Savannah Petroleum losses widen throughout 'very busy' first half

Savannah Petroleum's net loss widened significantly during its "very busy first half".

The AIM-listed resource company saw its net loss widen 202% to $17.52m and losses per share deepen to 0.03p from the 0.02p turned in a year ago as a result of rocketing operating costs - up 223% year-on-year to $19.25m.

Savannah also successfully delivered its drilling campaign in South East Niger within budgeted time, with no lost time incidents, making two oil discoveries at Bushiya and Amdigh in the process.

The group also revealed that it had made "strong progress" on the acquisition of certain oil and gas assets in South East Nigeria from Seven Energy following the successful completion of a $125m equity placing.

Following the end of the priod, Savannah and the Government of Niger agreed to install an EPS on R3 East, which will see initial production from the outfit's discoveries sold into the domestic market.

"We continue to see significant resource potential on our wider Niger acreage," said chief executive Andrew Knott.

In other news, Savannah strengthened its executive management team with the appointment of David Clarkson to the role of chief operating officer to help steer the group through this "exciting time".

As of 1145 BST, Savannah shares had shot up 10.74% to 33p.