Savannah Energy Completes Acquisition of SIPEC, Expands Reserves and Resources.

Savannah Energy PLC, a British independent energy company, has announced the completion of its acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC).

Reaction from Savannah CEO

Andrew Knott, CEO of Savannah, described the acquisition as a key milestone for the company's 2025 business strategy. He expressed gratitude to the Nigerian government for its support in approving the deal and welcomed SIPEC employees joining Savannah.

Key Highlights

• The acquisition expands Savannah's reserves and resources base by approximately 30%, from 151 million barrels of oil equivalent (mmboe) to 197 mmboe.
• The deal brings in an additional 227 billion standard cubic feet (Bscf) of "2C gross gas Resources" at Stubb Creek Field.
• The transaction consideration was fully funded through a $60 million Reserve-Based Lending debt facility.
• The cumulative consideration paid was approximately $35.1 million, with $2 million in deferred cash consideration payable in eight quarterly installments post-completion.

Expansion Plans

Savannah announced plans for an 18-month expansion program aimed at increasing gross production at Stubb Creek Field from an average of 2.7 kbdopd in 2024 to approximately 4.7 kbdopd.

Stubb Creek Field

• Located in Akwa Ibom State, Nigeria, the field is a producing oil field with considerable undeveloped, non-associated 2C gas resources.
• As at year-end 2024, the field had an estimated 11 MMstb of 2P gross oil Reserves and 515 Bscf of 2C gross gas Resources.