Niger – focused Savannah Petroleum has announced it was looking to proceed with an initial public offering (IPO) and to apply for listing on the junior London Stock Exchange, the AIM.
The company, involved in exploration, appraisal and prospective development and production of oil reserves in the Western African country’s R1/R2 production sharing contract (PSC) area, is looking to raise around $50million through the issue of 52.3million new ordinary shares at 56 pence per share.
The net proceeds of the placing will principally be used to allow Savannah to undertake its planned exploration programme, which includes the acquisition of full tensor gravity and significant seismic surveys over the PSC area, the firm said in a statement.
The primary Eocene oil exploration target in the PSC contains a best estimate risked gross prospective resource of 573millbion barrels of oil, of which 544million are net to the company.
Geoscience consultants CGG Robertson also recognised substantial upside potential in the deeper Upper Cretaceous, Lower Cretaceous and Palaeocene horizons in the area.
“Following the signature of the R1/R2 PSC on July 3 2014, listing on AIM marks another significant milestone for Savannah Petroleum and a platform from which we can develop our asset base and create value for our stakeholders,” said Andrew Knott, chief executive of Savannah Petroleum.
“We have been delighted with the interest shown in our business by the institutional investment community. I would like to thank our Pre-IPO investors and new shareholders for making their investments in Savannah.
“The high quality of our investor base is a testament to the exciting opportunity that Savannah presents.”
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