Savannah Petroleum announce Intention to Float on the AIM Market of the London Stock Exchange
Savannah Petroleum, the Niger focused oil and gas company, today announces its intention to proceed with an initial public offering (the “IPO” or “Offer”) and to apply for admission of its ordinary shares to trading on the AIM of the London Stock Exchange.
Savannah is involved in the exploration, appraisal and anticipated eventual development and production of conventional oil deposits located in the R1/R2 PSC area, which represents a significant oil and gas exploration licence in Niger, West Africa.
· The primary Eocene oil exploration target in the R1/R2 PSC Area has been estimated by leading geoscience consultancy, CGG Robertson, to contain “Best Estimate” risked gross prospective resource of 573 mmbbls (un-risked: 819 mmbbls), of which 544mm bbls (un-risked: 778mmbbls) are net to the Company
· CGG Robertson also recognised substantial upside potential in the deeper Upper Cretaceous, Lower Cretaceous and Palaeocene horizons
· The R1/R2 PSC Area covers 30.5 per cent. of the original Agadem permit under the CNPC PSC, which has seen an estimated 77 discoveries having been made from 99 exploration wells over the past five years
· Niger has demonstrated its receptiveness to inward investment and to the development of the country’s oil and gas resource, enabling CNPC to deliver first oil for Niger approximately three years after acquisition of the original Agadem permit
· The Company has an experienced management team with extensive developing country oil and gas industry experience and with a broad range of technical, operational and financial skills
· Savannah intends to create value by maintaining a strong focus around the exploration and appraisal of the resource in the R1/R2 PSC Area.
The Company is, among western companies, an early mover into this emerging oil and gas province, which is expected to see significant oil and gas infrastructure build-out over the coming years led by the Asian national oil companies CNPC and CPC Corporation (Taiwan).
Savannah is proposing to raise approximately £29.3 million (approximately US$50.0 million) through the issue of 52.3 million new Ordinary Shares at 56 pence per share. The net proceeds of the placing will principally be used to allow the Company to undertake its planned exploration programme, which includes the acquisition of full tensor gravity and significant seismic surveys over the R1/R2 PSC Area.