Savannah Petroleum has announced its unaudited interim results for the six month period ended 30 June 2017.
First Half Summary
- Safe and successful completion of an 806km2 3D seismic survey over a portion of the R3 PSC Area (‘R3 East’), US$1.2m under budget and ahead of schedule;
- Signature of a rig and other ancillary drilling service contracts with Great Wall Drilling Company Niger SARL (‘GWDC’) for Rig GWDC 215, with a three firm well campaign confirmed and including options for a further six wells which can be exercised individually at Savannah’s discretion;
- Confirmation of the focus of Savannah’s initial drilling campaign to be the R3 PSC Area, with the Bushiya and Amdigh prospects to be the first two wells, followed by either Kunama or Eridal, all located within the R3 East 3D seismic area;
- Identification of six further potential drilling targets, located in the R1 Dinga 3D and R3 Central 2D areas;
- Construction of a logistics camp and pipe yard to be used throughout drilling operations completed, with all equipment for the campaign now mobilised to the camp;
- Announcement in June that the Company had entered into a binding exclusivity agreement with Seven Energy International, a Nigerian focused oil and gas company, in relation to the potential acquisition of substantially all of its oil and gas assets (the ‘Proposed Transaction’);
- If completed on the currently envisaged terms, the Proposed Transaction would be classified as a reverse takeover in accordance with the AIM Rules for Companies; as such the Company’s shares were suspended from trading in June and will remain so until either the publication of an admission document setting out, inter alia, details of the Proposed Transaction or until confirmation is given that these discussions have ceased.
Post Period Summary
- Final pre-stacked time migrated (‘PSTM’) dataset for the R3 East 3D seismic survey received in early July, with excellent data quality and meeting key objectives of enhancing seismic imaging of the Eocene Upper Sokor and Alternances plays, and providing better definition of deeper prospective Cretaceous structures.
- Bushiya drilling operations to commence once the Company’s shares are readmitted to trading.
Andrew Knott, CEO of Savannah, commented:
‘In the first half of 2017, Savannah very much focused on the preparation for our upcoming drilling campaign in Niger, as well as laying the groundwork for the previously announced potential acquisition of substantially all of the assets of Seven Energy. We are looking forward to providing our shareholders and the market with a detailed update on both projects as soon as possible.’
Source: Savannah Petroleum