Savannah Petroleum Plc, a British independent oil and gas company, revealed plans to acquire Nigeria’s Seven Energy Assets will be completed by the end of 2018. This decision was reached after the submission of the revised terms of the transaction detailing the additional acquisitions, as announced by the company on September 20, 2018 to the Nigerian Department of Petroleum Resources (DPR).
The details, which were revealed in a press release signed by Savannah Petroleum CEO, Andrew Knott, noted that the DPR has informed Savannah of its completion on due diligence in relation to the acquisition and it is fully satisfied with the transaction.
The press release also revealed that application for Ministerial consent for the transaction is currently being processed with the DPR for further transmission to the office of the Minister of State for Petroleum Resources for final approval.
In 2017, Savannah Petroleum completed a $125 million fund raise to help it fund its proposed acquisitions, drilling campaign in Nigeria and other general corporate purposes. Part of the proceeds raised will support the company’s planned reverse take over of certain oil and gas assets in Nigeria held by Seven Energy International Limited.
Seven Energy, a Nigerian company founded in 2004, ran into troubled waters after several defaults on its debt servicing obligations. The company decided to enter into a transaction for a comprehensive capital restructuring, which includes selling most of its assets.