Business
Update regarding the proposed acquisition
Update regarding the proposed acquisition.
About this update from Savannah Energy Plc
[{"type":"text","content":"\n \nRNS Number : 3116Y Savannah Petroleum PLC 04 December 2017 \n\nNOT FOR RELEASE OR DISTRIBUTION OR PUBLICATION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND OR SINGAPORE\n \n4 December 2017\nSavannah Petroleum PLC\n(\"Savannah\" or the \"Company\")\n \nUpdate regarding the proposed acquisition of certain of the Nigerian oil and gas assets of Seven Energy International Limited (\"Seven\") (the \"Agreed Transaction\")\nProposed placing of new ordinary shares to raise up to US$250m\nSavannah is pleased to announce an update on the Agreed Transaction, following the announcement of 15 November 2017 detailing signature of the Lock-up Agreement with, inter alia, Seven, Seven Energy Finance Limited (\"SEFL\"), certain other subsidiaries of Seven (together, the \"Seven Group\") and certain of the creditors of the Seven Group. \nAs part of the Agreed Transaction, Savannah is also announcing its intention to raise up to US$250m through an issue of new ordinary shares of £0.001 each (\"Ordinary Shares\") by way of a placing (the \"Placing\") with institutional investors (the \"Placees\") to fund, inter alia, the cash consideration of the Agreed Transaction and expansion of the Company's planned drilling campaign in Niger. Readmission of the Company's Ordinary Shares to trading is expected in December 2017, with completion of the Placing taking place in January 2018, and completion of the Agreed Transaction by the end of Q1 2018.\nHighlights\nThe Agreed Transaction is expected to see Savannah acquire an interest in two onshore producing oil and gas fields, Uquo and Stubb Creek, as well as a proposed 20 per cent. interest in the Accugas Limited (\"Accugas\") midstream business for an aggregate consideration and acquisition enterprise value (\"EV\") of c.US$270m. This represents an acquisition cost of US$2.9/2P boe and an overall acquisition EV/capital invested in the assets to be acquired to date of c.35 per cent. \n· Proposed acquisition of Seven Uquo Gas Limited (\"SUGL\"), which holds a 40 per cent. participating interest in the Uquo Field, and a 62.5 per cent. interest in Universal Energy Resources Limited (\"UERL\"), which holds a 51 per cent. participating interest in the Stubb Creek Field and a proposed 20 per ...