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Corporate PresentationFebruary 2020
2Savannah Energy PLC | Corporate Presentation 2020
These presentation materials (the “Presentation Materials”) do not constitute or form any part of any offer or invitation or inducement to sell or issue or purchase or subscribe for any shares in Savannah Energy plc (“Savannah”) nor
shall they or any part of them, or the fact of their distribution, form the basis of, or be relied on in connection with, any contract with Savannah, or any other person, relating to any Savannah securities. The Presentation Materials do
not constitute or form part of a prospectus prepared in accordance with the Prospectus Rules (being the rules produced and implemented by the Financial Conduct Authority (“FCA”) by virtue of the Prospectus Rules Instrument 2005)
and have not been approved as a prospectus by the FCA (as the competent authority in the UK). The Presentation Materials do not contain any offer of transferable securities to the public as such expression is defined in section
102(b) FSMA or otherwise.
Any decision regarding any proposed purchase of shares in Savannah must be made solely on the basis of the information issued by Savannah at the relevant time. Past performance cannot be relied upon as a guide to future
performance. The Presentation Materials are not intended to be distributed or passed on, directly or indirectly, to any other class of persons. They are being supplied to you solely for your information and may not be reproduced,
forwarded to any other person or published, in whole or in part, for any other purpose. In particular they, directly or indirectly, must not be distributed to persons in the United States of America, its territories or possessions or
Australia or Canada or New Zealand or Japan or the Republic of Ireland or South Africa or any jurisdiction, in each case, where to do so might constitute a violation of local securities laws or regulations.
The Presentation Materials contain certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. While Savannah believes the
expectations reflected in the Presentation Materials to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond Savannah’s control or within
Savannah’s control where, for example, Savannah decides on a change of plan or strategy. The Presentation Materials have been prepared following the completion of the Seven Energy Transaction in which Savannah acquired certain
oil and gas assets in Nigeria held by Seven Energy International Limited as per the terms set out in the Company’s RNS dated 15 November 2019.
No reliance may be placed for any purpose whatsoever on the information contained in the Presentation Materials or on the completeness, accuracy or fairness of such information and/or opinions expressed herein. Savannah
undertakes no obligation to revise any information contained in the Presentation Materials, including, without limitation, any forward-looking statements. No representation or warranty, express or implied, is made or given by or on
behalf of Savannah or any of its directors, officers, partners, employees or advisers as to the accuracy or the completeness of the information or opinions contained in the Presentation Materials and no responsibility or liability is
accepted by any of them for any such information or opinions or for any errors or omissions.
Disclaimer
3Savannah Energy PLC | Corporate Presentation 2020
Corporate overview
1. Source: 2P and 2C reserve and resource estimates for Nigeria per CGG Services (UK) Ltd CPR, December 2019. Prospective resource estimates for Niger per CGG Robertson CPR, December 2017. Note that the risked prospective resource estimate represents a “yet to find” volume and is not linked to Savannah’s planned exploration campaign. They are estimates of what could ultimately be discovered across the plays analysed, assuming a seismic and exploration drilling campaign of similar density to that employed to date elsewhere in the ARB.
Savannah Energy plc (“Savannah”)• Full cycle British oil and gas company focused around the delivery of material long-term returns for stakeholders
through the sustainable development of high-quality, high-potential oil and gas projects in Niger and Nigeria
• Listed on the London Stock Exchange (AIM), with strong institutional investor base including some of the largest asset management companies in the world
Aligned and experienced board and management team• Board and management have successful track records in establishing, growing and monetising oil and gas
companies and projects
• Have developed a clear and phased business plan for Savannah
Large and economically robust asset base • Asset base combines cashflow generative Nigerian assets with the R1/R2 and R3/R4 PSC areas in South East Niger
• Uquo and Stubb Creek (south east Nigeria) are large, producing, low-cost onshore oil & gas fields
• Controlling interest in Accugas midstream business (owner of the principal gas distribution and transportation network in South East Nigeria)
• In Niger, Savannah has c.50% of the oil prolific Agadem Rift Basin (“ARB”) under license, estimated by independent auditor CGG Robertson to contain c.2.8 bn bbls of “yet-to-find” prospective resource
In a period of transformational activity• 2018 Niger drilling campaign delivered 5 oil discoveries from 5 wells
• Extended well testing programme being planned for Niger discoveries as part of proposed early production scheme, in addition to new multi-well drilling campaign
• Near-term focus in Nigeria on delivery of production and cash flows, with addition of further upstream gas resource and additional demand (power station and industrial customers
Market Statistics (February 2020)
Listing AIM (SAVP)
Shares Outstanding 996,408,412
Share Price 9.00p
Market Cap. £90m
Reserve & Resource Base1 & 2
Blue Chip Shareholder Base
71MMBOE
NET 2P RESERVES
59MMBOE
NET 2C RESOURCES
2,821MMBOE
NIGER RISKED BEST ESTIMATE PROSPECTIVE RESOURCES
4Savannah Energy PLC | Corporate Presentation 2020
Two material business units
1. Note that the risked prospective resource estimate represents a “yet to find” volume and is not linked to Savannah’s planned exploration campaign. It is an estimate of what could ultimately be discovered across the plays analysed, assuming a seismic and exploration
drilling campaign of similar density to that employed to date elsewhere in the ARB.
