8th Aug 2018 12:35
LONDON (Alliance News) - Savannah Petroleum PLC said Wednesday it has signed a memorandum of understanding with the Republic of Niger for an early production scheme at the Agadem Rift basin.
According to the company, the MOU affirms both parties commitment to utilising crude oil resources from Savannah's recent discovery in south-east Niger.
The early production scheme is intended to be "domestic focused" with oil produced expected to be sold at the Societe de Raffinage de Zinder refinery - about 463 kilometres from the third party owned Agadem-Zinder crude oil transportation pipeline.
Under the MOU, the government of Niger will facilitate a deal between Savannah's Niger subsidiary and the third party to allow infrastructure access for Savannah Niger.
Chief Executive Andrew Knott said: "Our Niger project team is highly focused around the delivery of: near-term production and cashflows from existing and future discoveries in the R3 area; and further material reserve adds through our ongoing exploration and appraisal drilling program.
"The signature of the MOU provides a clear pathway in relation to our first objective and is a major milestone. In relation to the second objective, Savannah benefits from the large bank of drill-ready exploration prospects that our technical team has mapped within our PSC areas. We believe the vast majority of these prospects have similar risk profiles to the ones we have already successfully drilled, and we therefore look forward with confidence to the results of the wells still to come in the campaign," he added.
Shares in Savannah Petroleum were down 1.2% at 26.69 pence each Wednesday.
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