Savannah Petroleum completes milestone Seven Energy Acquisition
The completion of this transaction establishes Savannah as a strong platform in the well-established and high potential Nigerian oil and gas industry.
“Today marks a significant milestone in Savannah's corporate history and elevates the Company to being a leading oil and gas producer in the London market,” said Chairman, Steve Jenkins.
Following a court hearing on Wednesday, administrators were appointed to Seven Energy International Limited.
Yesterday, these administrators effected the transfer of the Seven Assets to group companies controlled by Savannah and African Infrastructure Investment Managers, or AIIM.
Savannah now has an asset base expected to generate significant asset-level free cash flows, complementing its Niger exploration and development assets.
As a result, the group acquired an 80% interest in Seven Uquo Gas Limited ("SUGL"), holding a 40% participating interest in the Uquo field, and 51% interest in the Stubb Creek field, both located in South East Nigeria.
The acquisition also comprises an 80% interest in the Accugas midstream business, comprising the 200 mmscfd Uquo gas processing facility, granting the group exposure to significant upside potential.
Upon completion, AIIM, a partner of Savannah in the transaction, have acquired 20% interests in SUGL and Accugas in return for cash consideration to Savannah of US$54m which has been received.
“The deal transforms Savannah into a full-cycle E&P company in West Africa and marks the start of a very exciting time for us,” said CEO, Andrew Knott.
“Given the recently signed Niger-Benin export pipeline Transportation Convention, we believe this is a very exciting time for Niger's oil and gas industry and we look forward to updating our investors on our plans in the country in due course,” added Mr Jenkins.
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