Savannah Energy Plc SPA Signed with PETRONAS (E&P) Overseas Ventures (4844V)
13 Diciembre 2021 - 10:29AM
UK Regulatory
TIDMSAVE
RNS Number : 4844V
Savannah Energy Plc
13 December 2021
13 December 2021
Savannah Energy PLC
("Savannah", the "Company" or the "Group")
Share Purchase Agreement Signed with PETRONAS (E&P) Overseas
Ventures
Savannah Energy PLC, the British independent energy company
focused around the delivery of Projects that Matter in Africa, is
pleased to announce that it has signed a Share Purchase Agreement
("SPA") with PETRONAS (E&P) Overseas Ventures SDN. BHD.
("PETRONAS (E&P) Overseas Ventures") to acquire PETRONAS'
(E&P) Overseas Ventures' entire upstream and midstream asset
portfolio in Chad and Cameroon (the "PETRONAS Assets") for the sum
of US$266 million, subject to working capital and customary
adjustments (the " PETRONAS Acquisition"). The SPA has an economic
effective date of 1 January 2021. It is intended that the PETRONAS
Acquisition will be funded through a mixture of debt and
equity/equity linked financing.
The PETRONAS Acquisition involves Savannah acquiring a target
company holding a 35% interest in the Doba Oil Project and an
effective c. 30% indirect interest in the Chad-Cameroon export
transportation system, comprising a 1,081 km pipeline and the Kome
Kribi 1 floating storage and offloading facility, offshore
Cameroon. For reference, in 2020, the Doba Oil Project produced an
average gross 33.7 Kbopd and the Chad-Cameroon pipeline transported
a gross 129.2 Kbopd.
The PETRONAS Acquisition constitutes a reverse takeover
transaction pursuant to AIM Rule 14 and, accordingly, will be
subject to, inter alia, shareholder approval. The Company intends
to publish an AIM Admission Document, which will contain a notice
of general meeting at which shareholder approval shall be sought,
on or around 17 December 2021, following which the Company would
seek restoration to trading on AIM of its ordinary shares. Full
details on the conditions to completion of the acquisition will be
set out in the AIM Admission Document.
Further information on the PETRONAS Assets[1]
For the 42-month period 1 January 2018 to 30 June 2021, the
target companies have generated cumulative operating cashflows
(before movements in working capital) from the upstream business of
US$267.6m and received cumulative dividends from the midstream
business of US$67.8m.
It should be noted that: (1) the upstream corporate entity being
acquired accounts for the company's earnings on its 35% interest as
a joint arrangement (i.e. reports its proportionate share of the
Doba Oil Project's revenues, costs and cash flows); and (2) the
midstream corporate entity being acquired accounts for the
company's earnings associated with the Chad-Cameroon export
transportation system as an investment in associates (i.e. it
reports cash dividends received in the Statement of Cash Flows and
reports its proportionate share of net income in the Statement of
Comprehensive Income but not, for example, revenues and costs).
The following information is included in accordance with the
disclosure requirements of Schedule Four to The AIM Rules for
Companies:
For the financial year ended 31 December 2020 ("FY2020"), the
target company for the PETRONAS Assets reported audited revenue of
US$170.7 million, a loss after tax of US$277.9 million (which was
net of a US$547.0 million non-cash impairment charge and a US$251.6
million net tax credit), and additionally received cash dividends
of US$18.8 million. As at 30 June 2021, the holding companies
reported unaudited total assets of US$457.2 million and net assets
of US$239.2 million. FY2020 results were significantly impacted by
the prevailing weak macro-economic environment of 2020, driven by
the impact of the COVID-19 pandemic, with a realised average oil
price of US$44.8/bbl.
Further announcements will be made in due course.
+44 (0) 20 3817
Savannah Energy 9844
Andrew Knott, CEO
Nick Beattie, Deputy CFO
Sally Marshak, Head of IR & Communications
+44 (0) 20 7409
Strand Hanson (Nominated Adviser) 3494
James Spinney
Ritchie Balmer
Rob Patrick
finnCap Ltd (Joint Broker)
Christopher Raggett +44 (0) 20 7220
Tim Redfern 0500
Panmure Gordon (UK) Ltd (Joint Broker)
John Prior +44 (0) 20 7886
Hugh Rich 2500
+44 (0) 20 3757
Camarco 4983
Billy Clegg
Owen Roberts
Violet Wilson
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR").
About Savannah Energy:
Savannah Energy PLC is an AIM listed British independent energy
company focused around the delivery of Projects that Matter in
Africa. In Nigeria, the Company has controlling interests in the
cash flow generative Uquo and Stubb Creek oil and gas fields, and
the Accugas midstream business in South East Nigeria, which
provides gas enabling over 10% of Nigeria's thermal power
generation. In Niger, the Company has licence interests covering
approximately 50% of the highly oil prolific Agadem Rift Basin of
South East Niger, where the Company has made five oil discoveries
and seismically identified a large exploration prospect inventory
consisting of 146 exploration targets to be considered for
potential future drilling activity. The Company has announced that
it is in the process of acquiring a portfolio of upstream and
midstream assets in Chad and Cameroon.
Further information on Savannah Energy PLC can be found on the
Company's website: www.savannah-energy.com .
[1] The following financial information was prepared based upon
initial information provided by PETRONAS (E&P) Overseas
Ventures as adjusted in accordance with Savannah's accounting
policies.
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December 13, 2021 11:29 ET (16:29 GMT)
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