News Column

Savannah Petroleum Plans AIM Flotation

July 29, 2014

Tom McIvor

LONDON (Alliance News) - Niger-focused oil and gas company Savannah Petroleum PLC Tuesday said it is planning to carry out an initial public offering and to apply for admission of its ordinary shares to trading on the AIM of the London Stock Exchange.

The company, which is involved in the exploration, appraisal and anticipated eventual development and production of conventional oil deposits located in the R1/R2 PSC licence area, said it is planning to raise roughly GBP29.3 million through the issuance of 52.3 million shares at 56 pence per share.

Savannah Petroleum said it plans to use the cash it raises to undertake a planned exploration programme, which includes the acquisition of full tensor gravity and significant seismic surveys over the R1/R2 PSC Area.

The primary Eocene oil exploration target at the R1/R2 PSC Area has been estimated by consultants CGG Robertson to contain best estimate prospective resources of 573 million barrels, with 544 million barrels available to the company.

The company said that CGG Robertson has also seen substantial upside potential in the deeper Upper Cretaceous, Lower Cretaceous and Palaeocene horizons.

"The foundations for future growth are in place, and with a busy work programme focused on the exploration and appraisal of the company's PSC area, Savannah has a real opportunity to unlock and realise substantial value for Niger and shareholders alike," Chairman Steve Jenkins said in a statement.

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Source: Alliance News

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