Niger Nigeria
Assets
Business Model
Value Creation Potential
• Find and rapidly deliver cashflows from new oil fields at a material discount to the NPV of those fields
• Historic basin-wide finding cost of ~US$1/bbl, vs. expected NPV of discovered barrels of ~US$6/bbl
• Delivery of production and cash flows from existing assets
• Continued exploration and appraisal activity, with 119 structures identified on seismic for potential drilling targets
• Delivery of R3 East early production system
• Potential introduction of a partner
• Focus on addition of:
• New customers, including power stations (e.g. FIPL) and higher margin industrial customers
• Further gas resources, with c.40tcf undeveloped gas estimated to be located within tie-in radius of pipeline infrastructure
• R1/R2 PSC Area
• R3/R4 PSC Area
• Uquo Field
• Stubb Creek Field
• Accugas
• Large, low cost and low technical risk PSC areas
• Estimated by CGG Robertson Robertson to contain c.2.8 bn bbls of “yet-to-find” prospective resource
• Two large, onshore oil & gas fields with high deliverability wells
• Gas processing facility with capacity of 200 mmscfd
• Flagship gas processing and distribution infrastructure business in South East Nigeria with significant spare capacity
5
Niger
6Savannah Energy PLC | Corporate Presentation 2020
Agadem Rift Basin – regional context & activity history
Sources: Government of Niger, Savannah Energy, Petroquest, Wood Mackenzie, IHS, EIA.
Note: Current production levels figures reflect facilities constraints rather than geological.
CNPC era (2008+)• 110 discoveries from 137 exploration wells
(80% success rate)
• c.1bn bbls 2P reserve base established
• > 30,000km 2D and 13,000km2 3D seismic acquired over the original Agadem PSC
• Establishment of major logistics and infrastructure hubs, including oil pipeline and refinery
• First oil delivered from Sokor and Goumeri (2011) and Agadi (2014)
• 20% of Agadem license sold to CPC (2013)
• Portion of license mandatorily relinquished (2013)
Savannah/ CNPC era (2014+)• July 2014, R1/R2 license awarded to Savannah
• July 2015, R3/R4 license awarded to Savannah
• 36,948km FTG survey acquired (2014/15)
• 806km2 3D seismic survey acquired over a portion of R3 (2016/17)
• 5 discoveries from 5 exploration wells, a 100% success rate (2018)
• R3 East early production solution to be implemented and further multi-well campaign to commence
• Basin-wide export pipeline launched by CNPC in September 2019
• Potential introduction of a partner
Central African rift system
MugladBasinc.2bn bbls
c.200kbd production capacity
BongorTroughc.400 mmbbls
c.50kbd production capacity
MelutBasinc.2bn bbls
c.250kbd production capacity
DobaBasinc.1bn bbls
c.100kbd production capacity
AgademRift Basinc.1bn bbls
c.20kbd production capacity
7Savannah Energy PLC | Corporate Presentation 2020
Agadem Rift Basin –understanding the high success rate
Source/Migration
Source: Savannah Energy based on Savannah proprietary data and data provided by Niger’s Ministry of Energy & Petroleum. Note that Agadem rift basin stylised geological cartoon provides a simplified conceptual view of the basin and therefore should not be viewed as
definitively accurate.
• The primary source rocks in the Agadem Rift Basin are Lower Yogou marine shales
• Modelled expulsion of oil (green areas) is extensive
• Oil shows and discoveries have been proven across the length and breadth of the basin, proving the effectiveness of the migration system
Reservoir
• The map shows the proven net reservoir within wells which penetrated the Sokor Alternances
• All wells drilled have found reservoir within the SokorAlternances
Trap
• Simple structural configuration – only one predominant fault trend
• Well defined traps on high quality 2D and 3D seismic
• There are 5-6 stacked reservoirs in the Sokor Alternances, with trap seal potential at the interfaces
Volume of oil generated serves to
materially reduce source/migration risk
All wells drilled to date have found
reservoir within the Sokor Alternances
3D data and stacked reservoirs
(i.e. multiple “shots at dice”)
serve to limit trap risk
Reservoir present in the Sokor Alternances
Reservoir absent in the Sokor Alternances
8Savannah Energy PLC | Corporate Presentation 2020
Agadem Rift Basin –understanding the remaining opportunity (1)
Example seismic line through Amdigh-1 discovery Example seismic line through “on trend” Agadem discovery
SW NEAmdigh-1 SW NEExample Discovery
Source: Savannah Energy proprietary data and analysis, and data provided by Niger’s Ministry of Energy & Petroleum.
