Savannah Petroleum (SAVP) told investors on Tuesday that Frontier Oil Limited, Seven Uquo Gas Limited and Accugas Limited have all signed the final long-form documentation for the Seven Energy Transaction.
The companies agreed on the restructuring of ownership interests at the Uquo marginal field and operatorship of the Uquo gas central processing facility.
Seven Uquo Gas is assuming responsibility for all operations (including production) of the gas project at the Uquo marginal field and retain 100% of the revenue from gas sales.
While Frontier will control all oil related activities in the Uquo Field and retain 100% of revenue from oil sales.
Shares in Savannah Petroleum were trading 10% higher following the update
Andrew Knott, CEO of Savannah Petroleum, said: "The signature of the Frontier Transaction documentation represents the achievement of one of the final remaining milestones to be reached as we move towards completion of the Seven Energy Transaction.”
Savannah in the midst of acquiring the Seven Assets and restructuring it’s existing indebtedness.
Mr. Knott added: “The Frontier Transaction is of strategic significance, affording the Enlarged Group increased operational control across the gas value chain and enabling us to maximise value from the Uquo gas field.”
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