NIGERIA: Savannah Energy Completes Acquisition of SIPEC

Savannah Energy announces the completion of the acquisition of 100% of Sinopec International Petroleum Exploration and Production Company Nigeria Limited SIPEC, following a signing ceremony held in Lagos earlier this morning.

According to Savannah the acquisition consolidates its interest in the Stubb Creek oil and gas field, Nigeria, increasing our group Reserves and Resources base by by approximately 30% from 151 MMboe to 197 MMboe. This includes 227 Bscf of 2C gross gas Resources, securing significant additional long-term feedstock gas available for sale to our Accugas customers

The completion of the SIPEC Acquisition creates material potential production upside for Savannah as the company now intends to commence an expansion programme, anticipated to increase Stubb Creek Field gross oil production by c. 75% from an average of 2.7 Kbopd in 2024 to approximately 4.7 Kbopd. The acquisition is highly accretive to group net asset value, adding a management estimated US$194m of value on pre-debt basis.