Note: the two images above are shown on the same horizontal/vertical scale.
Significant portions of Savannah’s Niger acreage have similar geology to the neighbouring Agadem PSC area
9Savannah Energy PLC | Corporate Presentation 2020
Agadem Rift Basin –understanding the remaining opportunity (2)
Source: Savannah Energy proprietary data and analysis, and data provided by Niger’s Ministry of Energy & Petroleum.
1. Prospective resource estimates per CGG Robertson CPR, December 2017. Note that the risked prospective resource estimate represents a “yet to find” volume and is not linked to Savannah’s planned exploration campaign.
They are estimates of what could ultimately be discovered across the plays analysed, assuming a seismic and exploration drilling campaign of similar density to that employed to date.
• Savannah has mapped 146 leads and prospects across R1/R2 and R3/R4
• Independent reserve auditor CGG Robertson has estimated “yet to find” risked prospective resources across Savannah’s license areas of 2,821 mmbbls1
• The basin as a whole is clearly materially underexplored with only 6 proven play types, of which just one has seen any significant focus
• The spatial comparison above versus the UK Central North Sea (a rift basin which has seen significant capital investment) where there are 61 proven play types illustrates this, albeit in an extreme manner
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Agadem rift basin creaming curve Agadem rift basin vs. UK portion of Central North Sea
Cumulative OOIP(mmbbls)
Plays not yet creamed
10Savannah Energy PLC | Corporate Presentation 2020
Agadem Rift Basin – geological model
Source: Savannah Energy. Note that Agadem rift basin stylised geological cartoon provides a simplified conceptual view of the basin and therefore should not be viewed as definitively accurate.
Basin play types and potential upside Agadem rift basin stylised geological cartoon
• Oil discoveries in the ARB have typically been made in structural trapping configurations, whereby oil has been trapped across a fault against shale in sandstone reservoirs
• The principal formations in which such discoveries have been made are the Eocene Upper Sokor, the Eocene Sokor Alternances and the Upper Cretaceous Madamaand Upper Yogou formations
• The cartoon opposite summarises this structural configuration:
• Oil (depicted in green) is generated in, and expelled from, the Yogou shales (beige rocks with grey ellipses)
• Oil then migrates through higher permeability sandstone reservoirs and along faults until it is trapped
• Examples of oil being trapped to create an “oil field” in a fault block setting are denoted using green shading against faults (i.e. sand-on-shale contact across a fault), while breached traps (i.e. sand-on-sand contact across a fault) are shown with dashed oil migration arrows crossing the fault
• There has been one stratigraphic oil discovery in the basin, whereby sandstones “pinch out” into trapping shales, (see conceptual example shown in Lower Yogousands opposite)
• Additional trapping potential exists over “shale ridge” structures in the Lower Yogou and Donga Formations
Total No. of ARB Discoveries
132
Pay in Upper Sokor 6
Pay in SokorAlternances
110
Pay in Madama 1
Pay in Yogou 14
Pay in Donga 1
LegendUS – Upper SokorLV – LV ShaleE1-E5 – AlternancesM – MadamaUY – Upper YogouLY – Lower YogouD – Donga
Savannah’s core focus remains the prolific Eocene Sokor Alternances
11Savannah Energy PLC | Corporate Presentation 2020
R3 East Drilling – strong operating track record continued
Representative R3 East area topography Savannah ARB operations track record
The ARB combines a proven operating environment with an established oil service sector; Savannah’s experienced team has consistently delivered safe and on time operations
Source: Savannah Energy
GW-215 mast assembly at Bushiya-1 Well Site
R3 East 3D Seismic
Bushiya-1 Well
Amdigh-1 Well
FTG Acquisition
No lost time incidents? ✓ ✓ ✓ ✓
Performance vs. budgeted
time? 87%78% 81%
97%
72% 75%
95%
Budgeted time
Date 2014/15 2016/17 2018 2018
Kunama-1 Well
2018
✓
Eridal-1 Well
2018
✓
Zomo-1 Well
2018
✓
12Savannah Energy PLC | Corporate Presentation 2020
Drilling rationale and forward plans
Why R3 East first?
Source: Savannah Energy.
