Savannah Petroleum Share Discussion Threads

[parisv] 15/11/2017 12:48

"This announcement provides the market with a good idea of the size and scope of the deal and how it is to be financed. Although we don’t know quite enough details regarding the full potential or the final costs, it looks to me as if SAVP are buying a substantial portfolio of assets including a midstream business very cheaply indeed."

[honestmarty] 15/11/2017 12:45

wheniamfree

If it passes the time for you until Nurse comes with your lunch, then type away.

[wheniamfree] 15/11/2017 12:39

Of course of course.. good job I typed it then hey?

[honestmarty] 15/11/2017 12:34

No, no whenigrowup, having carried out a thorough and extensive review of your postings, value judgments, decision making and opinions.

I can definitely say, without fear of contradiction, that if it was uttered from you ugly gob then it is without substance.

[parisv] 15/11/2017 12:32

Malcy's Blog:

[wheniamfree] 15/11/2017 12:28

Why’s that dishonestmarty? I thought you told everyone it was 4-5months or do you accept now that you were possibly talking BS and there was some substance to what I wrote?

[honestmarty] 15/11/2017 11:45

Has anyone emailed IR to see if their lips have been loosened?
A date to resume trading should be enquired after.

[zengas] 15/11/2017 11:37

All depends now on what the financing/placing price is. Given the bondholders have taken a cut they will be looking to achieve a decent return second time around and with involvement in the Niger assets.

I can't see any new funding being less than the previous two at 38p each. The overall average of the 3 placings so far has been 42p. I would think they will be keen to keep existing investors on board and back the deal so could be a possibility of a premium.

[jnbrw] 15/11/2017 11:32

first in no doubt, a series of updates from the co. very interesting, complex, and detailed and of course, in stark contrast to the utter drivel posted on this and the other bb. You have to wonder why some posters just dont try to get a life instead of spending so much time posting diatribe

[wheniamfree] 15/11/2017 11:08

It’s on the 7E presentation it’s speculative until confirmed by SAVP in RNS form

[buffythebuffoon] 15/11/2017 11:07

The GM in mid Dec and relisting end of Dec is speculative?

Buffy

[wheniamfree] 15/11/2017 11:05

Buffy we don’t, it’s all speculative.

Wait for the updates in the coming weeks the update is about the proposed transaction the update on drilling and Niger will come.

Can you imagine how big this RNS would be if you updated on absolutely every aspect. The bond holders are locked in, the drilling I expect will happen and be closed to finish (if not completed) by the time the transaction is due for completion.

Digest the RNS there is a lot to take in, too many throwing toys out of the plan without realising what structure is potentially about to come in. I for one applaud AK, it’s taken longer and been frustrating to say the least but looking st the deal the BHs are certainly taking s bth on this one and perhaps NPDC will also if they accept the $200m for the SAA.

[buffythebuffoon] 15/11/2017 10:54

Honestmarty,

Then why won’t he give us the effing information.

Why do we have to learn about dates from a Seven presentation?

Buffy

[honestmarty] 15/11/2017 10:50

Can we really make a judgment here until we have a lot more information?

They have announced an equity raise, will it be at a premium?

Will they raise additional funds for Niger drilling?

Bond-holders are accepting a significant equity share, they would not do this unless the Niger funding was addressed?

What happened to our great relationship with NPDC? Are we getting the SAA or not?

What happened to the updated CPR which very clearly is vitally important now in term of the relist price?

I still think a lot of this is actually almost sorted and just being drip feed into the market.

[buffythebuffoon] 15/11/2017 10:17

lh,

Not that I believed it for a second, but I thought you weren’t posting until next year?

As for the late Dec listing. How does that tally with the six month expiry on Dec 8th?

Are we relisting via a new application as SAVP, and will the RTO take us in to the Main Market, or will we still be too small.

The big prize hasn’t been secured, and clearly the dispute between Seven and NPDC over unpaid past costs by Seven, which led to the purported termination of the SAA in January, is what SAVP have been waiting for. While we still have an option, we’ve clearly decided to wait no longer.

So we’ve picked up a few assets on the cheap, but nothing transformative for all that negotiating time.

The main question is ARE WE DRILLING OR NOT, AND WHEN?!

Buffy

[lithological heterogeneities] 15/11/2017 10:03

Listing before Christmas is good news if correct.So why on Earth did they say: "Next steps:Implementation of the AgreedTransaction is expected to take around 4-5 months".I can only conclude from this poorly worded RNS that they ARE going to re-list and drill BEFORE the RTO is completed which is completely the opposite of what they kept saying in emails that were often posted on the other BB saying they would NOT re-list until the RTO is complete !Fingers crossed for listing before Christmas and not in "around 4-5 months" as also stated in the RNS.

[dorset64] 15/11/2017 09:51

'We expect trading in the shares to commence by the year-end, subject to publication of an admission document'.....

[thomasthetank1] 15/11/2017 09:35

All - please see below for Mirabaud's comment on this morning's Savannah announcement.

