On 19 August 2019, the UK-based company Savannah Petroleum plc (Savannah) informed that Nigerian authorities approved the transfer of Seven Energy International Ltd (Seven)âs assets, as described two years earlier when Savannah signed a lock-up agreement regarding a USD 140 MM acquisition deal. Savannah is acquiring Sevenâs working interests in two marginal fields located southeastern Niger Delta. Savannah will own 40% in Frontier Oil-operated Uquo oil and gas field, as well as 31.875% in Universal Energy Resources (UER) -operated Stubb Creek oil field (Seven had 62.5% in UER so far). Savannah will also acquire a stake in the 260 km Accugas gasline and associated infrastructure.  The dealâs finalization is subject to the payment of all taxes due in relation to the transaction within 90 days of the receipt of the official approval letter. Andrew Knott, CEO of Savannah Petroleum plc, commented "The receipt of Consent in relation to the Seven Energy Transaction is a significant milestone for Savannah. I would like to take the opportunity to thank the Federal Government of Nigeria for their support in relation to the Transaction. I look forward to working with all stakeholders as we advance the Seven Assets."   Background information  On 15 November 2017, the UK-based company Savannah Petroleum plc (Savannah) informed that it has signed a lock-up agreement regarding a USD 140 MM acquisition of Nigerian assets from Seven Energy International Ltd (Seven). Upon finalization of the deal, Savannah will acquire Sevenâs working interests in two marginal fields located southeastern Niger Delta. Savannah will own 40% in Frontier Oil-operated Uquo oil and gas field, as well as 31.875% in Universal Energy Resources (UER) -operated Stubb Creek oil field (Seven had 62.5% in UER so far). Savannah will also acquire a stake in the 260 km Accugas gasline and associated infrastructure. The deal is worth USD 87.5 MM cash and USD 52.5 MM shares, implying a possible new share issue.  A lock-up agreement is understood to be binding contract prohibiting both parties from selling any shares of stock for a specified period of time. Lock-up periods typically last 180 days but can last for as little as 120 days or as long as 365 days.  As of late 2017, Savannah was an E&P company active only in Niger, where it expects to spud the first of three exploration wells as soon as the company shares are back to the trading market (end of lock-up agreement). The well was initially planned to be spudded in August 2017 in the Block R3 (East area).
On 18 August 2019, Savannah Petroleum (Savannah) announced that the Nigerian President Muhammudu Buhari had approved Seven Energyâs asset transfer (Sevenâs interests in Seven Uquo Gas Limited, Universal Energy Resources Limited and Accugas Limited). 