• R3 East benefits from a very high historic success rate from the surrounding offset wells (93%)
• Discoveries along trend share the same trap and seal configuration as the prospects in R3 East
• Located in close proximity to the existing ARB production infrastructure and logistical hubs
Forward drilling plans
• Initial focus to be the R3 East (drilling production wells) and R3 Central (exploration wells) areas
R3 EastR3 Central
13Savannah Energy PLC | Corporate Presentation 2020
Proposed early production scheme – R3 East
Source: Savannah Energy, Government of Niger.
Phase I – Trucking
• Expected to deliver a plateau of c.1,000 bopd+ from initial well testing
• Surface processing equipment procured on a rental basis initially
• Oil to be trucked c.120km to the Goumeri/Jaouro export station, then piped to the Zinder refinery (using the existing 463km Agadem-Zinder pipeline)
Phase II – Pipeline
• Central Processing Facility (“CPF”) expected to be constructed at Amdigh, planned to be linked to a gathering system to enable proximal fields (e.g. Bushiya, Kunama, Eridal) to be tied into the CPF
• Planned construction of a c. 90km pipeline between the CPF and the Goumeri/Jaouroexport station, enabling production to ramp up to 5,000 bopd following completion of pipeline construction
• Niger-Benin export pipeline (expected to cross R3 area) provides an additional monetisation route for existing and future discoveries
Oil Export5kbd
3-phase separator
Amdigh wells
Water pit
Fuel gas
LegendMixed streamOilWaterGas
15,000 bblstorage tank
Fiscal meter
Other wells
Early Production Facilities to be located at Amdigh
Koulele
Zinder refinery20kbpd capacity
SAVP Offloading
station
14Savannah Energy PLC | Corporate Presentation 2020
ARB infrastructure
Infrastructure position
• Aggregate investment in the Niger oil and gas industry in the last 10 years has been in excess of US$5bn
• The ARB has been in production since 2011, with the China National Petroleum Corporation (“CNPC”) operated Agadem PSC Exclusive Exploitation Area (“EEA”) 1 selling produced oil to the Zinder refinery (Société de Raffinage de Zinder, “SORAZ”) via the Agadem to Zinder pipeline
• SORAZ has a nameplate capacity of 20kbd, however is currently operating with excess capacity
• CNPC was granted a new EEA in June 2018 which will see significant additional infrastructure installed on the eastern flank of the basin and will enable the commencement of exports (expected to begin end-2021)
• Recent launch of Niger-Benin export pipeline by CNPC, their largest ever cross-border crude oil pipeline investment, expected to run for c.2,000 from the ARB in Niger to Port Seme on the Atlantic Coast in Benin
• Under the terms of the R1/R2 and R3/R4 PSCs, the Petroleum Code of Niger and its Implementing Decree, Savannah has rights of access to third party infrastructure
Savannah focus
• Timely generation of cash flow from discoveries is a key priority for Savannah, with current focus around the potential creation of an Early Production System aiming to monetise up to 5 kbd of production
Existing infrastructure
Proposed Niger-Benin pipeline route
Source: Savannah Energy, Government of Niger.
Port Seme
15Savannah Energy PLC | Corporate Presentation 2020
Launch of Niger-Benin export pipeline (1)
• In September 2019, CNPC launched the construction of a crude oil export pipeline from the Agadem Rift Basin (“ARB”) to the Atlantic coast in Benin
Two key pipeline launch ceremonies• 15 September 2019 – Transportation Convention signature ceremony
• Hosted in Niamey, Niger’s capital city
• The Transportation Convention sets out the contractual terms between CNPC and the Republic of Niger under which the pipeline will be constructed and operated
• Signed by Niger’s Minister of Petroleum, His Excellency Mr. Foumakoye Gado and the President of CNPC Exploration and Development Company (CNPC’s overseas development arm, “CNODC”) Mr. Wang Zhong Cai
• Follows the signature in August 2019 of the Niger-Benin Pipeline Construction and Operation Agreement between CNPC and the Republic of Benin, as well as the upstream approval granted by the Republic of Niger to CNPC in June 2018 in relation to the Agadem Production Sharing Contract (“PSC”) Exclusive Exploitation Area 3, the production from which is expected to be exported from Niger using the pipeline
• 17 September 2019 – “First Stone” ceremony
• Hosted at Koulele, Agadem
• Pipeline surface infrastructure works officially launched by His Excellency President Mahamadou Issoufou of Niger
Key pipeline details• CNPC’s largest ever cross-border crude oil pipeline investment (expected to be c.US$7bn); HE President Mahamadou Issoufou confirmed that the pipeline is the most important project
in Niger’s post-independence history
• Expected to run for c.2,000km from the ARB in Niger to Port Seme on the Atlantic coast in Benin (1,298km in Niger, 684km in Benin)
• CNPC has given pipeline completion guidance of end-2021
16Savannah Energy PLC | Corporate Presentation 2020
Launch of Niger-Benin export pipeline (2)
Transportation convention signature ceremonyFront row, L-R: Mr. Wang Zhong Cai (President of CNODC), His Excellency Mr. FoumakoyeGado (Niger Minister of Energy and Petroleum)
Back row, L-R: His Excellency Zhang Lijun (Chinese Ambassador to Niger), His Excellency BrigiRafini (Prime Minister of Niger)
Transportation convention signature ceremonySavannah’s team congratulates Mr. Bachir Abara Djika, the Niger Minister of Energy & Petroleum’s Chief of Staff, who led Niger’s negotiation team during the Transportation Convention talks.
