UK based Savannah Petroleum has revealed that plans to acquire Nigeria’s Seven Energy Assets will be completed by before the end of the year.
In a press release signed by the Savannah Energy CEO, Andrew Knott, noted that the final approval is coming after the submission of a revised terms on the Transaction detailing the additional acquisitions, as announced by the Company on 20 September 2018, to the Nigerian Department of Petroleum Resources (DPR).
Noting that the DPR has informed the company of its completion on due diligence in relation to acquisition, and it is fully satisfied with, the transaction.
Knott further revealed that the application for Ministerial Consent for the Transaction is currently being processed with the DPR for further transmission to the office of the Minister of State for Petroleum Resources for final approval.
Savannah Petroleum had last year completed a $125m fund-raise to help it fund its proposed acquisitions, drilling campaign in Nigeria and for general corporate purposes.
The company placed a 266,462,000 new ordinary shares at a price of 35p per share in two tranches. Part of the proceeds will support its planned reverse takeover of certain oil and gas assets in Nigeria held by Seven Energy International Limited.
Seven Energy ran into troubled waters after several defaults on its debt-servicing obligations, the company decided to entered into a transaction for a comprehensive capital restructuring, part of which is to sell most of its assets.
Seven Energy is an indigenous company established in 2004, with headquarters in Lagos and London and wholly-owned midstream company, Accugas. The company’s portfolio consists of a diversified portfolio of onshore oil and gas interest with substantial reserves and resources base in southeast and Niger Delta with three highly prospective assets in the Anambra Basin.