The Oil Man: Savannah Petroleum

Savannah Petroleum

Full-year results from Savannah Petroleum and, as always, historic data, but it does give the market a good idea as to how the company has been preparing for this summer's drilling campaign.

An increase in best estimate gross mean risked prospective resources of 2,185 million barrels up from 1,191 million barrels. The Agadem concept has been updated with a $200 million reduction in external financing costs to first oil in a 75 million barrel development. The export route for Agadem crude to the Kaduna refinery in northern Nigeria is in advanced discussions. The competent person says the break even oil price is $26 per barrel.

The acquisition of 806 square kilometres of 3D seismic over a portion of the R3 PSC area was completed ahead of time and under budget. SAVP has $118 million of net assets and with $23 million of year end cash after a $40 million placing last summer it is in a strong position ahead of this summer's drilling campaign.

With a Capital Markets Day on 7th June, the company will show how exciting the prospects are in Niger this summer.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.