Savannah Petroleum share suspension lifted after $40m placing

Shares in Savannah Petroleum are up a tickle less than 40% as a temporary suspension on the outfit's shares dating from January was lifted a day after its oversubscribed $40m placing.

"This (placing) is a strong endorsement of our strategy and ensures we are funded to move the assets to the next level of value creation," said chief executive Andrew Knott.

"From here we can now look forward to the imminent recommencement of ground operations with the 3D seismic programme at R3, which will in turn help us maximize the chances of a successful drilling campaign in 2017."

The oil and gas company raised the money via a placing of about 79.8m shares at 38p each.

Niger-focused Savannah requested the suspension in January when it entered a non-binding heads of terms regarding a potential deal, which, if completed, would have been a reverse takeover.

"The board confirms that all discussions on the potential transaction have now been terminated and, in the near term," Savannah said in a statement.

"The company's focus will be on developing and maximising the value of its existing assets."

At 12:16 BST, shares in Savannah Petroleum were up 39.68% to 33p.