My Hero (again) Tim Martin of JD Wetherspoon lashes Corporate Governance woke Brigade, notably the Commie sociologist running charlatans PIRC
Savanah Petroleum (SAVP) first detailed the highly complex Seven Energy deal in a 503 page prospectus back in December 2017. I saw this deal as negative for all the reasons related to timescale and risk I set out recently, but good if it completed. The deal changed in December 2018 and now I am not so sure it is good!
Savanah Petroleum (SAVP) has today updated us on the Seven Energy deal and with the can is being kicked down the road once again. This substantial deal was reviewed by Gary Newman back in Jan 2018 when the deal was announced highlighting the scale and potential to transform Savanah, and again after the very positive first drilling results from the Niger exploration assets were revealed.
Given the rise in oil price that we’ve seen over the past week or so, and the highest levels that it has been at in quite some time, I’m a little surprised to see Savannah Petroleum (SAVP) still languishing at around the 12-month low. With a market cap of nearly £230 million it isn’t as likely to see such large movements as you get on the AIM micro caps, but it is still small enough that I would expect the higher commodity price to have had some impact, given that it produces significant amounts of oil already.
Whenever a relatively small oil and gas company manages to raise a substantial amount of money it gets my attention, especially when you consider what the market has been like for this sector in recent times.
Savannah Petroleum is a stock which is new to me, even though it is rarely the case that I am not familiar with at least the name and the EPIC code of the active small caps / AIM plays – amongst the dozens I look at on a weekly basis.
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