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Savannah Petroleum hails “significant growth” during 2015

Published: 02:31 26 May 2016 EDT

Oil workers on a well
Details of a possible transaction may come in the next month

Savannah Petroleum PLC (LON:SAVP) chief executive Andrew Knott has described 2015 as a year of “significant growth”, as the company unveiled its financial results statement.

He said: “we materially increased both our asset and resource bases. I believe that Savannah now finds itself in a highly advantageous position, with a large land position in a world class petroleum basin, an extensive and highly valuable technical dataset, and assets which benefit from a sophisticated oil service industry and associated low cost structure.”

The Africa focussed oil firm increased its prospective oil resource base for the R1/R2 asset, in Niger, to 1,19bn barrels with a new independent assessment from consultant CGG Robertson.

A new exploration target inventory was also published during the period, and it outlined 14 drill ready exploration prospects on R1/R2, as well as some 37 exploration leads.

In July, the group acquired the R3/R4 contract area too, which added 29 new leads and expanded the company’s acreage position so it now spans about 50% of the Agadem Rift Basin.

At the end of 2015, the company reported net assets of US$88mln and had US$8mln of cash. The pre-revenue exploration group reported a US$8mln loss for 2015.

Since year end, in January, a non-binding deal was signed which could lead to a transaction that would constitute a reverse takeover under AIM rules – and at that time the AIM shares were suspended.

Savannah said an update on the potential transaction was anticipated within the next month.

Operationally, a new seismic exploration programme will be the next milestone.

“As we prepare for our upcoming seismic acquisition campaign, and the subsequent exploration drilling programme, we look to the future with great excitement," Knott said.

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