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Monday, June 3, 2019
Savannah Petroleum provided a corporate and operational update as well as an update on the Seven Energy Transaction. The company said that the Universal Energy Resources Limited (UERL) buy out, as discussed in its September 20, 2018 release has been completed. The Seven Energy Group now owns 100% of UERL, the company which holds a 51% operated participating interest in the Stubb Creek field in Nigeria.
Good progress continues to be made on other Transaction workstreams, including the expected granting of Ministerial Consent, and agreeing and finalizing long-form documentation in relation to the AIIM Investments, the Accugas debt restructuring and the Frontier Swap. The Company continues to expect that the Transaction will complete during Q2 2019, which will be followed in due course by the publication of a Supplemental Admission Document.
Prior to the completion of the Seven Energy Transaction and the commencement of production from the Niger early production scheme (EPS), Savannah remains in the pre-revenue stage of development and at a point where the board believes it is inappropriate to consider the payment of a dividend. Following the expected completion of the Seven Energy Transaction, Savannah expects to consider the commencement of shareholder returns in respect of 2019.
Average gross daily production from the Seven assets for the 2018 and 2019 year to date periods is shown in the table below. Gas from the Uquo field is sold via Accugas to three principal customers through GSA, with gross take-or-pay volumes under the GSAs set at 152 Mmscf/d.
Production during 2018 was impacted by an ongoing maintenance program at the Calabar National Integrated Power Plant, one of Accugas’ three principal gas customers. The maintenance program is now complete and production is expected to continue to ramp up over the course of 2019.
In Niger Savannah expects to proceed with its planned Amdigh-1 well test in H2 2019. Its previously announced Pre-Stack Depth Migration (PSDM) seismic processing project on R3 East is now complete. The PSDM dataset shows an overall improvement in seismic imaging at all levels vs. the existing Pre-Stack Time Migration (PSTM) dataset. The interpretation phase, which is planned to start this month, will assist in confirming drilling targets to support the proposed EPS as well as identifying additional prospectivity in the deeper Yogou and Donga Cretaceous intervals.
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