L – R: Mr. Bachir Abara Djika, Yacine Wafy (Savannah Niger Country Manager), Yannick Le Bloa (Savannah Niger Operations Manager) and Mahamane Annou (Supply Chain Manager)
17Savannah Energy PLC | Corporate Presentation 2020
Launch of Niger-Benin export pipeline (3)
First stone ceremonyHis Excellency President Mahamadou Issoufou of Niger and Mr. Wang Zhong Cai (President of CNODC) at the first stone ceremony in Koulele
First stone ceremonySavannah’s team of Mohamed Souleymane (Transport Supervisor), Idriss Nano Jika(Jaouro Camp Manager), Moïse Chetima (HSE Officer) and Mohamed Silimane (Director of PR and Stakeholder Relations) greet His Excellency President Mahamadou Issoufou on his arrival at Agadem
18Savannah Energy PLC | Corporate Presentation 2020
Niger – the key questions answered
Note: this list is in summary form and not necessarily exhaustive.
Financing
Financing delivered for all Savannah ARB operations (FTG, 3D seismic acquisition, five well drilling campaign) ✓
Next phase of operations (R3 East well testing) expected to be funded through cash inflows following completion of Seven Energy Transaction ✓
Geological & Subsurface
Construction of subsurface model based on large database (including c.30,000km 2D seismic, c.13,000km2 3D seismic and > 250 well data suites), providing an in depth understanding of the ARB subsurface and technical risks
✓
Five discoveries from five exploration wells drilled to date (100% success rate) ✓
Operational
All Savannah ARB operations delivered with no lost-time incidents ✓
All Savannah ARB operations delivered within budgeted time ✓
Commercialisation & Monetisation
MOU signed with Government of Niger in relation to the transportation and sale of R3 East production to the Zinder refinery ✓
Recent launch by CNPC of the Niger-Benin oil export pipeline, providing a large-scale basin export route ✓
19Savannah Energy PLC | Corporate Presentation 2020
Niger assets – proven operating model with material upside
Source: Savannah Energy.
5 out of 5Exploration successes
146Savannah
mapped leads and prospects
Existing infrastructure and potential early production system
Proven operating environment & strong
cost management discipline
C.80%Basin exploration
success rate
~US$1/bblBasin finding cost
20
Nigeria
21Savannah Energy PLC | Corporate Presentation 2020
1. Source: Wood Mackenzie, upstream data tool 2017-q3. For Nigerian historic net cash flow/capex, analysis conducted by Hannam & Partners, based on 10 year moving average.
2. Source: Wood Mackenzie, upstream data tool 2017-q3. Majors’ include Chevron, Eni, ExxonMobil, Shell and Total.
3. Source: BP statistical review June 2019, excludes Venezuela’s Orinoco Belt and undeveloped Canadian oil sands. 4. Source: USGS assessment of undiscovered oil and gas resources of the Niger delta province, Nigeria and Cameroon, Africa – 2016.
Why Nigeria?
Strong cash return jurisdiction
• Close to US$100bn in net free cash flow generated in country by contractors since 19651
• Nigeria has driven on average 16% of the majors’ upstream cash flows over the past 10 years2
World class geology
Strongrelationships
and local understanding
0.8x
1.0x
1.2x
1.4x
1.6x
1.8x
2.0x
1975 1982 1989 1996 2003 2010
Average – 1.4x
Cash Flow Neutrality
Nigerian historic net cash flow/capex1 Nigerian creaming curve by well
-
20
40
60
80
• Nigeria the 11th largest global hydrocarbon province, with proved reserves > 38 bn bbls oil and > 189 tcf gas3
• Significant upside remains, with estimated YTF resources of 25 bn boe4
No of wells
Curve not yet creamed
bn boe
Prime market for consolidation
• Smaller companies actively seeking partners and/or equity investments
• Major oil companies’ divestment programmes expected to continue
No. of undeveloped onshore oil & gas fields by size1
Established oil & gas industry
• Average annual oil & gas capex US$7bn1
• Most major service companies represented and present in country
Nigerian historic annual capex spend1
-
50
100
150
< 50 50 > 100 100 > 200 200 +
No. of fields
mmboe
151 undeveloped oil & gas fields onshore Nigeria
-
5,000
10,000
15,000
20,000
25,000
1965 1975 1985 1995 2005 2015
US$m
US$365bn invested since 1965
22Savannah Energy PLC | Corporate Presentation 2020
- 1.00 2.00 3.00 4.00 5.00 6.00
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
CPR weighted average forward gas price (upstream)
CPR weighted average forward gas price (downstream)
-
5
10
15
20
25
2020 2021 2022 2023
95%5%
Non-Investment grade
Investment grade
Net share of gas take-or-pay
volumes(19.5 kboepd)
Nigeria – upstream assets overview (1)
