Savannah Petroleum Share Discussion Threads

[gersemi] 13/7/2017 12:47

Looks to me like SAVP picking up cheap assets from a distressed company. It could prove an enticing deal

[westmoreland lad] 13/7/2017 12:46

Tight fisted Scotsmen don't throw money away ! Lets wait and see the deal.

[thegreatgeraldo] 13/7/2017 12:42

Hmmmm......

hxxp://www.sevenenergy.com/media/news-and-announcements/2017/10-04-2017

[gray1107] 13/7/2017 12:38

He needs to walk away again if we're not getting total firesale prices. One positive is with the right deal there is the potential to significantly accelerate Niger exploration using revenue from ramped up Gas production.

[bushman1] 13/7/2017 12:30

Do read the posts over on the ' other ' bb. Totally different reaction to this news. Well bullish. Looks to be a huge game changer for SAVP if the deal is structured correctly which folk on that board believe AK and the BoD will certainly accomplish.

[ifthecapfits] 13/7/2017 12:13

Could be they take on the assets and not the debt.

[dorset64] 13/7/2017 12:10

Soooo, if we are to be buying Seven Energy et al, I would be one of the first to the exit door upon re-listing.

If however, we are in 'agreement in relation to the potential acquisition of substantially all of their oil and gas assets', as opposed to the company as a whole, this could become an interesting one by where I would possibly not sale 100% of my holding but, say 50%.

Unless they have been offered these assets at pretty much less than zero, why would you even contemplate taking on the problems they have in that region. Concentrate on what you have, get it into a profitable operation and then, only then start to look elsewhere but now?

[ifthecapfits] 13/7/2017 11:46

some useful more recent stuff in here too.

[ifthecapfits] 13/7/2017 11:37

background info on the target.

[ngms27] 13/7/2017 11:17

This totally and utterly wipes out any significant impact of the upcoming Niger exploration.This isn't the Company I became an owner of.I really hope a deal cannot be done and we get back to where we were rather than Empire building

[gersemi] 13/7/2017 11:04

'Savannah confirms that the Target is Seven Energy International Limited, a Nigerian focused oil and gas company. Savannah will provide further updates in due course and continues to seek to complete the Proposed Transaction on an accelerated timescale.'

[buffythebuffoon] 12/7/2017 07:20

I really hope that was a cut and paste... 😏

Buffy

[bushman1] 12/7/2017 01:17

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.



West Africa : includes 18 countries: Benin, Burkina Faso, the island nation of Cape Verde, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali, Mauritania, Niger, Nigeria, the island of Saint Helena, Senegal, Sierra Leone, São Tomé and Príncipe and Togo.

[buffythebuffoon] 11/7/2017 22:22

Several people have opined that we will come back at a premium.

Aside from the fact I don't see this as at all relevant, at a premium to what? The suspension price, which was 10p or so below the share price not long before?

I didn't buy the shares to make a few pence, I bought them because I saw a serious multibagger. I accepted that we would likely raise a large sum to accelerate the drilling schedule, but I knew we had a large number of prospects to drill. I wasn't in it just for the '3+6'.

Now, if it is indeed Seven Energy, we'll be much bigger with a large amount of debt. While we'll have production assets, have people looked at the production profile and the payments for the production? Have they looked at the militant activity, that has a history of being resolved, only to begin again by the same group, or a new faction?

I spent a fair bit of time looking at the political situation in Niger before investing, I would have spent zero time if it was the Niger Delta or any other part of Nigeria.

I think this is about AK leveraging his £4m invested and taking the profit and running. He's obviously been talking to NNPC, so maybe he has something else lined up. He admitted he saw himself as a serial entrepreneur.

Frosted Cheerios anyone?

Buffy

[diversification] 11/7/2017 21:32

Thats the big questions we are all desperate to find out. Nice research on Seplat by the way Zengas.

Ultimately all hinges on the terms of this deal, in terms of return on investment in Niger in the event of success.

I can understand why people have their reservations when it comes to Nigeria. It's been well published that production reached a three decade low due to the millitant attacks, but things look like they are back on track. As such we assume these Nigerian assets are available at a significant discount to NAV.

I am extremely encouraged by the EBITDA associated with Seven Energy and the company has significantly reduced its operational expenses due to disruption.

Those that have discussed their concerns associated with high levels of debt are right to have their reservations IMO as its these interest payments that have crippled Seven Energy.

My confidence in our board and their desire to complete deals on a value accretive basis makes me even more confident that we will come back at a premium.

Until we know the facts though it still all remains speculative. I'm not 100% convinced that the target is Seven Energy yet and if it is I don't think they will be after the non producing assets.

If it wasn't for Jimmy Lea saying 'no comment' regarding Seven Energy, this compared to correcting AIE on its last incorrect report I would have said that this isn't the target. (I just seems too big, Seven Energy total indebtness over $800m).

I have a funny feeling we will get an update tomorrow, call it gut feeling!!

[zengas] 11/7/2017 21:01

Subject to it being 7E, What price a restructured entity and Savp coming back from suspension with the possibility of a premium to its current closing price ?

What if a farmin partner/strategic investor is also linked to having an interest in these wider assets ?

[gray1107] 11/7/2017 20:29

Sure but what % gain do you expect on a Niger hit in a £500m company vs a £75m one...

[diversification] 11/7/2017 20:00

I really don't know what you guys are worrying about. This share will come back at a premium to suspended price irrespective of RTO outcome.

Imo

[lithological heterogeneities] 11/7/2017 19:38

div,

yes, I tried to sell as they just announced a 2 month delay after repeated promises of JV by end of Jun but as we know they suspended one day later so now locked in for the 2 month delay period so the problem went away due to the suspension

[buffythebuffoon] 11/7/2017 19:12

Thanks diversification.

It's good to know we are able to sell when SAVP relists. We didn't realise.

Buffy

[diversification] 11/7/2017 19:09

Lihtolotical, post 606 suggests you were trying to sell this even before the RTO announcement. You weren't happy with Niger, let alone Nigeria.

I could continue, some of the posts on here today have made for great entertainment, everyone who is not happy with the non disclosed deal which is yet to be confirmed can sell when we re-list.

[lithological heterogeneities] 11/7/2017 18:10

I want NOTHING to do with any Nigerian assets.
It will be a disaster.
Nigeria is an exceptionally bad country for oil & gas companies.

[ngms27] 11/7/2017 17:55

The problem is any such deal materially dilutes the Niger exploration which I suspect is why 99% of us are here.Makes it a completely different beast, so much so I'd prefer Tullow