The Seven Energy Group, a Nigerian oil and gas exploration, development, production and distribution company, has just completed the sale of its assets in an acquisition, by a British firm, Savannah Petroleum Plc.
According to Punch, the Chief Executive Officer, Savanah Petroleum, Andrew Knoot expressed his joy about the completion of the acquisition. He said, “We are very pleased to have completed the Seven Energy Transaction. The deal transforms Savannah into a full-cycle E&P company in West Africa and marks the start of a very exciting time for us.
“We have acquired a business with great people and a strong set of exploration, appraisal, development and production assets which are expected to be highly cash flow generative for the company.”
Meanwhile, the pronouncement reportedly came years after the Seven Energy Group had liquidity challenge that prevented the company from meeting its debt obligations. Seven Energy had earlier announced in 2017 that it had entered into a transaction that would lead to the sale of most of its assets to the British petroleum company.
Two years on from the start date (November 2017) of the transaction, an acquisition was completed and announced by Savannah Petroleum in a statement on Friday (November 2019).
It will be recalled that on 4 February 2019, Seven Energy International Limited and Savannah Petroleum PLC, inter alia, entered into the implementation agreement setting out the steps and conditions for the implementation of the restructuring of the Seven group and acquisition by Savannah of certain Seven assets.
“At a court hearing on 13 November, administrators were appointed to Seven Energy International Limited and yesterday (Thursday) effected the transfer of the Seven Assets to group companies controlled by Savannah and the AIIM.
“Following this step, final long-form documentation with respect to the transaction was executed in accordance with the agreed steps as set out in the implementation agreement, and the transaction has now been completed,” Savannah Petroleum said.
However, Savannah Petroleum now has 80% interests in Seven Uquo Gas Ltd, which also holds 40% and 51% participating interests in Seven Uquo oil field and the Stubb Creek field respectively, both in South-East Nigeria through 100% ownership of Universal Energy Resources Limited.