Savannah Energy Plc Gas Sales & Purchase Agreement signed with AMOCON (0852B)
31 5월 2023 - 3:00PM
UK Regulatory
TIDMSAVE
RNS Number : 0852B
Savannah Energy Plc
31 May 2023
31 May 2023
Savannah Energy PLC
("Savannah" or "the Company")
New Natural Gas Sales and Purchase Agreement signed with
Amalgamated Oil Company Nigeria Limited
Savannah Energy PLC, the British independent energy company
focused around the delivery of Projects that Matter , is pleased to
announce that the Company's 80% indirectly owned subsidiary,
Accugas Limited, has entered into a Natural Gas Sales and Purchase
Agreement (the "NGSPA") with Amalgamated Oil Company Nigeria
Limited ("AMOCON") for gas produced in the OML 156 sole risk
petroleum lease area, for onward sale to its customers.
Accugas focuses on the marketing, processing, distribution and
sale of gas to the domestic Nigerian market. In 2022, Accugas
processed and transported an average of 145 MMscfpd of gas through
its pipeline network, with all gas sourced from Savannah's 80%
indirectly owned Uquo gas field(1) . Gas is processed at Accugas'
200 MMscfpd Uquo central processing facility ("Uquo CPF") for
onward transportation to customers through its c.260km, up to c.600
MMscfpd transportation capacity pipeline network. The NGSPA with
AMOCON represents the first time that Accugas will be supplying gas
to its customers that has not been produced from the Uquo gas
field. Gas purchased from AMOCON does not require processing by
Accugas and therefore does not utilise available capacity at the
Uquo CPF.
Under the terms of the NGSPA, Accugas has agreed to purchase up
to 20 MMscfpd of gas from AMOCON over the course of the next ten
years. The cost of connection to Accugas' infrastructure has been
borne by AMOCON, with the gas being delivered from a new
AMOCON-owned 140m pipeline connecting AMOCON's Early Production
Facility ("EPF") to Accugas' existing pipeline network. Under the
terms of the NGSPA, all capital expenditure required for the AMOCON
EPF-to-Accugas pipeline was borne by AMOCON and Accugas has not
incurred any additional capital expenditure in relation to this
project. The contract is already operational and gas supply to
Accugas has stabilised at approximately 20 MMscfpd.
Andrew Knott, CEO Savannah Energy, said:
"Since we announced our intention to acquire our ownership
interest in Accugas in 2017, Accugas has recorded six consecutive
years of growth in Total Revenues (2) at a compound annual growth
rate of 21%. We are now contracted to supply gas to up to 24% of
Nigeria's thermal power generation capacity (up from 10% at the
time of acquisition) as well as key petrochemical and cement
factories. We are clearly performing a critical service to the
Nigerian economy.
By providing a commercial route to market for otherwise stranded
gas resources, the deal with AMOCON represents a new source of
growth for Accugas. This deal has the potential to serve as a
template for the commercialisation of other stranded gas resources
in South East Nigeria which represents a potentially significant
opportunity for Accugas."
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
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR").
About Savannah Energy:
Savannah Energy PLC is an AIM quoted British independent energy
company focused around the delivery of Projects that Matter, active
in Cameroon, Niger and Nigeria.
Footnotes:
1. Under the terms of the Uquo field joint operating agreement,
Savannah Energy Uquo Gas Limited holds 100% economic interest in
the Uquo field gas project (including associated condensate
production). Frontier Oil Limited holds 100% economic interest of
the oil project at the Uquo Field.
2. Total Revenues are defined as the total amount of invoiced
sales during the period. This number is seen by management as more
accurately reflecting the underlying cash generation capacity of
the business in comparison to Revenue recognised in the
Consolidated Statement of Comprehensive Income.
Savannah's Operations in South East Nigeria (including AMOCON
facility)
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END
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