The return to trading of Savannah Energy PLC (AIM:SAVE) after a two-year suspension was flagged by house brokers Cavedish and Shore Capital on Tuesday.
Cavendish reinstated its target price of 51.5p, a 96% premium to the suspension price.
The African energy company has raised £30.6 million from an equity issue and agreed terms for a new US$200 million hydrocarbon asset acquisition facility.
Combined, these expected to lay the foundations for the delivery of Savannah’s 2025-2030 organic and inorganic growth plans, Cavenish said.
"Savannah’s core business continues to perform strongly, with the company benefitting from over US$3.4bn of contracted future gas revenues, at a weighted average contract life of 13 years and a 25-year reserve and resource life."
The shares were trading at 9.45p late on Tuesday, following the fundraising at 7p, where participants will include CEO Andrew Knott and Blacksea, the energy-focused investment company that is providing the new debt facility to acquire upstream oil & gas assets.
The suspension from trading was due to a now terminated agreement to acquire a portfolio of oil & gas assets in South Sudan, noted house broker Shore Capital.
The existing portfolio is focused on Nigerian upstream and midstream gas assets, which supply circa 20% of Nigeria’s thermal power generation capacity, analysts noted.
"There have been substantial changes to the business since the shares were suspended at 26p in December 2022."