Savannah Petroleum Share Discussion Threads

[taudelta1] 09/6/2017 07:42

It's a large private co wanting a quote (why would a larger co with a quote bother with an RTO??). It's very likely Nigerian. And it's very possible that after a lot of negotiation it won't happen .. as before! And it will likely take several months to happen (or be abandoned) .. GLA

[diversification] 08/6/2017 22:41

I wonder

hxxps://buzznigeria.com/prospect-oil-wells-discovered-northern/

[thelung] 08/6/2017 22:08

Protection from the damage of a hung parliament....?

[diversification] 08/6/2017 21:28

Hi James

You should have received an email from Jimmy.

Unfortunately this will no longer be taking place given the announcement this afternoon.

However an updated presentation has been uploaded to the website, and we will rearrange for a few weeks' time once we are able to go into more detail on the transaction announced earlier today.

Apologies and thank you for your patience.

Kind regards
Jessica

-----------------

Weeks not months away

[diversification] 08/6/2017 21:22

Given that the shares have now been suspended and financial due diligence has taken place, I think we can expect another equity raise at a premium. If indeed the company to be taken over is a privately listed company who are of a size that find it difficult to list under IPO, given the present challenging market conditions and possible inability to find an underwriter. I had enough unanswered questions before today, I'm now left with a bigger headache all be it one through excitement. These large institutions may want these assets and have the ability to buy a slice of them on the cheap given these challaging market conditions.

[family values] 08/6/2017 20:46

As to time scales here

Think about the drilling, with the first result before the end of September.

How much equity in the RTO before the result?

How much equity with a significant find?

Lots of variables here.

Is the target just unloading assets, or are they after the equity exposure to Agadem?


Is the kilted one any good at poker?

[dorset64] 08/6/2017 20:43

I certainly wasn't expecting to read this news today, especially afters yesterdays 'good' news that sent the share price tumbling. For what its worth and if peeps read yesterdays news again, they might actually see that RNS as good news like I and no doubt a few others.

From the limited knowledge of such, RTO's, I would say if this goes through it will definitely be a step in the right direction and could multiply SAVP into the big(ish) leagues of O&G Co's. I will guess now that the Co. they are talking to have banked reserves, are currently operational and have plenty of upside to them.

This could be a brilliant way to increase our access to funding for our own needs, as in with banked reserves, and by paying for it by all three means mentioned, it would give us access to even more funds going forward with then, our own banked reserves that can be put up for security.

Interesting times ahead and for those saying it will be another 8 or 9 months until the shares are un-suspended, it could be but firstly you need to re-read the RNS again as it clearly states that talks have been officially ongoing for the past 5 or so months, so this is now entering the final stages of DD and could be settled within weeks, who knows.

[timberwolf3] 08/6/2017 20:43

Recent activity over the border in Chad ;

[diversification] 08/6/2017 20:36

One thing that is obvious, AK was right about being financially well backed. When most E&P companies are struggling to raise finance these guys seem to have the inside track. If debt is part of the finance I would of thought that it might be a producing asset as every debt facility has a pay back date.

[lithological heterogeneities] 08/6/2017 19:59

good point.AST bought a company earlier this year for the pipeline.

[gisjob2] 08/6/2017 19:20

Or infrastructure / pipeline into Northern Nigeria

[divmad] 08/6/2017 19:17

But why?

Surely SAVP has, had, enough on its plate with these R1/R2/R3/R4 drill ready targets?

Why more?

Someone else's black box assets.

Why?

Must only be that it comes with the promise of cash to accelerate the drilling of 9 wells.

[ch1rp] 08/6/2017 19:16

Is that 127 000 sold at 17:06 from yesterday????????????

[buffythebuffoon] 08/6/2017 19:11

What is clear is that AK wasn't expecting to have to announce anything now.

Clearly he's concerned at the drop in the SP, as it would almost certainly have an impact on the price of the deal.

That can be the only explanation, as otherwise why would SAVP arrange an investors conference call.

