An expanded shareholder base
In July 2014 Mirabaud acted as joint bookrunner in Savannah Petroleum’s IPO on AIM, raising US$50m to fund the acquisition of the R1 and R2 licences from the government and pre-drill technical work. At IPO, the company substantially broadened its shareholder register with participation from institutions including Standard Life, Fidelity, Capital and Henderson.
Savannah holds 95% of the contiguous R1 and R2 licences in the Agadem basin, having won a 2013 bid round held by the Niger government. The area lies immediately adjacent to and previously formed part of a licence held by China National Petroleum Corporation (CNPC) that was subject to partial relinquishment under its contract terms. CNPC has invested more than US$2.5bn in the wider basin over the past five years and made 77 reported discoveries with 832 mmbbls of 2P reserves. The same geology extends into Savannah’s under-explored acreage, which offers the potential for low-risk exploration. Independent consultants CGG Robertson estimate R1 and R2 contain 819 mmbbls of gross unrisked prospective resources.