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Wednesday, July 30, 2014
Savannah Petroleum plans to proceed with an IPO and to apply for admission of its ordinary shares to trading on the AIM of the LSE. Savannah is proposing to raise approximately £29.3 million through the issue of 52.3 million new Ordinary Shares at 56 pence per share.
The company holds stakes in the R1/R2 PSC Area in Niger. The net proceeds of the placing will principally be used to allow the company to undertake its planned exploration program, which includes the acquisition of full tensor gravity and significant seismic surveys over its acreage in Niger.
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 million barrels, of which 544 million barrels are net to the company. Savannah revealed in a press release that CGG Robertson also recognized substantial upside potential in the deeper Upper Cretaceous, Lower Cretaceous and Palaeocene horizons.
The R1/R2 PSC Area covers 30.5% 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
Commenting, Steve Jenkins chairman of Savannah Petroleum, said: “Savannah Petroleum is a company with a great asset and an experienced board and management team, and I am excited to be appointed Chairman. The foundations for future growth are in place, and with a busy work program focused on the exploration and appraisal of the company’s PSC area, Savannah has a real opportunity to unlock and realize substantial value for Niger and shareholders alike.”
Andrew Knott, CEO of the company said: “Following the signature of the R1/R2 PSC on July 3 2014, listing on AIM marks another significant milestone for Savannah Petroleum and a platform from which we can develop our asset base and create value for our stakeholders. We have been delighted with the interest shown in our business by the institutional investment community. I would like to thank our Pre-IPO investors and new shareholders for making their investments in Savannah. The high quality of our investor base is a testament to the exciting opportunity that Savannah presents. I would also like to thank our advisory banks and Burness Paull for their support over the last year, without whom we would not be in this position today.”
Mirabaud Securities LLP acted as Global Co-ordinator and Joint Bookrunner, Renaissance Capital Limited acted as Joint Bookrunner, FirstEnergy Capital LLP acted as Joint Lead Manager and Ladenburg Thalmann & Co. Inc. acted as U.S. Placing Agent to the Placing and Strand Hanson Limited acted as Financial and Nominated Adviser in connection with the Placing and Admission.
Capitalized terms used in this announcement carry the same meaning as that ascribed to them in the AIM Admission Document dated July 29, unless the context requires otherwise.
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