1. Source: CGG Services (UK) Ltd Nigeria CPR, December 2019
2. Source: Savannah Energy.
CPR portfolio 2P net production profile (oil & gas)1 CPR weighted average forward gas price1 2020-23E revenue split2
4
67
Liquids Gas
59
Gas
712P mmboe
592C mmboe
CPR net 2P reserves and 2C resources1
kboepd $/mcf
23Savannah Energy PLC | Corporate Presentation 2020
Nigeria – Accugas overview
1. Source: GIZ 2015 (FMP and power holding company of Nigeria data and UN 2010 rural/urban population data for off grid projections).
Significant spare infrastructure capacity
• Gas processing facilities at Accugas viewed to have c.25% upside for additional gas throughput vs. current contracted volumes
• c.160% additional throughput upside in Accugas pipeline network vs. current contracted volumes
Advantaged position
• Accugas is the only significant gas processing and transportation infrastructure in south east Nigeria
• c.40 tcf undeveloped gas located in the surrounding area
• Savannah holds an 80% interest in Accugas, with 20% owned by private equity investor African Infrastructure Investment Managers (“AIIM”)
• Business model focused around addition and ramp-up of new customers, including power stations (e.g. FIPL) and high margin industrial customers
3.88
>15
0
5
10
15
20
Accugas Realised Gas Price Diesel Price0
200
400
600
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
$/mcf Grid + Off-Grid Demand, TWh
Huge energy demand growth forecastCompelling switching economics
Projected energy demand in Nigeria1
Significant volume and margin uplift potential
24
Corporate
25Savannah Energy PLC | Corporate Presentation 2020
Board of Directors
Steve Jenkins,Chairman
• A geologist by profession, Steve is widely recognised as one of the most capable oil and gas executives in the UK
• Previously Founder and CEO of Nautical Petroleum which was sold for £414m to Cairn Energy, currently Chairman of the Oil and Gas Independents Association
• Significant emerging markets experience, having operated in Morocco, Kazakhstan, Venezuela, Yemen, Colombia and Tunisia
Rt. Hon. Sir Stephen O’Brien, Vice Chairman
• Served as UN Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator (2015 – 2017) and British MP (1999 - 2015), holding the positions of Permanent Under-Secretary of State for International Development and UK Special Representative for the Sahel
• Previously served as International Director and Group Secretary of FTSE 100 listed Redland plc, initially trained as a corporate litigation lawyer with Freshfields
• Member of the UK Privy Council, knighted in 2017 for his achievements and commitments to humanitarian action, global health and international development
Andrew Knott, CEO
• CEO and founder of Savannah Energy, Andrew has led Savanah from its inception to the company’s entry to both Niger and Nigeria
• Strong focus around operational and strategic delivery and the management of internal and external stakeholder relations
• Previously Head of Global Energy Investments for GLG Partners, prior to which he held various roles at Merrill Lynch and DrKW
IsatouSemega-Janneh, CFO
• Accountant with over 17 years’ experience, Isatou joined Savannah as VP Finance in 2015, before joining the Board as CFO in December 2017
• Prior to joining Savanah, spent 9 years with BP in a variety of roles, most recently as Financial Controller for BP’s operations in North Africa
• Extensive experience of implementing and managing financial and regulatory compliance systems in emerging market oil and gas environments
David Clarkson, NED
• Over 40 years’ experience in the oil & gas industry, mainly at BP where he was SVP for Projects & Engineering (Upstream) and a member of BP’s Leadership Team
• Acted as the Company’s COO between June 2018 and December 2019
• Delivered major projects in frontier areas prior to holding the SVP role in which he was functionally accountable for embedding rigour and discipline in BP’s Upstream major project investment decisions and for building engineering capability to support the company’s growth agenda
• Chartered Engineer and Fellow of the Institution of Mechanical Engineers
Mark Iannotti, NED
• Over 25 years’ experience in EMEA equities, largely focused around the oil & gas sector
• Previously a member of Bank of America Merrill Lynch’s EMEA Executive Committee, and started his career at Wood Mackenzie as an upstream analyst focused on emerging markets
David Jamison,NED
• David has had a long career in the oil & gas industry, having acted as Co-Founder and first Managing Director of Vitol (the world’s largest oil trading company)
• Other prominent oil & gas companies David has been a Founding Director of include Sibir Energy and Blue Ocean Associates
Michael Wachtel, NED
• Head of UK Corporate, Head of Energy and Natural Resources and an executive Member of the Management Board of law firm Clyde & Co who have a strong emerging market focus and provide companies with a full range of legal services including corporate, M&A, financing, governance and regulatory compliance
• His client list includes major oil & gas and oil service companies in addition to many of the leading independent oil companies
• Prior to entering law, Michael worked as an oil & gas field engineer in various West African countries for Schlumberger and Geoservices
26
Appendix
27Savannah Energy PLC | Corporate Presentation 2020
Savannah post-transaction corporate structure
Note that summary of Savannah key debt facilities table is not exhaustive. All debt facilities are non-recourse to Savannah Energy PLC unless otherwise stated