Buffy

[buffythebuffoon] 08/6/2017 19:05

Gersemi,

"Substantially all of their oil and gas assets in the region"

I think not! Lol...

Buffy

[gersemi] 08/6/2017 18:33

I bet they buy producing assets with exploration upside. Maybe assets from CNPC

[lithological heterogeneities] 08/6/2017 18:31

WORTH REPEATING:

"The proposed transaction is likely to be transformational for the business"

[lithological heterogeneities] 08/6/2017 18:29

Here is another clue as to how big this RTO is:

Delboi, A poster on the lse bb just received this email back from Celicourt, SAVP's PR company (thx Delboi):

TRANSFORMATIONAL

Dear all,

Thank you for registering for the Savannah Petroleum retail call.

In light of today’s potential transaction announcement ( the Company has decided to postpone the retail shareholder call until Savannah is able to comment on the potential transaction in more detail. The proposed transaction is likely to be transformational for the business and the Company is keen to give a proper update to its retail shareholders, whose ongoing support is greatly appreciated, once it is in a position to release further transaction details to the market.

In the meantime investors are able to download an updated version of Savannah Petroleum’s corporate presentation, which has been uploaded to the website. The presentation goes into more detail on the Niger assets and includes a number of slides from yesterday’s Capital Markets Day.

If you have any queries please don’t hesitate to get in touch.

Best,Jimmy
Jimmy Lea
T: [phone]
M: [phone]
CELICOURT
Celicourt Communications Limited
Adam House, 7-10 Adam Street, The Strand, London, WC2N 6AA

[lithological heterogeneities] 08/6/2017 18:23

the clues are there in the RNS:

"potential acquisition of substantially all of their oil and gas assets in the region"
"the transaction consideration will involve a mixture of debt, equity and cash being issued to the vendor."
"the Proposed Transaction would be classified as a reverse takeover"

This is an RTO with a much bigger company.

[bushranger] 08/6/2017 18:15

Granted a reverse takeover may or may not be a way to bypass IPO. But if SAVP are the buyers then by definition SAVP will cease to exist IN NAME as SAVP will merge into and become part of the bought company?

[paleje] 08/6/2017 18:02

bushranger, the norm for for an RTO is for an unlisted co to get into a listed shell and access market funding on the cheap. That clearly isn't the case here.

The other application is when a small co takes over a larger co, I think that's the case here and stock market rules kick in because its substantial potentially company changing.

Usually when a co has got assets, scale, but run out of steam to move them forward for whatever reason. An agile smaller co (SAVP) with some nous comes along and offers to release large co from the 'burden' of managing those assets, more effectively than they could themselves but with large co still getting a fair(ish) deal. That's how I see it anyway fwiw.

[zengas] 08/6/2017 17:56

Dear all,

Thank you for registering for the Savannah Petroleum retail call.

In light of today’s potential transaction announcement ( the Company has decided to postpone the retail shareholder call until Savannah is able to comment on the potential transaction in more detail. The proposed transaction is likely to be transformational for the business and the Company is keen to give a proper update to its retail shareholders, whose ongoing support is greatly appreciated, once it is in a position to release further transaction details to the market.

In the meantime investors are able to download an updated version of Savannah Petroleum’s corporate presentation, which has been uploaded to the website. The presentation goes into more detail on the Niger assets and includes a number of slides from yesterday’s Capital Markets Day.

If you have any queries please don’t hesitate to get in touch.

Best,

Jimmy

Jimmy Lea

T: [phone]

M: [phone]

CELICOURT

Celicourt Communications Limited

Adam House, 7-10 Adam Street, The Strand, London, WC2N 6AA

[bushranger] 08/6/2017 17:49

If SAVP is simply using equity, cash and debt to purchase assets ( be that small or large) in what way is that a reverse take over? Am happy for someone to explain why exactly the transaction is classed as a reverse takeover.

[diversification] 08/6/2017 17:46

Lithologicol, are you also known as munchbox on lse?