Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that
The Q1 2025 Unaudited Results showed a strong financial performance, with the company’s total revenue increasing by 19% to US$73.3 million, compared to US$61.4 million in Q1 2024.
This was driven by the successful completion of the SIPEC acquisition and expansion of the Stubb Creek oil field, which contributed approximately US$3.6 million of the revenue.
The report also showed that its cash collections in Q1 2025 increased by 6% to US$124.8 million, compared to US$117.7 million in Q1 2024. As of 31 March 2025, its cash balances stood at US$110.4 million, compared to US$32.6 million as of 31 December 2024, while net debt during the period stood at US$597.8 million (it was US$636.9m by YE2024).
This included debt associated with the SIPEC Acquisition, which if excluded, would have further reduced to US$570 million.
In terms of operations, its average gross daily production in Nigeria for the period stood at 23.6 Kboepd, broadly in line with the prior year period (Q1 2024: 24.1 Kboepd).
Since the completion of the SIPEC acquisition, Savannah has increased production at Stubb Creek by 15% to 3.1 Kbopd in April 2025.
Gross production at Stubb Creek was 2.5 Kbopd in Q1 2024 and, following completion of the acquisition during the quarter, the company has commenced an up to 18-month expansion programme anticipated to increase gross production to approximately 4.7 Kbopd.
The report also showed an increase of 197% and 29% in Stubb Creek Gross 1P and 2P oil Reserves, respectively, due to an improved ultimate field recovery factor, as determined through the implementation of enhanced field monitoring protocols and advanced reservoir modelling.
This follows a similar 27% increase in Uquo Field Gross 2P Reserves announced in November 2021.
Savannah reports that its US$45 million compression project at the Uquo Central Processing Facility is almost complete, with one compressor online and the second to be commissioned before the end of next month.
The company expects the project to be delivered under budget, which will allow it to maximise production from its existing and future gas wells.
The company said it is currently progressing with the procurement process of long lead equipment in Nigeria in preparation for a potential two-well drilling campaign on the Uquo Field commencing in Q4 2025, with well site and flowline surveys already completed for the Uquo NE development well (“Uquo NE”).
This well is forecast to provide gas volumes of up to 80 MMscfpd. An additional exploration well in the Uquo Field (“Uquo South”) is also currently under consideration, which may be drilled back-to-back with the Uquo NE well. Uquo South is a well targeting an Unrisked Gross GIIP of 154 Bscf of incremental Prospective gas Resources on the Uquo licence area.
Andrew Knott, CEO of Savannah Energy, said:
“I am pleased to provide a Q1 2025 trading update, highlighting good progress in our core objectives for the year, including a 19% increase in Total Revenues, and a continued strong trend in cash collections with almost US$125 million received in the quarter. We are also reporting that, since completion of the SIPEC Acquisition, production at the Stubb Creek oil field (“Stubb Creek”) has increased by approximately 15% and 2P oil reserves have been upgraded by 29%. Our planned Uquo Field drilling campaign, set to commence in Q4, has the potential to add further reserves, resources and production capacity which would be capable of easy and quick monetisation.
2025 continues to be an exciting year for the business and we continue to work towards “ticking-off” the delivery of the nine focus area projects that we outlined at the beginning of the year, being: (1) securing a further increase in our rate of cash collections in Nigeria; (2) completion of the refinancing of our principal Nigerian debt facilities; (3) completion of the planned acquisition of 100% of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (the “SIPEC Acquisition”) which was achieved during Q1 2025; (4) commencement of the Stubb Creek expansion project (which we updated on today); (5) the advancement of our Chad/Cameroon arbitration processes; (6) the commencement of the safe and successful drilling of our planned Uquo development well and potential Uquo exploration well; (7) the potential advancement of our R3 East development in Niger; (8) the refinement of our power sector business model; and (9) the delivery of further transformational acquisitions.
I would also highlight that we anticipate achieving a strong increase in cash collections in 2025 (even when set against our long-term 13% CAGR), with significant production capacity growth expected in 2026 once our heavy Uquo field investment programme is completed.”
Niger Updates
- Niger: Savannah is continuing to seek to progress the 35 MMstb (Gross 2C Resources) R3 East oil development in South-East Niger. The Niger-Benin oil export pipeline, now fully operational, provides a potential route to international markets for crude oil produced from the R1234 contract area of our subsidiary, Savannah Energy Niger SA, with 90 Kbopd reportedly being transported from the China National Petroleum Corporation-operated Agadem PSC area.
- Subject to satisfactory stakeholder agreements being entered into, Savannah Energy Niger SA may commence a four-well testing programme on the Amdigh-1, Eridal-1, Bushiya-1 and Kunama-1 discovery wells by the end of 2025, with all of the required long lead item equipment already in Niger. We are at the pre-contract award stage of the programme and our initial internal estimate of the total cost of the well-test programme is approximately US$14.5 million (this will be subject to change as programme progresses and contracts are awarded).
- Assuming a successful well test programme, we would look to accelerate plans to commence commercial oil production from the R3 East Area and intend to incorporate the data acquired into our field development plan.
Updated Competent Persons Reports
The Company has appointed McDaniel & Associates Consultants Ltd. (“McDaniel”), to prepare updated Competent Person’s Reports (“CPRs”) for the oil and gas assets of the Group.
These reports are anticipated to be finalised and published alongside the Company’s FY 2024 annual report and accounts. McDaniel have completed their assessment for Stubb Creek and a summary of the Gross 1P, 2P, 3P Reserves (prepared in accordance with the 2018 Petroleum Resource Management System), is set out in the table below, along with a comparison vs. the numbers presented in the Company’s March 2024 Nigeria CPR, as adjusted for production since its publication.
The reduced range between the 1P and 3P Reserves demonstrates the lower uncertainty in the Reserves estimates and is a reflection of the maturity of an asset that has now been on production for over 10 years.
