REG - Savannah Energy Plc - GSA signed with the Central Horizon Gas Company

Savannah EnergyAnnouncement

21/02/2022 07:00

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RNS Number : 2096C  Savannah Energy Plc  21 February 2022

21 February 2022

 

Savannah Energy PLC

("Savannah" or "the Company")

 

New Gas Sales Agreement signed with the Central Horizon Gas Company

 

Savannah Energy PLC, the British independent energy company focused around
the delivery of Projects that Matter in Africa, is pleased to announce that
its Accugas subsidiary has entered into a new gas sales agreement ("GSA") with
the Central Horizon Gas Company ("CHGC"), a subsidiary of Axxela Limited
("Axxela"), and a major gas distribution company situated in the South-South
region of Nigeria.

CHGC operates a 17km gas pipeline infrastructure network with a throughput
capacity of 50 MMscfpd, which provides natural gas to industrial and
commercial customers in the Trans Amadi Industrial Area of Port Harcourt as
well as the Greater Port Harcourt Area, Nigeria.

CHGC is majority owned and controlled by Axxela, which delivers natural gas to
over 185 industrial and commercial customers via its gas infrastructure
network across cities in Southern Nigeria including Lagos and Port Harcourt.

Under the terms of the GSA, CHGC can nominate to be delivered up to a maximum
daily quantity of 5 MMscfpd. The GSA is initially for a one-year period but is
extendable by mutual agreement. Accugas will deliver gas via its Ikot Abasi
Gas Receiving Facility and then via third-party gas infrastructure to CHGC in
the Port Harcourt area. First gas deliveries are expected to commence within
the next 12 months and are dependent on CHGC completing certain works to
connect to the third-party gas delivery infrastructure. Accugas is not
expected to incur any additional capital expenditure in this regard.

 

Andrew Knott, CEO of Savannah Energy, said:

"We are delighted to announce this new gas sales agreement with CHGC and the
Axxela Group. This transaction once again demonstrates Accugas' position as
gas supplier of choice in South East Nigeria. We look forward to a successful
future partnership with both CHGC and the wider Axxela Group."

 

Commenting on behalf of Axxela, Chief Executive Officer, Bolaji Osunsanya,
said:

"One of our core values is partnership and we believe in the power of
collaboration as a way of unlocking unlimited possibilities. This new
arrangement demonstrates our commitment to delivering value-adding energy
solutions across Nigeria, and most importantly, it further underscores our
overarching goal of spurring the socio-economic development of key hubs across
Nigeria and the African region."

 

 

 

 

For further information, please refer to the Company's
website www.savannah-energy.com (http://www.savannah-energy.com/)  or
contact:

 

 

 Savannah Energy                                                                       +44 (0) 20 3817 9844
 Andrew Knott, CEO
 Nick Beattie, Interim CFO
 Sally Marshak, Head of IR & Communications

 Strand Hanson (Nominated Adviser)                                                     +44 (0) 20 7409 3494
 James Spinney
 Ritchie Balmer
 Rob Patrick

 finnCap Ltd (Joint                                                                    +44 (0) 20 7220 0500
 Broker)

 Christopher Raggett

 Tim Redfern

 Panmure Gordon (UK) Ltd (Joint                                                        +44 (0) 20 7886 2500
 Broker)

 John Prior

 Hugo Rich

 James Sinclair-Ford

 Camarco                                                                               +44 (0) 20 3757 4983
 Billy Clegg

Owen Roberts

Violet Wilson

 

 

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.

 

About Savannah Energy:

 

Savannah Energy PLC is an AIM listed British independent energy company
focused around the delivery of Projects that Matter in Africa. In Nigeria,
the Company has controlling interests in the cash flow generative Uquo and
Stubb Creek oil and gas fields, and the Accugas midstream business in South
East Nigeria, which provides gas enabling over 10% of Nigeria's thermal power
generation. In Niger, the Company has licence interests covering approximately
50% of the highly oil prolific Agadem Rift Basin of South East Niger, where
the Company has made five oil discoveries and seismically identified a large
exploration prospect inventory consisting of 146 exploration targets to be
considered for potential future drilling activity. The Company has announced
that it is in the process of potentially acquiring a portfolio of upstream and
midstream assets in Chad and Cameroon.

 

Further information on Savannah Energy PLC can be found on the Company's
website: www.savannah-energy.com (http://www.savannah-energy.com/) .

 

 

 

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