Niger : Savannah to move to value creative stage in Agadem rift basin petroleum assets

Savannah Petroleum PLC, with roughly 13655 km2 acreage of production sharing contract in Agadem rift basin, is in good financial position with 40 million US$ to fast track exploration to a value creative stage in its assets .

The British gas and oil company in a release, on July 7, said a successfully completion of placing proposal to that effect, together with share offer, to raise 40 million US$.

It underscored that a total of 79,835,682 new ordinary shares have been conditionally placed while its directors and senior management announced to subscribe for an aggregate 1,444,318 new ordinary shares.

The London listed petroleum company also revealed the placing and subscription shares represent approximately 42 % of the company’s existing issued ordinary share capital.

According to Andrew Knott, CEO of Savannah, fund raising was oversubscribed and has been extremely well supported by both existing and new shareholders.

“This is a strong endorsement of our strategy and ensures we are funded to move the assets to the next level of value creation”, he commented

It is now obvious for Mr. Knott to now look forward to imminent recommencement of ground operations with the 3D seismic programme at bloc R3 which covers together with bloc R4 the 5249 km2 R3/R4 production sharing contract areas.

These, he said, “will in turn help us maximize the chances of a successful drilling campaign in 2017”, emphasizing that it is an “extremely exciting time” in the Savannah story.

Placing shares are expected to be issued in two tranches, the second of which is conditional, inter alia, on the approval of Savannah shareholders.

In the first tranche, 19,334,000 new ordinary shares will be issued and admitted to trading on 11 July 2016, for gross proceeds of approximately 9.5 million US$, while the second will occur on or around 26 July 2016 with 60,501,682 new ordinary shares.

The main activities of Savannah are focused around the two principal production sharing contract assets R1/R2 and R3/R4. The concerned blocks cover roughly 13,655km2 areas in the Agadem Rift Basin in South East Niger. (Olivier K. Tovor)