Savannah Petroleum Share Discussion Threads

[buffythebuffoon] 11/7/2017 15:49

Hi Zengas,

I've not mentioned a scam. I'm just concerned that we would be transformed into a completely different entity with a lot of debt and assets that would be under threat.

I've always questioned whether the deal would be better for AK than us. If he is walking away then he might well do very nicely out of the deal, but for anyone who wants to hold on, there could be a nasty surprise.

Of course we need to see the details, but I didn't invest here to be involved in anything to do with Nigerian assets, nor a large amount of debt unless it related directly to a larger drilling campaign of our Niger assets.

I agree with Ngms' comments about empire building.

We'll see...

Buffy

[zengas] 11/7/2017 15:19

In this context re the distressed SevenEnergy and it possibly being SAVPs target.

UK listed Seplat are TOTALLY based in Nigeria yet have a m/cap of £620m (110p) and $635m of debt. Their working interest production is 20,917 boepd for 1st Qtr of 2017. "Strong performance of the gas business"

Seplat have 45% of 3 of the producing blocks that SevenEnergy hold via 7Es strategic alliance with NPDC where the bulk of their production comes from.

"Seplat is a leading independent oil and natural gas producer in the prolific Niger Delta area of Nigeria".

Looking at Seven Energys' operations they appear to have similar production to Seplat and similar reserves.

From Savp 4 weeks ago "The Company's position in relation to potential transactions remains unchanged, in that Savannah will only conduct a potential transaction(s) that are viewed as value accretive from a risk adjusted return on invested capital perspective."

Looking at Seplats m/cap and debt there is a possibility that if Seven Energy were the target it could be at a premium to the current share price if a new structure is worked out.

[gray1107] 11/7/2017 14:03

The way our RNS is worded indicates we are taking on assets rather than the company itself this is an important distinction. What happens to the debt remains to be seen, hopefully we will get an interim update in response to AEI.

Savannah Petroleum PLC ("Savannah") this afternoon announces that it has entered into a binding exclusivity agreement with a West African focused business (the "Target") in relation to the potential acquisition of substantially all of their oil and gas assets in the region (the "Proposed Transaction"). A detailed transaction structure has also been agreed in outline with the Target.

[thelung] 11/7/2017 12:55

the mirror man rears his ugly head again!

[fsheridan84] 11/7/2017 12:50

Ngms27 stop fear mongering, that is a stupid thing to say until the terms of the deal are clear - regardless of how much debt was involved any deal can still be highly attractive if the price is right and structured in the right way - all depends on the details. Secondly, we all know SAVP operates in Niger, Not Nigeria, but the RNS did state that the assets they were loking at were in West Africa - they have never stated they would not look outside Niger, in fact much of the recent dialogue with the market has been about possible tie ups with the Nigerians.

[ngms27] 11/7/2017 12:21

Empire building rarely succeeds exact for those running the empire. Shareholders as mere mortals would be shafted if SAVP even contemplated taking on $300m of debt

[zengas] 11/7/2017 11:43

How would it be disastrous before no one here knows what the terms of any deal are, yet the comments now are bordering on ridiculous re possible scam before any detail is even out. If it is 7E First of all it's worth looking at who are involved as partners in some of the fields. Fair to say also that Forcados is opened up again to give that 9 month old presentation some balance.

[katylied] 11/7/2017 10:47

A possible `Nigerian Style` scam? It will cost €1.60 to find out...

Who is Savannah Petroleum targeting in the Niger delta?

[ifthecapfits] 11/7/2017 10:44

Not what i'm saying. Deal is with another entity in the region as I understand it rather than country specific. Might have got the wrong end of the stick in terms of what you are saying.

"germany shares a border with france so they are the same country" - isn't that the aim of the EU?

[dorset64] 11/7/2017 10:42

No point whatsoever in speculating until we hear it from the horses mouth. All else is just noise.

[ngms27] 11/7/2017 10:29

It would be totally disastrous if this is the reverse takeover.

[lithological heterogeneities] 11/7/2017 10:27

Oh right, so germany shares a border with france so they are the same country.

[ifthecapfits] 11/7/2017 10:21

They do share a border though - so not beyond the realms of possibility.

[lithological heterogeneities] 11/7/2017 10:12

SAVP websiteNIGER (Not Nigeria!)http://www.savannah-petroleum.com/en/location.php"Savannah is focused around two principal assets, the R1/R2 and R3/R4 PSC areas of the Agadem Rift Basin in South East Niger. "http://www.savannah-petroleum.com/en/niger.phpNIGER key factsNIGER IS A COMPLETELY DIFFERENT AFRICAN COUNTRY TO THE VERY TROUBLED NIGERIA !Can someone please post this on the LSE bb to stop them posting about the WRONG country !

[lithological heterogeneities] 11/7/2017 08:59

BUFFOON,Its lucky. then that SAVP operarates in NIGER, not NIGERIA....which is a completely different country in Africa !

[buffythebuffoon] 11/7/2017 08:07

From Seven Energy's latest presentation:

Backdrop in 2016
• Continued deteriorating economic situation in Nigeria
• Naira devaluation and convertibility
• Continued shutdown of Forcados export terminal
• Gas customer demand build up remains slower than anticipated
• Unicem Cement plant expansion completed
• Heightened security risk

I hope these weren't the good points!

Buffy

[buffythebuffoon] 11/7/2017 07:56

The Niger Delta isn't exactly nirvana. With Seven Energy having $300m of debt and with militant bombings of Shell and Chevrons facilities and Exxon evacuating staff due to bomb threats, I'm not so sure how wise this move will be, if indeed it's them.

Buffy

[zengas] 11/7/2017 07:35

From AEI

Sources say A Knott looking to China to raise finance to buy Seven Energy. They distribute gas in the Niger delta and struggling to honour its debt payments. Company wouldn't comment when contacted by AEI.

Seven Energy -

Net production of 24,500 boepd.

[bushman1] 10/7/2017 21:46

If the cap fits. Do have a look on the other bb. Jessica spoken to one of the posters this last Friday.

[bushman1] 10/7/2017 21:45

If the cap fits. Do have a look on the other bb.

[ifthecapfits] 10/7/2017 13:31

Spookily quite. Normally get some sort of incling as to whom is talking to whom.

[ifthecapfits] 10/7/2017 13:12

Any whispers that anyone is aware of?

[buffythebuffoon] 29/6/2017 16:18

I wonder if the SAVP deals have come about due to the recent agreements signed between Morocco and Nigeria to build an offshore gas pipeline, effectively burying plans to achieve the Trans-Saharan Gas Project which would have brought Nigerian gas to the Mediterranean through Niger and Algeria?

Buffy