfits] 07/11/2018 09:00

This is like watching paint dry.

[buffythebuffoon] 05/11/2018 08:24

You learn something new every day. I didn’t realise that.

I hope you’re keeping well. It’s been a long time.

Buffy

[ngms27] 04/11/2018 22:41

Arh Buffy that's the joys of a spell checker and no editing of posts from an iPhone being possible.

[zengas] 04/11/2018 18:01

Africa Oil and Power

4/11/2018

Fortune Favours the Bold in Niger

The story of oil exploration in Africa is one of many failures and victories, of bold bets in unexplored areas that have brought great returns, of lands where only a bold few decided to venture in the search for riches. This has been the story for many of Africa’s current oil and gas hotspots. It is hard to imagine that at one point in time, no one believed that Equatorial Guinea had oil or was even willing to try to find it. Sudan, Chad, Kenya, Uganda, Tanzania, Senegal, Liberia… they are all in one way or another, nations whose potential was for a long time snubbed by international oil and gas companies, until one bold player took the chance.

The Republic of Niger is the newest country in this list, and one that is attracting more and more attention. Just since April 2018, junior British independent exploration and production company Savannah Petroleum has recorded five consecutive commercially viable oil discoveries in its R3 and R4 Production Sharing Contract areas in the Agadem Rift basin (ARB), in the Southeast of Niger.

Savannah’s successes over the last 8 months have not gone unnoticed by oil players in the region. Just this week, Oranto Petroleum, Africa’s most prominent indigenous oil and gas company, through its chairman, Prince Arthur Eze announced the signing of a memorandum of understanding with the Ministry of Petroleum of the Republic of Niger for the acquisition of blocks R5, R6, Dibella and Dallol in the Tenere and Agadem Basins. Both R5 and R6 border Savannah’s other exploration licenses in the Agadem Basin, R1 and R2

Oranto’s move is symptomatic of the growing profile of the Republic of Niger as an oil and gas frontier market. It is likely that we will witness similar moves by other international oil companies in the months to come. Years from now, we’ll look back and be surprised by how long it took for oil companies to explore a country that was so evidently rich in oil, bordering Chad, Nigeria, Algeria, Libya and Congo, all well established oil nations.

The true player that took the risk of exploring in the Republic of Niger when everyone else had given up was not Savannah or Oranto, but the China National Petroleum Company (CNPC). In fact, history will tell how there was a before and after CNPC in the Nigerien oil industry.

Between 2011 and 2014, CNPC has made 95 discoveries from 129 exploration wells, confirmed over one billion barrels in oil reserves and has completely changed the profile of the Republic of Niger as an oil nation.

[buffythebuffoon] 03/11/2018 17:47

He’s old enough to forget my name.

Buffy

[mount teide] 03/11/2018 14:39

ngm - ref: Ithaca empire building - recall you describing it as such when discussing why the management had turned down an approach from a Middle East State Oil Company to pursue their own growth strategy.

[ngms27] 03/11/2018 13:31

Younger than what Buddy thinks!

[thelung] 02/11/2018 19:29

How old are you JT if you don't mind me asking?

[ngms27] 02/11/2018 14:04

Just one final point, Ithaca didn't build an empire, it effectively had a single asset and was a leveraged play on POO with the asset close to production.The takeover was icing on the cake.HURs a similar play right now but in a stronger POO environment but with much more potential reserve growth.So guess where most of my monies are invested!

[ngms27] 02/11/2018 13:57

That was indeed the case but I still made very decent money. As my ex working buddy Pyad says always leave something for the next guy, given you never know where the top will be and whether it will all come tumbling down.In the meantime I believe I've held SAVP longer and not made a bean.Time is money and all that.

[rampair] 01/11/2018 16:51

I hope Mr K does want to build an empire, then my families cash will go with it.
He has a good team and let’s hope they show us what their deal execution is like.


I hope we do very well from this, as I hope the Niger and Nigerian people do too.

[mount teide] 01/11/2018 14:40

'I'm not interested in building what some call a decent company at the expense of the share price.'

Bit rich from someone who sold out of Ithaca at 40p only to watch the empire building management take it all the way up to 112p within a year.

[buffythebuffoon] 01/11/2018 14:39

Come on JT, that post makes you sound a lot thicker than you are.

We both agree that if we had the money to drill Niger, having never got involved in Nigeria, then the resulting share price increase after all those hits would have been far far greater. We’ve done that, let’s move on.

You seem blinded to the literal reality of building an empire, and the phenomenal returns that can be produced, as opposed to the modern usage of the term, which is employed to disparage the activities of CEOs.

AK has huge multiples of what you have in this. Do you not think his and our interests are aligned?

I accept that you are an old bloke and he isn’t, so timescales might not be fully aligned, but that’s your problem. He’s there to do the best for all shareholders, and I’m telling you now, the overall return from investing in SAVP will be quite spectacular.

Buffy (much older than him, but still younger than you).

[ngms27] 01/11/2018 13:27

As a shareholder I'm not interested in building what some call a decent company at the expense of the share price.

All that matters is shareholder return not the building of empires.

[buffythebuffoon] 31/10/2018 14:18

"Maybe recent downturn in market/oil prices has impacted? "

The exponential rise in the OP didn't do much for us did it!

I'm happy watching the scorecard tick up. The asset scorecard that is.

I only need the share price to move much later.

For now I'm happy risking my fingers down the back of the sofa in order to top up.

Buffy

[rampair] 31/10/2018 08:20

The agreements are in place for a decent business already & recently added amendments
we’re positive.
The market is more or less discounting Nigeria anyway imho, plus the revenues are being paid to go to us in the event of completion. I’m sure that if it meant losing money, Management who have far more in this than I do could revert to the current iteration of the deal. For all we know it could be that a Nigerian Court has ruled on the ownership of some complementary asset and AK would like to buy that asset.

We have excellent partners in Niger, This asset alone pretty much covers the current
SP, the basin is prolific and with an early production system gives SAVP an excellent
start to Revenue. This, plus the partnerships created will see a decent company form.

Add in Nigeria and we are,already a formidable company, it is reassuring that Management hold a decent lump of shares!

R.

[thomasthetank1] 31/10/2018 08:15

Cantor Fitzgerald note on this morning’s announcement below.

Savannah Petroleum ↑ (SAVP.L, 31p, £253m) said that the acquisition of Seven Energy was progressing, although the company is now seeking to amend some of the terms of the deal following the recently announced deals with Frontier oil (a gas for oil swap) and buyout of Universal Energy’s minority shareholders. These amendments will be in SAVP’ favour and will improve the metrics of the transaction and position in Nigeria. Whilst the extension of the acquisition time is somewhat frustrating, we can’t fault Andrew Knott for squeezing more value out of the deal, which will ultimately add more value to SAVP. Positive