Savannah Petroleum Share Discussion Threads

[thomasthetank1] 06/7/2016 09:12

Positive note from Mirabaud out this morning.

Savannah Petroleum (SAVP LN), the Niger-focused explorer, has announced a US$40m placing at 38p/shr. The stock, which was suspended back in January at 24p/shr, is expected to return to trading on Friday, after the company elected to terminate talks with a third party, which would have been classified as a reverse takeover under AIM rules. The proceeds from the placing will be used to fund ground operations, including new 3D seismic over the R3 block in H2 2016 and a multi-well (5+) exploration campaign starting in Q1 2017. In parallel, Savannah said it remains in advanced farm-out talks with several counterparties and hopes to finalise a deal ahead of drilling. It is envisaged that the introduction of a partner would involve a major capital injection and further acceleration of exploration drilling activities. Alongside the placing, Savannah also reported a positive technical update on its licences, including a doubling of risked resources to 2.2bn bbls (from 1.2bn bbls), as well as the relaxation of licences terms (in light of lower oil prices) which are NPV enhancing and allow more time to undertake exploration activities. The placing itself will be completed in two tranches; the first 25% will be issued immediately, with the balance subject to shareholder general meeting approval, which is slated for 22 July. Overall, the financing demonstrates strong investor support for the story and importantly it hands Savannah control of its own destiny with the funds to press ahead with a potentially transformational drilling programme starting in just over six months.

[taudelta1] 06/7/2016 08:07

hooray, excellent placing price, I like New Age but it was difficult to see it working personnel-wise. Resources estimate up too. We are robust enough to go it alone .. GLA

[thomasthetank1] 05/7/2016 17:43

hxxp://www.savannah-petroleum.com/downloads/releases/2016%2007%2005%20Project%20Sun%20Placing%20Announcement%20DRAFT%20vFINAL.pdf

[thomasthetank1] 05/7/2016 17:39

Proposed placing of $40 million / Resumption of trading on AIM

hxxp://www.savannah-petroleum.com/downloads/releases/2016%2007%2005%20Project%20Sun%20Placing%20Announcement%20DRAFT%20vFINAL.pdf

Andrew Knott, CEO of Savannah Petroleum, said:

“Following significant technical and commercial progress across our assets, today's fundraise enables us to recommence ground activities at Agadem.  We plan to acquire 3D seismic over the R3 PSC Area, starting over the coming months, and expect to follow this with the drilling of our first exploration wells in Q1 2017.
 
I would like to again thank the Government of Niger, as well as our existing and new shareholders for their support as we start to explore our asset base and further demonstrate its value.  I look forward to providing updates on our progress in the weeks and months ahead.”

[gray1107] 05/7/2016 16:52

Seems they backed out of the takeover;

5 July 2016

Savannah Petroleum PLC

("Savannah" or the "Company")



Proposed placing of new ordinary shares to raise approximately US$40 million



Resumption of trading on AIM



Savannah Petroleum, the Niger focused oil and gas company, announces today its intention to raise up to US$40 million through an issue of new ordinary shares of £0.001 each ("Ordinary Shares"), at a placing price of 38 pence per Ordinary Share (the "Placing Price") with certain existing and new institutional and other investors via an accelerated book-build. The proceeds are intended to be used to recommence ground operations on the Company's assets in H2 2016 and for general corporate purposes.

...

On completion of the Placing, and following consultation with certain major Shareholders, the Board intends to immediately terminate discussions on the potential transaction and, in the near term, focus on developing and maximising the value of its existing assets. Trading in the Ordinary Shares therefore would be expected to resume as soon as practicable following the announcement of the results of the Placing.

[zengas] 01/7/2016 13:25

You'd think if they were involved with SAVP it would have been mentioned by now. Another week and it will be a full 6 months since news of the RTO/suspension. I don't believe it's New Age (famous last words).

From New Age yesterday.

New Age secures US$425 million Borrowing Facility
London, 30 June 2016 – New Age (African Global Energy) Ltd (‘New Age’), a private African-focussed oil and gas company, has closed a US$425 million senior secured loan facility and has drawn US$350 million on 28 June 2016. The facility, provided by a consortium of five lenders, was led by EIG Global Energy Partners and the Africa Finance Corporation. New Age has recently achieved first oil in a number of new developments, including its Aje field in Nigeria, the Litchendjili and Nene marine fields offshore Congo-Brazzaville and Shewashan in Iraqi-Kurdistan. The proceeds of the facility will be used to further expand production activities in these regions and develop other oil and gas fields in the portfolio.

Commenting today, Steve Lowden, Chief Executive Officer, said:
“We are pleased to have concluded this debt facility with a group of highly respected lenders in a difficult market. Our developments work at low break-even prices, offering good returns even in the prevailing commodity environment, and have attracted commensurate financing. So far in 2016, we have managed to secure some $600million of debt and equity, giving New Age an exceptionally strong balance sheet at the bottom of the commodity cycle. Moreover, this facility ensures the Company is fully funded to deliver sanctioned and planned capex projects through to free cash flow.”

