British independent energy company Savannah Energy has signed separate share purchase agreements (SPA) with Sinopec International Petroleum Exploration and Production Corporation (SIPC) and Jagal Ventures to acquire 100% of the outstanding share capital of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC)
The company has published an updated competent persons report (CPR) compiled by CGG Services (UK), covering its assets in Nigeria. According to the report, Savannah will primarily acquire interests in Stubb Creek oil and gas field, Jagal SPA and Accugas. The acquisitions will bring about change in production estimates for the better.
Andrew Knott, CEO, Savannah Energy, said, "Savannah remains committed to growing our core business in Nigeria through a combination of both value accretive acquisitions and organic projects. This is reflected in this morning's announcement of the SIPEC Acquisition. The base case acquisition has been priced in line with our expected returns criteria, with the identified upside cases (the oil de-bottlenecking and new gas sales to Accugas projects) hoped to add significant value to the Stubb Creek field over time."
