Savannah Petroleum PLC Signature of MOU Between Niger and Nigeria (6317V)
25 July 2018 - 1:00AM
UK Regulatory
TIDMSAVP
RNS Number : 6317V
Savannah Petroleum PLC
24 July 2018
24 July 2018
Savannah Petroleum PLC
("Savannah" or "the Company")
Signature of Memorandum of Understanding Between Niger and
Nigeria
Development of Agadem Rift Basin crude oil export solution
Savannah Petroleum PLC, the British independent oil and gas
company focused around oil and gas activities in Niger and Nigeria,
is pleased to note the signature earlier today of a Memorandum of
Understanding (the "MOU") between the Governments of the Republic
of Niger and the Federal Republic of Nigeria in relation to the
export of crude oil from the Agadem Rift Basin ("ARB") of South
East Niger to Nigeria (the "Niger-Nigeria Export Project").
The MOU was signed by the Minister of Petroleum of Niger, Mr.
Foumakoye Gado, and the Minister of State for Petroleum Resources
of Nigeria, Dr. Emmanuel Ibe Kachikwu, and witnessed by President
Mahamadou Issoufou of Niger and President Muhammadu Buhari of
Nigeria. Savannah, China National Petroleum Corporation ("CNPC")
and various other project stakeholders and dignitaries were also in
attendance.
The MOU envisages the construction of an export pipeline from
the ARB to a refinery in Katsina State, Northern Nigeria. The
Steering and Technical Committees in relation to the project were
also inaugurated at today's ceremony.
The MOU follows the upstream approval granted by the Republic of
Niger to CNPC earlier this year in relation to the Agadem PSC
Exclusive Exploitation Area 3, the entire production from which is
expected to be exported from Niger using newbuild infrastructure to
Northern Nigeria or though export terminals in either Benin or
Cameroon.
Andrew Knott, CEO of Savannah Petroleum, said:
"We expect the Niger-Nigeria Export Project to provide one of
the potential routes to market for Savannah's existing and future
discoveries in Niger. The degree of high level support for the
project from both countries is clear, as is the significant
positive economic impact it has the potential to deliver. We expect
significant progress to be made over the course of the next six
months.
This project compliments our plans to initiate an early
production system for the R3 East area of our R3/R4 PSC in the ARB,
which we hope will enable early monetisation of our recent
discoveries."
For further information contact:
Savannah Petroleum +44 (0) 20 3817 9844
Andrew Knott, CEO
Isatou Semega-Janneh, CFO
Jessica Ross, VP Corporate Affairs
Strand Hanson (Nominated Adviser) +44 (0) 20 7409 3494
Rory Murphy
James Spinney
Ritchie Balmer
Mirabaud (Joint Broker) +44 (0) 20 7878 3362
Peter Krens
Ed Haig-Thomas
Hannam & Partners (Joint Broker) +44 (0) 20 7907 8500
Neil Passmore
Alejandro Demichelis
Sam Merlin
Celicourt Communications +44 (0) 20 7520 9266
Mark Antelme
Jimmy Lea
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No.596/2014, and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Notes to Editors:
About Savannah Petroleum
Savannah Petroleum PLC is an AIM listed oil and gas company with
exploration and production assets in Niger and Nigeria. Savannah's
flagship assets include the R1/R2 and R3/R4 PSCs, which cover c.50%
of the highly prospective Agadem Rift Basin ("ARB") of South East
Niger, acquired in 2014/15. The Company is also in the process of
acquiring interests in the cash flow generative Uquo and Stubb
Creek oil and gas fields and a 20% interest in the Accugas
midstream business in South East Nigeria from Seven Energy.
Further information on Savannah Petroleum PLC can be found on
the Company's website:
http://www.savannah-petroleum.com/en/index.php
About the Agadem Rift Basin
The Agadem Rift Basin is located in South East Niger and covers
an area of approximately 30,000 km(2) in size located in South East
Niger. In the modern era, China National Petroleum Corporation
("CNPC") has made 97 discoveries from the last 127 exploration
wells with the principal discovered geological play being a
relatively shallow Eocene Sokor Alternances tilted fault light oil
block play. The basin has been in production since 2011 following a
first phase of development of the Agadem PSC area (which is
adjacent to Savannah permit areas) by a CNPC-led joint venture.
Despite the high success rate seen in the ARB to date, Savannah
believes the basin to have been relatively lightly explored, both
in terms of overall activity levels and stratigraphic horizons
which have been targeted. Further exploration activity in the basin
is aided by the very large geological dataset managed by the
Niger's Ministry of Energy & Petroleum which comprises c.12,000
km(2) of modern 3D seismic, c.30,000 km of 2D seismic and over 250
well data suites.
About Savannah's ARB Project
Savannah's Niger project consists of two PSC areas (R1/R2 and
R3/R4) which together cover an area of 13,655 km(2) . Across these
permit areas, Savannah has mapped 126 un-drilled exploration
prospects and leads.
Following an extensive period of geological data acquisition and
evaluation, Savannah commenced a 3 firm well and 6 optional well
drilling program with the spud of the Bushiya-1 well in March 2018.
The initial focus of this program has been the R3 East area, with
all three wells drilled to date by the Company (Bushiya-1, Amdigh-1
and Kunama-1) having resulted in light oil discoveries.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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