Savannah Petroleum subsidiary inks rig contract

Savannah Petroleum said a subsidiary has signed a formal rig contract with Great Wall Drilling Company Niger SARL (GWDC) for Rig GWDC 215.

It said the contract provided for a programme of three firm wells, and included options for a further six wells, which would be exercised individually at Savannah's discretion.

The company also announced the signature of other contracts with GWDC for ancillary drilling services, including cementing, drilling fluids, tubular running, mudlogging and wireline logging.

Chief executive Andrew Knott said the signature of these agreements with contracting partner GWDC represented a key milestone towards the start of its drilling campaign in the R3 area.

At 13:54 BST, shares in AIM-quoted Savannah Petroelum were up 4.6% to 39.75p each.