Savannah has announced the successful placing of 62.8m shares with new and existing shareholders at 28p raising $23m. The raise is for working capital and the company remains on schedule to sign the Seven Energy implementation agreement by the end of January and complete the deal in the current quarter. When the deal is completed the company will receive a$90m cash injection and will then be strongly placed to bed in the transaction. Highlights include the exposure to the gas value chain in south east Nigeria and will exponentially increase value in the company especially when the successful campaign in Niger is added to later this year.
Premier have announced the initial results of the appraisal well on Block 7, offshore Mexico which has come in with 152m of net pay above the OWC as expected. The73% net to gross ratio was higher than expected and the reservoir quality unsurprisingly in line with Zaza-1. The well was deepened to evaluate the Marte prospect which was dry as expected by Premier at least. The well will now be side-tracked updip for coring and a DST of the Zama reservoir. All good news for Prems who’s excellent operational performance continues even though the shares are undeservedly low at 70p.