[taudelta1] 01/7/2016 12:59

New Age (African Global Energy) Ltd (‘New Age’), a private African-focussed oil and gas company, has closed a US$425 million senior secured loan facility and has drawn US$350 million on 28 June 2016...... this was posted very recently on New Age web site .. don't know what if anything to make of it! GLA, news has to emerge soon!

[taudelta1] 26/5/2016 08:34

PS .. "updates" (plural) sounds positive; a walk-away would require only one!

[taudelta1] 26/5/2016 08:23

Today's RNS says "Further updates relating to this potential transaction will be provided over the course of the next month."

IMO it is possible the merger prospectus will be accompanied by a fund raise, possibly driven by the other side's desire for cash. Given the trend of the POO, supported by futures for forward months' contracts, there's a motivation to take one's time if my theory is correct. Not long to wait now, GLA ...

[zengas] 29/2/2016 13:07

Malcy again today

Savannah/New Age

Savannah has been suspended for some time now as they are doing a reverse takeover which is scheduled to be announced in April. I have said recently that the indications are that the other company concerned may be New Age African Global Energy run by Steve Lowden. New Age has operations in seven countries mainly in sub-Saharan Africa but not in Niger. Whilst there is no obvious reason for these two companies to merge it has some attractions to both although I would have thought that with such high profile CEO’s, pricing meetings might be fun. New Age has a very serious list of shareholders including Kerogen Capital, Och-Ziff, Vitol and HOPU who may have exerted pressure to get a quote, watch this space…
- See more at:

[zengas] 17/2/2016 09:09

Interesting that seismic work is anticipated to start before the end of June and for both licence areas.

If they're spending on seismic, and we have already 14 drill ready prospects there must be funds coming in for drilling.

BGP Niger is a division of China National Petroleum Corporation.

[taudelta1] 17/2/2016 09:01

wonder what the seismic RNS would have done for the SP?

[taudelta1] 11/1/2016 11:50

thanks Zen, very plausible .. we have a strong II shareholder base, that should ensure that shareholder and management interests are aligned in the transaction, so I'm happy to sleep on my holding until whenever (not that I have choice in the matter!). GL ..

[zengas] 11/1/2016 10:52

I’m speculating but there could be a possible deal with T5 Oil & Gas (unlisted) see presentation link below.

On page 7 their main strategic focus area includes the rift basins of Niger and Chad.

They have on page 14 for September 2015 5 ‘explorers out of favour’ among them Savannah Petroleum along with Africa Oil (Africa oil recently did a major multi million dollar farm out deal with Maersk on 9th November see a-d-v-fn board – So Africa Oil is off limits to T5). Interestingly in that September presentation Savp was below T5s target price.

The acquisition parameters included companies that must be economic at $45/b (Savp $43/b) and assessed using forward market curve at the time (Page 15). Also on page 12 they expect reduced break-even thresholds with “costs of operations drastically decreased” and “Exploration costs expected to drop by over 30% in 2016”

Strategy is reverse takeovers with trapped value and looking for opportunities at the floor of the cycle.

T5 were planning a 2015 listing – they wouldn’t need this if they reversed into Savannah as it is listed saving some money in the process .

Out of 7 board and executive management, 4 are ex tullow, 1 Hailburton and 1 Valiant Petroleum.

T5 have experience with World Bank projects and have one asset (exploration) in Senegal .Tullow execs in 2013 went to Niger to try for the Agadem blocks so Niger is certainly of interest

From Africa Intelligence subscription 28/7/2015 article No 751.

“Tullow Oil"Tullow Oil whose Africa chief, Tim O’Hanlon"Tim O’Hanlon, travelled to Niamey on many occasions in 2013 to talk to the government about CNPC’s relinquished acreage on Agadem, and Bilma and Tenere zones (AEI 708).

T5 presentation

[taudelta1] 11/1/2016 09:05

suspension this morning mysterious, but suspect it will eventually open a lot higher .. could turn out to be in essence a takeover by a non-quoted oiler wanting a London share price on top of acquiring R1,2,3,4 ... GLA ....

[mynameiskhan] 08/1/2016 02:03

This will be another PANR. Now only risk is funding, when they will find partner or raise enough cash to drill

[thomasthetank1] 06/1/2016 08:56

Morning all,

Looks like Panmure Gordon have named Savannah Petroleum on their 2016 Conviction List.

"We add Savannah Petroleum to the Conviction List as a potential play on a farm-out of its highly prospective acreage in Niger in the New Year."

BUY recommendation with a Target Price of 75p on the shares.

[flyingbull] 02/1/2016 19:45

The monthly oil stock competition for January 2016 as well as the 2016 annual oil competition are still open for entries. Deadline for entries for both competitions is midnight this Sunday, 3 January 2016.


Happy and Prosperous New Year to All!!!

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