Savannah Energy Posts Strong Q1 2025 Performance

Savannah Energy Plc, the British independent energy company focused around the delivery of Projects that Matter in Africa,  has  trading update for first quarter(Q1) of 2025.

According to a statement, the Q1 2025 unaudited results showed a strong financial performance, with the company’s total revenue increasing by 19 per cent 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 six per cent 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.

Commenting, Chief Executive Officer  of Savannah Energy, Andrew Knott, said: “I am pleased to provide a Q1 2025 trading update, highlighting good progress in our core objectives for the year, including a 19 per cent 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  has increased by approximately 15 per cent and 2P oil reserves have been upgraded by 29 per cent. 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: securing a further increase in our rate of cash collections in Nigeria;  completion of the refinancing of our principal Nigerian debt facilities; completion of the planned acquisition of 100 per cent of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC Acquisition) which was achieved during Q1 2025;  commencement of the Stubb Creek expansion project; the advancement of our Chad/Cameroon arbitration processes;  the commencement of the safe and successful drilling of our planned Uquo development well and potential Uquo exploration well;  the potential advancement of our R3 East development in Niger; the refinement of our power sector business model; and  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 per cent CAGR), with significant production capacity growth expected in 2026 once our heavy Uquo field investment programme is completed.”

In terms of operations,  the company’s  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 per cent 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 per cent and 29 per cent 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 per cent 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.