Shore Capital acts as Lead Manager to Savannah Petroleum’s proposed $125 million placing
Shore Capital acts as Lead Manager to Savannah Petroleum’s proposed $125 million placing to fund, inter alia, the cash element of the Company’s proposed acquisition of certain Nigerian oil and gas assets of Seven Energy International Limited (“Seven”) (the “Acquisition”), Savannah’s planned drilling campaign in Niger and for general corporate purposes.
A total of 266,462,000 new Ordinary Shares have been placed at a price of 35 pence per share (the “Placing Shares”) (the “Placing Price”). The Placing will be completed in two tranches: the first involving the issue of 27,462,000 Placing Shares (raising gross proceeds of approximately US$12.9 million); and the second tranche involving the issue of 239,000,000 new Ordinary Shares (raising gross proceeds of approximately US$112.1 million), conditional upon, inter alia, the approval by Shareholders to be sought at a general meeting of the Company convened for 8 January 2018.
Andrew Knott, CEO of Savannah Petroleum, said:
“We are extremely pleased to be able to announce the successful results of our Placing, which is a major step towards the completion of the Agreed Transaction. This fund raise was very well supported by both existing and new shareholders, and we thank them for their support. This is a clear endorsement of our strategy to expand into Nigeria and a vote of confidence in our existing Nigerien assets.
Our planned acquisition of Seven’s assets is completely transformational for Savannah. Going forward, we expect the Enlarged Group to be operationally busy and able to pay a dividend from its cash flow generative assets. This transaction also gives us significantly greater operational capability and a strong platform to deliver further value accretive organic and inorganic growth. Our planned drilling campaign in Niger has the potential to deliver material near-term upside, and we are very excited by the growth opportunities presented by the acquired assets.
We look forward to providing our shareholders with a detailed update presentation at our upcoming general meeting, as well as to the commencement of our drilling operations in Niger, and welcome the attendance of our shareholders to hear about the Transaction and Savannah’s plans for 2018 and beyond.”
http://www.savannah-petroleum.com/en/index.php
Shore Capital Service Team:
Corporate Broking & Advisory – Jerry Keen, Toby Gibbs and Mark Percy
Research – Craig Howie