Savannah Petroleum has suspended its shares from the Alternative Investment Market.
The Niger-focused oil company has entered into non-binding heads of terms regarding a potential transaction which, if completed on the currently proposed terms, would be classified as a reverse takeover under the AIM rules for companies.
The company’s ordinary shares will remain suspended from trading on AIM until such time as either an admission document setting out details of the proposed transaction is published, which would be no earlier than April 2016, or confirmation is given that the transaction is not proceeding.
Savannah Petroleum raised $36million after placing more than 61million shares at a value of 38 pence each last July after signing a production sharing contract with the Niger government for the R3/R4 license area.
The deal involved a $28m payment relating to a R3/R4 PSC signature bonus to Niger.
The company said it had hoped to pursue an “aggressive” development programme in the African country.