By Joe Hoppe
Savannah Energy PLC said Monday that it has signed separate share purchase agreements with Exxon Mobil Corp. and Petronas Overseas Ventures Bhd., acquiring their entire upstream and midstream portfolios in Chad and Cameroon, respectively.
The oil-and-gas company said completion of the acquisitions will lead to Savannah acquiring a 75% controlling interest in the Doba oil project, and an effective 70% indirect controlling interest in the Chad-Cameroon export transportation system.
In 2020, the Doba oil project produced an average gross of 33.7 thousand barrels of oil per day, while the pipeline transported a gross 129.2 thousand barrels of oil per day.
Due to their size and nature, both acquisitions individually constitute reverse takeover transactions and are subject to shareholder approval. A general meeting will be convened around Dec. 17, following which the company plans to restore its shares to trading on London's AIM.
"Under our stewardship, we expect these assets in aggregate to generate positive free cashflow and fiscal revenues for Chad and Cameroon for a further 25 plus years," Chief Executive Andrew Knott said.
Write to Joe Hoppe at firstname.lastname@example.org
(END) Dow Jones Newswires