Savannah Energy Records Another Strong Financial Performance As Uquo, Stubb Creek Drive Growth

Ayodeji Ake

Savannah Energy Plc, the British independent energy company focused around the delivery of projects that matter, has once again demonstrated its financial resilience, maintaining its year-on-year growth trajectory across its African operations.

The company’s recently released unaudited operations and financial update for the seven months ended July 31, 2026 highlights continued growth in revenue, stronger cash collections and significant operational progress across its Nigerian asset portfolio.

The report shows that revenue increased by 10 per cent year-on-year to US$160.6 million, compared with US$146.0 million during the same period in 2025. Cash collections in Nigeria also rose by 13 per cent, reaching US$247.9 million, up from US$219.2 million recorded during the first seven months of 2025.

Savannah further strengthened its financial position during the period. Cash balances stood at US$62.0 million as at July 31, 2026, compared with US$42.7 million at year-end 2025. Net debt was US$672.0 million, compared with US$658.8 million as at December 31, 2025.

The company also made significant progress in reducing outstanding receivables. Trade receivables as at July 31, 2026 stood at US$394.6 million, representing a 22 per cent  reduction from US$508.5 million at year-end 2025. These receivables relate primarily to amounts due under various gas sales agreements in Nigeria.

Savannah noted that improving cash collections remains a strategic priority for the business.

Operational Momentum at Uquo

The company’s strong financial performance has been supported by notable operational achievements at its Uquo gas field and rising oil production from the Stubb Creek field in Nigeria.

According to the update, drilling and completion activities at the Uquo 13 well, formerly known as Uquo NE, have been successfully concluded. The well was tied back to the Uquo.

Central Processing Facility, achieved first gas in July and is now on stream, having been successfully tested at approximately 50 million standard cubic feet per day (MMscfd).

Meanwhile, the Uquo South exploration well, which spudded in early August 2026, is currently being completed. Gas has been encountered in most of the targeted reservoirs through pressure measurements, fluid sampling and logging activities. The discovery will be fully evaluated following completion of the well and a planned testing programme.

Group gross daily production averaged 16.3 thousand barrels of oil equivalent per day (Kboepd) during the reporting period, compared with 18.8 Kboepd during the corresponding period in 2025.

However, with Uquo 13 now on stream, Savannah expects average gross daily production to exceed 20 Kboepd over the remaining five months of the year. The company forecasts full- year 2026 average gross daily production to be in the range of 18-20 Kboepd, including potential upside from the Uquo South exploration well.

Stubb Creek Outperforming Expectations

Savannah has delivered production growth at Stubb Creek beyond the levels originally anticipated following its acquisition of Sinopec International Petroleum Exploration and Production Corporation (SIPEC) in March 2025.

At the time of acquisition, Savannah commenced an expansion programme at Stubb Creek anticipated to increase gross production at the field from an average of 2.7 Kbopd in 2024 to approximately 4.7 Kbopd.

Latest results suggest the expansion programme continues to progress well, having already delivered a 29 per cent year-on-year increase in average gross daily oil production to approximately 3.7 Kbopd during the reporting period. In parallel, early works have been fast-tracked to support an accelerated production ramp-up ahead of the broader expansion programme, achieving average gross daily production in July 2026 in excess of 5.0 Kbopd .

Commenting on the results, Chief Executive Officer of Savannah Energy, Andrew Knott, said: “Savannah continues to make strong progress against the nine core focus areas we set out for the business at the start of 2025. In Nigeria, I am particularly pleased that Uquo 13, formerly known as Uquo NE, has achieved first gas and is on stream after having successfully been tested at approximately 50 MMscfd. We are also currently completing the Uquo South exploration well, where we have discovered gas in most of the targeted reservoirs. Following completion of the well, we will undertake further testing and evaluation to assess the significance and potential resource implications of the discovery.

“Financially, we have maintained strong momentum in cash collections, with collections increasing by 13 per cent year-on-year to US$247.9 million during the first seven months of 2026.

“Revenue increased by 10 per cent over the same period, while our trade receivables balance has reduced by 22 per cent since year-end 2025 to US$394.6 million. We have also strengthened our financial flexibility through the increase of the Stubb Creek Reserve Based Lending facility.”

Looking ahead, Knott said Savannah remained focused on delivering further operational progress across its existing portfolio, including continued development at Stubb Creek and the testing and evaluation of the Uquo South discovery. The company is also actively pursuing value-accretive acquisition opportunities across both the hydrocarbons and power sectors.

Savannah has also continued to implement its rolling hedging strategy designed to protect cash flows during periods of oil price volatility. According to the company, it uses mainly financial protection measures that help safeguard revenues when market prices fall. In some instances, it also uses arrangements that keep prices within an agreed range, helping to reduce the impact of sudden market swings. It does not employ swaps or other fixed-price hedging instruments.

For the second half of 2026, Savannah has hedged 325,000 barrels of production using put options with a weighted average strike price of US$52 per barrel. In addition, 215,000 barrels have been hedged using collars with a weighted average floor price of US$59 per barrel and a weighted average ceiling price of US$83 per barrel.

As a result, more than 80 per cent of forecast oil production for the next 12 months retains unlimited upside exposure to higher oil prices, while the remaining volumes are subject to ceiling prices broadly aligned with prevailing market forecasts.

As Savannah moves into the final months of 2026, the company’s robust financial performance, rising production, successful drilling activities and disciplined financial management continue to reinforce its position as one of Africa’s leading independent energy companies.