Savannah Energy PLC (AIM:SAVE) has announced an equity fundraise with the firm hauling in £30.6 million as shares resumed trading in London after a suspension that lasted for around two years
The company is selling 437 million new shares through the funding, priced at 7p each.
Trading in Savannah shares resumed this morning, after a long suspension.
It comes as talks over a protracted reverse takeover of assets in Sudan were brought to a close.
Albeit, the firm said it reserves the right to pursue a new version of the deal that would not constitute a reverse takeover under the AIM rules. Preliminary talks have been held, it said.
Stock market screens show a 60% drop in Savannah’s share price compared to its ‘last close’ which was at 22.5p on December 2022.
In London today, Savannah shares were changing hands at 9.75p.
Refinanced
As well as Tuesday's £30 million equity raise, the company has arranged a $200 million ‘asset acquisition facility’ with Blacksea W.L.L, which is described as an energy-focused investment company.
And, as previously announced, Savannah in December arranged a $60 million reserve-based lending facility.
"This morning, we are announcing a series of primary and secondary transactions in our shares," Savannah Energy chief executive Andrew Knott said in a statement.
“These transactions have seen existing institutional shareholders, the company's board and management team, and other new long-term growth orientated investors make significant new investments in our company.
“Together with the earlier announced signature of a new US$200m hydrocarbon asset acquisition debt facility, these transactions lay a strong foundation for the delivery of our 2025 - 2030 organic and inorganic growth plans.”
Knott added: “I would like to express my gratitude to our existing and new shareholders and lenders for their support and I look forward to updating everyone as we progress the delivery of our focus projects throughout the year."
Trading update
After Monday’s close, Savannah provided investors with a trading update reporting average production of 23,100 barrels oil equivalent per day (of which 88% was gas) in 2024.
It also highlighted progress with projects to develop gas processing facilities, as well as new sales contracts secured with customers during the year.
Also, in Niger, the company said plans are progressing for the R3 East oil development.
In terms of financials, Savannah said it had $393.6 million of income in 2024, and cash collection reached $249.5 million whilst debt amounted to $634 million.
The company said revenue for the year was in line with guidance, and operating costs were under budget.
“This is an exciting time for Savannah. Our core Nigerian business remains extremely robust,” Knott commented in Monday's announcement.