1. Debt at SUGL includes the SUGL Notes and Working Capital Facility.
2. Accugas debt includes the Accugas Term Facility, the Promissory Note and SSN participation notes
Oragroup Revolving Loan Facility SUGL Accugas
Facility size €11.4m US$96.6m US$370.6m
Tenor (years) 3 7 7
Maturity December 2022 December 2026 December 2026
Interest Rate 7.5% 8% cash USD LIBOR + 10.43%
Amortisation Bullet at maturity US$12.6m p.a. Semi-annual amortisation schedule plus
cash sweep
Security Parent company guarantee Uquo, Stubb Creek Accugas
Simplified corporate structure chart
Capital structure – Savannah key debt facilities
Savannah Niger Savannah Nigeria
Stubb Creek Uquo Accugas
US$402.1m Debt2
80% 20%
US$109.3m Debt1
€11.4m OragroupRevolving Loan Facility
80%20%
28Savannah Energy PLC | Corporate Presentation 2020
Niger – key facts
Source: World Bank, EIU, Savannah Energy, Reporters without borders.
• 2018 population of 22.4m people (56th largest population in the world)
• Landlocked country in West Africa covering 1,266,700km2 (19th largest country in the world)
• Terrain mainly desert, with arable land in the South West and South East
• Former French colony, now boasts a “real” multi-party democratic system of government
• Centre Left government, pro-Foreign Direct Investment
• Significant French (cultural/economic/military), Chinese, Canadian (both economic) and US (economic/military) influences
• Strong and free press, ranked 66 out of 180 in Reporters Without Borders 2019 World Press Freedom Index
• 2018 GDP of US$9.2bn, economy focused around subsistence agriculture and raw commodity export
• Current oil production capacity of 20kbd, product sold domestically and also exported to northern Nigeria
29Savannah Energy PLC | Corporate Presentation 2020
Niger – key economic statistics
2010-18 average GDP growth rate 2018 GDP per capita Foreign direct investment, net inflows (current US$m)
2000 2005 2010 2015 2016 2017 2018
Population, total (millions) 11.3 13.6 16.4 20.0 20.67 21.6 22.4
Population growth, annual (%) 3.6 3.7 3.8 3.9 3.9 3.8 3.8
GDP (current US$bn) 1.8 3.4 5.7 7.1 7.5 8.1 9.2
GDP growth, annual (%) (1.4) 4.5 8.4 4.3 4.9 4.9 5.2
Inflation, GDP deflator (annual %) 4.5 6.6 3.0 0.6 (0.3) 0.9 3.3
External debt stocks, total (current US$m) 1,721 1,962 1,551 2,239 2,535 3,059 3,260
Foreign Direct Investment, net inflows (current US$m) 16 50 796 529 301 338 460
Net official development assistance and official aid received (current US$m) 209 523 741 868 951 1207 Not available
0
4,000
8,000
12,000
World Sub-SaharanAfrica
Niger
0
3
6
9
World Sub-Saharan Africa Niger
0
300
600
900
2000 2005 2010 2015 2016 2017 2018
US$mUS$%
Source: World Bank, EIU.
