31st Oct 2018 12:49
LONDON (Alliance News) - Savannah Petroleum PLC said Wednesday it is "seeking certain further amendments" to its transaction with Seven Energy International Ltd.
The AIM-listed oil & gas company focused on Niger and Nigeria said the amendments are in Savannah's "immediate commercial interests" and are expected to "significantly enhance" its competitive position in Nigeria.
Finalisation of the implementation agreement will now take place once these amendments have been agreed.
The company expects the transaction will be completed in the fourth quarter of 2018.
Earlier in October, the company said the Nigerian government is "fully satisfied" with its proposed acquisition of assets from Seven Energy.
Savannah Petroleum announced the takeover of Seven Energy's assets last November. Savannah will acquire all of Seven Energy's valuable assets for USD87.5 million in cash and GBP52.5 million in shares as part of the transaction.
In September, Savannah Petroleum signed a gas-for-oil swap agreement with Seven Uquo Gas Ltd and Accugas Ltd, subsidiaries of Seven Energy.
The company signed a memorandum of understanding with the two companies to conduct a gas-for-oil swap at the Uquo field in south east Nigeria.
Seven Uquo's rights to gas production from the field will increase to 100% from 88% and Savannah's ownership of the oil project will be 100%.
In addition, Savannah Petroleum also has agreed to acquire the 38% minority shareholders' interest in Universal Energy Resources Ltd, raising its Stubb Creek field interest to 51% from approximately 32%.
Shares in Savannah Petroleum were up 0.3% at 31.10 pence each on Wednesday.
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SAVP.L