Savannah Energy (SAVE) , an Africa-focused oil and gas company, issued a statement on its ongoing acquisition of PETRONAS International's energy business in South Sudan.
Savannah said it continued to advance workstreams, including receipt of in-country approvals, required to complete the acquisition. In December 2022, Savannah entered a share purchase agreement with PETRONAS to buy its entire oil and gas business in South Sudan through the acquisition of Petronas Carigali Nile for up to US$1.25bn.
As the transaction constitutes a reverse takeover pursuant to AIM Rule 14, it is subject to shareholder approval. Trading in Savannah's shares has been suspended on AIM since December 12, 2022 pending publication of an AIM admission document setting out the details of the transaction. Savannah advised today that it had been given a revised cancellation date of April 2, 2024 while work was continuing on the acquisition. Once the AIM admission document is published, shares will be restored to trading on AIM.
The transaction is expected to be financed through a combination of the enlarged group's cash resources and debt, and is conditional upon approval by the Government of South Sudan, approval by Savannah's shareholders, and re-admission to trading on AIM taking effect.
The acquisition would result in Savannah acquiring PCNL's interests in three joint operating companies (JOCs), which operate Block 3/7 (40% interest), Block 1/2/4 (30% interest), and Block 5A (67.9% interest) in South Sudan. PETRONAS' assets comprise of interests in 64 producing fields, with first production having commenced in 1999. In 2021, the assets produced an average gross 153.2 Kbopd. Major partners in the JOCs include CNPC, Sinopec, ONGC and Nilepet, the national oil company of South Sudan.
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