Savannah Petroleum PLC, the British independent oil & gas company focused around activities in Nigeria and Niger, is pleased to announce the publication of a Competent Person's Report ("CPR") covering the Uquo and Stubb Creek fields as well as the Accugas midstream business (together the "Nigerian Assets") recently acquired from Seven Energy, along with an operational and trading update covering the Nigerian Assets.
· Confirmation by CGG Services (UK) Ltd ("CGG"), the author of the CPR, of previously announced Nigerian Assets' 2P reserves and 2C resources (subject to an adjustment for produced volumes), with gross and net 2P reserves of 99.6 mmboe and 71.0 mmboe respectively, and gross and net 2C resources position of 98.0 mmboe and 58.6 mmboe respectively;
· Nigerian Assets gross NPV10, on a maintenance adjusted take-or-pay basis, of US$1.2bn assessed by CGG (NPV10 net to Savannah of US$957m);
· Net asset-level free cash flow generation, on a maintenance adjusted take-or-pay basis, by the Nigerian Assets assessed by CGG as an average of c.US$130m p.a. (2020 - 2023);
· Gross 2019 year-to-date production from the Nigerian Assets of 17.3 kboepd (+33% year-on-year);
· 2019 guidance for cash collections from the Nigerian Assets of c. US$190m, leading to a US$40m reduction (2019 vs. 2018) in total third-party debt outstanding at the Nigerian Assets and a forecast YE'19 cash position within the Nigerian Assets of a minimum of US$15m; and
· Forecast 2020 capital expenditure at the Nigerian Assets of c.$41.5m.
Andrew Knott, CEO of Savannah Petroleum, said:
"I am pleased to provide this morning's update, which demonstrates the high quality and robust performance of our Nigerian Assets. I am also happy to report that we have seen a reduction in production costs at the Nigerian Assets of c.18% over the 2016-19 period. We continue to view these assets as a strong platform from which we will deliver further growth. In this regard, we continue to make good progress in relation to the supply of gas to potential new customers, and are investing in additional well stock to ensure anticipated future production levels are capable of being met. I look forward to providing further updates on this in the near-term."