REG - Savannah Energy Plc - SPA with Société Nationale Des Hydrocarbures

Savannah EnergyAnnouncement

20/04/2023 07:00

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RNS Number : 8312W  Savannah Energy Plc  20 April 2023

20 April 2023

 

Savannah Energy PLC

("Savannah" or the "Company")

 

 

SPA Signed with Société Nationale Des Hydrocarbures

 

Savannah Energy PLC, the British independent energy company focused around the
delivery of Projects that Matter in Africa, is pleased to announce that its
wholly owned subsidiary, Savannah Midstream Investment Limited ("SMIL"), has
signed a Share Purchase Agreement ("SPA") with the national oil company of
Cameroon, Société Nationale Des Hydrocarbures ("SNH"), relating to the sale
by SMIL and purchase by SNH of 10% of the issued share capital (the "Shares")
in Cameroon Oil Transportation Company S.A. ("COTCo") (the "Transaction").

COTCo owns and operates the 903km Cameroon section of the Chad-Cameroon export
pipeline, the Kome Kribi 1 floating storage and offloading facility and
related infrastructure. The pipeline has a 250 Kbopd nameplate capacity and is
the only international export route for oil production in Chad. During 2022,
COTCo transported an average of 124 Kbopd of crude oil valued at an estimated
US$4.6bn at the prevailing Brent crude oil prices.

In consideration for the sale of the Shares, SNH will pay a cash consideration
of US$44.9 million (the "Consideration") to SMIL. The Consideration, when
received, will be used by the Savannah group for part repayment of existing
debt facilities.

Completion of the transfer of the Shares from SMIL to SNH will result in SMIL
shareholding in COTCo reducing from 41.06% to 31.06%. Completion shall occur
upon satisfaction of certain conditions precedent related to amendments to the
bylaws of COTCo and is expected to occur in H2 2023. SMIL will retain the
right to the dividend attaching to the Shares until the date of payment of the
Consideration.

Pursuant to the terms of the SPA, SNH and SMIL have pledged, inter alia, their
support of one another as shareholders in COTCo.

 

Further information on COTCo

The following information is included in accordance with the disclosure
requirements of Schedule Four to The AIM Rules for Companies: as at 31
December 2021, COTCo reported total assets of US$680.0 million and profit
before tax of US$33.8 million.

 

 

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

 

Savannah Energy
          +44 (0) 20 3817 9844

Andrew Knott, CEO

Nick Beattie, 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
Broker)                            +44 (0) 20 7220
0500

Christopher Raggett

Tim Redfern

 

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

John Prior

Hugo Rich

James Sinclair-Ford

 

Camarco
          +44 (0) 20 3757 4983

Billy Clegg

Owen Roberts

Violet Wilson

 

About Savannah Energy:

Savannah Energy PLC is an AIM quoted British independent energy company
focused around the delivery of Projects that Matter in Africa and is active in
Cameroon, Niger and Nigeria.

 

 

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