Savannah Petroleum (SAVP LN) has announced an update on its proposed purchase of certain of Seven Energy£s oil and gas assets providing the market with the first indication of what the deal looks like. Following lengthy negotiations with Seven£s creditors, an agreement has been reached to acquire Seven£s integrated gas assets in the Niger Delta, comprising stakes in two marginal fields (40% Uquo and 32% Stubb Creek) and an interest in Accugas, Seven£s gas processing and pipeline arm. These assets account for roughly half of Seven£s business in production terms. The remainder £ consisting of a Strategic Alliance Agreement (SAA) with NPDC over OMLs 4, 38 and 41 £ will not be part of the proposed deal. However, SAVP will retain the right to acquire the SAA pending settlement of a dispute between Seven and NPDC over unpaid past costs by Seven which led to the purported termination of the SAA in January. Seven estimates that the net investment required to unlock these assets is likely to be up to US$200m, including working capital, although the group is yet to reach agreement with NPDC on this.

SAVP has entered into lock-up agreements with Seven£s key bondholders and other creditors, which will see SAVP pay an aggregate consideration of US$242m for the upstream gas assets £ US$75m cash, US$82m SAVP shares and US$85m in assumed debt. These assets currently produce ~12 kboepd net to Seven and contain 99 mmboe of 2P reserves, implying a purchase price of US$20k per flowing barrel and US$2.4 per 2P boe. To put this in context, UK-listed E&Ps operating in Africa trade, on average, at US$47k per flowing barrel and US$12 per 2P boe. On top of the upstream assets, SAVP is also acquiring a strategic interest in Accugas which handles oil and gas production from the Uquo and Stubb Creek fields. Although the terms are yet to be unveiled in full, we note that Accugas may be acquired alongside third party investors which would reduce SAVP's midstream exposure.

In terms of next steps, SAVP will now move into the implementation phase. This will involve: (1) completion of an equity raise to finance the acquisition (amount yet to be disclosed), (2) signing of implementation agreements with all stakeholders, and (3) usual Government and regulatory consents which could take 4-5 months to obtain. During this period, the company will also extend a working capital facility to Seven of US$20m £ structured as a super senior secured loan £ most of which (US$15m) will be released upon signature of an implementation agreement (and funded from the equity raise). So in summary, there is plenty more to do, but the difficult task of thrashing out terms with Seven£s creditors is now effectively done and the rest should follow. We expect trading in the shares to commence by the year-end, subject to publication of an admission document and completion of the equity placing.

[parisv] 15/11/2017 09:13

Seven Energy presentation -

Proactive article
[...]

[zengas] 15/11/2017 09:08

Todays bondholder presentation shows amongst other things

Post Restructure:
Savp owning subsiduaries - Niger company and seperate company for Nigeria. Nigeria may attract 3rd party co-investor.

Agreed Transaction Overview and expected timelines -

Mid December notice of SAVP general meeting.
Late December recommencement of trading in Savps existing shares.
Jan 2018 Scheme of arrangement/placing shares to be issued.
End Q1 Closing of deal.

Access to gas reserves and resources of 1.2 Tcf.
Access to oil and gas reserves of 153 mmboe 2P under SAA, Stubb Creek and Anambra Basin.
Contingent and Propsective resources aggregating 400 BCF in the Anaambra Basin.
October 2017 business plan Nigeria - Oil /Gas revenue for 2017 $100m (2018 $195m, 2019 $256m forecast)

[divmad] 15/11/2017 09:04

So, excluding the SAA asset, and buying back bonds at a 60% discount, what is the strategic benefit of this transaction to SAVP shareholders? Is it simply access to a Nigerian oil pipeline?

[parisv] 15/11/2017 08:58

Seven Energy's RNS here:

[wheniamfree] 15/11/2017 08:57

Honestmarty care to elaborate your point?

I can name you another company that completed it’s transaction later and returned to market prior to full agreement.

The RNS also stated that it would list on either the RTO completion OR a readmisison document which has been stated as being worked on with an update in the coming weeks.

So we’re you ever called billy bullsh1t at school?

[parisv] 15/11/2017 08:56

so it looks like SAVP will be back before Dec 8th as all they need is the aim admission doc to be finalised. the $200m financing for SAA won't be part of the deal and will take 4-5 months to complete which means they can relist. SAVP are paying 140m for 318m worth of debt which is a very good deal. Well done AK.

[zengas] 15/11/2017 08:34

First of all i'm fully positive on this strategy.

A lot of detail but will take 4-5 months for this to complete but at least details now out.

3 Seplat OMLs for now not included but still under discussion and would take some $200m to secure that or about £150m.

For now Net production being purchased looks to be around 5200 boepd gas and 900 bopd oil (6,100 boepd.)
$318.2m of the debt associated with this being bought for $87.5m cash and $52.5m shares being issued to note holders (total $140m).

If $52.5m/£40m shares issued at 38p to bondholders may mean circa 100m shares to them.

There will be further financing to cover that - so if an all share issue could see £67m of new shares at 38p = 170m shares.

274m shares currently + possible issue (if around 40p) of 270m shares = 545m shares and a debt free producing company.

If the shares are 40p that only values the company at £220m on 6100 boepd so would be significant upside to be had from Niger imo.

Will that throw enough cash for drilling ?
Likely they could have a debt facility for drilling against reserves (as yet not stipulated). I think though that Uquo has around 100 mmboe gas reserves so could be about 40 mmboe net to Savp from Uquo. (Oil i don't know ). A 2013 Miocene well there in 2013 tested at 35 mmcf/day (6,000 boepd).

If this pans out around the 40p level/£220m valuation level for 6100 boepd and above reserves prior to Niger, it would be a pretty good deal imo.