Savannah gets extra time to explore in Niger
Savannah Energy has been granted extra time to explore an area in the Agadem Rift basin of southeast Niger, the London-listed company said on December 20.
Savannah entered into two production-sharing contracts (PSCs) to explore the onshore sites in 2014 and 2015. Those PSCs for blocks R1/R2 and R3/R4 have been formally renounced and replaced with a new PSC covering both areas, Savannah said.
The R1234 PSC was approved by Niger's council of ministers on December 16, Savannah said. The company will have to pay a signing bonus for the new licence, which will become effective in the first quarter and will reset the length of the exploration period to up to 10 years. This period will comprise an initial four-year term and two, two-year extension terms. One of these three terms can be extended by a further two years.
Savannah also said it would publish an AIM admission document on or around December 22 regarding its proposed acquisition of upstream and midstream assets in Chad and Cameroon from ExxonMobil and Malaysia's Petronas for a combined $626mn. After that, it will seek to restore the trading of its ordinary shares.