(SAVP:AIM) 33.2p


Gain to date: 25% Orig­i­nal en­try point: Buy at 26.6p, 6 Septem­ber 2018

OUR POS­I­TIVE call on Sa­van­nah Pe­tro­leum (SAVP:AIM) is off to a good start boosted by strong oil prices and con­tin­u­ing op­er­a­tional ex­cel­lence in Niger.

The com­pany has drilled four suc­cess­ful wells in this lo­ca­tion in 2018 and has iden­ti­fied 120 po­ten­tial struc­tures to drill, demon­strat­ing the scale of the op­por­tu­nity it is chas­ing in the African coun­try.

Along­side half year re­sults on 28 Septem­ber, Sa­van­nah un­veiled a new $50m debt fa­cil­ity which should en­able it to ac­cel­er­ate ac­tiv­ity ahead of first out­put from Niger in 2019. It also flagged im­mi­nent re­sults from its fifth well of the cur­rent drilling pro­gramme, Zomo-1.

The only real dis­ap­point­ment is a fur­ther de­lay in the com­ple­tion of the Seven En­ergy ac­qui­si­tion in Nige­ria.

The com­pany now says this trans­ac­tion, which will add ma­te­rial nat­u­ral gas pro­duc­tion to the port­fo­lio mix, will com­plete be­fore the end of the year.

Bro­ker Can­tor Fitzger­ald com­ments: ‘The com­pany has made great strides in a short pe­riod of time, and 2019 should prove trans­for­ma­tional with first pro­duc­tion in Niger and com­ple­tion of the Seven En­ergy deal.’


Ex­cit­ing times at Sa­van­nah, keep buy­ing. (TS)

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