30Savannah Energy PLC | Corporate Presentation 2020
Nigeria – key facts
Source: World Bank, EIU, Nigerian National Bureau of Statistics, 2017
• With approximately 196 million inhabitants, Nigeria accounts for 51% of West Africa’s population
• West African country, bordering Benin, Niger, Chad, Cameroon and the Gulf of Guinea, covering 910,770km2 (29th largest country in the world)
• Largest economy in Africa, with 2018 GDP of US$397bn (with the oil and gas sector accounting for c.90% of its export earnings)
• Political federation that consists of 36 autonomous states, and a multi-ethnic and culturally diverse society. With an abundance of natural resources
• Nigeria is Africa’s biggest oil exporter; the country also has the largest natural gas reserves on the continent
• Current oil production 2.051 million bbl/day (2018 est.) (12th largest in the world)
31Savannah Energy PLC | Corporate Presentation 2020
Nigeria – key economic statistics
2010-18 Average GDP growth rate 2018 GDP per capita Foreign direct investment, net inflows (current US$b)
2000 2005 2010 2015 2016 2017 2018
Population, total (millions) 122 139 159 181 186 191 196
Population growth, annual (%) 2.5 2.6 2.7 2.6 2.6 2.6 2.6
GDP (current US$bn) 69.4 176.1 363.4 494.6 404.6 375.7 397.3
GDP growth, annual (%) 5.0 6.4 8.0 2.7 (1.6) 0.8 1.9
Inflation, GDP deflator (annual %) 22.7 19.9 16.3 2.9 9.5 11.1 10.2
External debt stocks, total (current US$, billions) 32.4 25.8 15.5 28.7 30.7 39.8 46.2
Foreign Direct Investment, net inflows (current US$bn) 1.1 5.0 6.0 3.1 4.4 3.5 2.0
Net official development assistance and official aid received (current US$m) 174 6,402 2,052 2,432 2,498 3,359 Not available
0
4,000
8,000
12,000
World Sub-SaharanAfrica
Nigeria
0
3
6
World Sub-Saharan Africa Nigeria
0
1
2
3
4
5
6
7
2000 2005 2010 2015 2016 2017 2018
US$bUS$%
Source: World Bank, EIU.
32Savannah Energy PLC | Corporate Presentation 2020
Overview of Niger key PSC terms
• Signature bonus and related expenditure:
• US$34m R1/R2 (40% cost recoverable)
• US$28m R3/R4 (60% cost recoverable)
• Royalties:
• Oil – 12.5%
• Gas – 2.5%
• Cost Oil:
• Recovery of 100% of capital and operating costs (capped at 70% of net after royalty revenue) per annum
• Excess costs carried forward to future years in a cost oil pool
• Profit Oil:
• 60 – 45% depending on R-factor (cost oil plus profit oil, less cumulative exploitation costs) / (cumulative exploration costs plus cumulative development costs)
• No corporation tax
• State free carry back-in right
• R1/R2 20% of profit oil
• R3/R4 15% of profit oil
Source: Government of Niger, Savannah Energy.
R-Factor Contractor State
< 1 60% 40%
1 – 1.49 55% 45%
1.5 – 1.99 50% 50%
> 2 45% 55%
Contractor State Contractor
Cost OilProfit Oil
Net Revenue After Royalty
33Savannah Energy PLC | Corporate Presentation 2020
Uquo – key gas and condensate fiscal terms
Uquo gas & condensate
Contract Type Marginal Field
License Interest 40%
Paying Interest 100% of gas project costs
Revenue Interest • 100% of condensate revenue
• 100% of gas revenue
Royalty • 2.5 – 18.5% for condensate (sliding scale) for government and ORRI
• 7% for gas
Education Tax • 2%
NDDC Levy • 3%
Tax Regime • PPT (0% until 2019, 85% thereafter) on condensate
• CIT (0% until 2019, 30% thereafter) on gas
Capital Allowance 20% for 4 years + 19% year 5 on tangible capex
Petroleum Investment Allowance
5%
1. Frontier Oil is joint venture partner.
Revenue
Royalty
Cost
Taxes
Profit
Government ORRI
2.5% – 18.5% for condensate
7% for gas
JVEconomics1
2.5% – 7.5% for condensate
34Savannah Energy PLC | Corporate Presentation 2020
Stubb Creek – key fiscal terms
Stubb Creek
Contract Type Marginal Field
License Interest 51%
Paying Interest 20% for oil, 50% for gas
Revenue Interest • 20% of cost oil and 35% of profit oil
• 50% of cost gas and 60% of profit gas
Royalty • 2.5 – 18.5% for liquids (sliding scale) for government and ORRI
• 7% for gas
Education Tax • 2%
NDDC Levy • 3%
Tax Regime • PPT (65.75% until 2020, 85% thereafter) on liquids
• CIT (30%) on gas
Capital Allowance 20% for 4 years + 19% year 5 on tangible capex
Petroleum Investment Allowance
5%
1. Sinopec is joint venture partner.
Revenue
Royalty
Cost Recovery
Taxes
Profit
Government ORRI
2.5% – 18.5% for liquids
7% for gas
JVEconomics1
2.5% – 7.5% for liquids
Savannah
20% oil
50% gas
35% of profit oil
60% of profit gas
Savannah Energy
40 Bank Street
London E14 5NR
T: +44 (0) 20 3817 9844
www.savannah-energy.com