By Dahlatu Bashir
Savannah Petroleum, the UK listed minnow, has become a full-cycle E&P company following the transformational acquisition of ‘the Seven Assets’, comprising largely the hydrocarbon properties owned by the defunct Seven Energy.
After a drawn out transaction, which began in October 2017, Savannah, with market capitalisation of $260Million, now owns:
- An 80% interest in Seven Uquo Gas Limited (SUGL) which in turn holds a 40% participating interest in the Uquo field located in South East Nigeria (with SUGL assuming responsibility for all operations of the gas project at the Uquo field following the concurrence of Frontier Oil to give up the gas in the field and retain the liquids);
- A 51% interest in the Stubb Creek field located in South East Nigeria (through 100% ownership of Universal Energy Resources Limited); and
- An 80% interest in the Accugas midstream business, comprising the 200MMscf/d Uquo gas processing facility, a c.260km pipeline network and long-term gas sales agreements with downstream customers.
One of Savannah’s partners in the Transaction is African Infrastructure Investment Managers (AIIM) who, as part of the Transaction completion, acquired 20% interests in SUGL and Accugas in return for cash consideration to Savannah of $54Million which it has paid.
The Transaction gives Savannah:· A material producing asset base which is expected to generate significant asset-level free cash flows, “complementing the Company’s prolific Niger exploration and development assets; Exposure to significant upside potential, through both volume and margin uplift, via the utilisation of additional capacity within Accugas’ infrastructure; and A strong platform in the well-established and high potential Nigerian oil and gas industry”, the company avers in a Press release.