By Eromosele Abiodun
Savannah Energy Plc, the British independent energy company has announced its unaudited preliminary results for the 2019 financial year.
The company in a statement said the numbers included approximately six weeks of operations in Nigeria, following the successful acquisition of Nigerian assets in November 2019, together with a financial and operational update for the first half of 2020.
The company said it recorded full year 2019 maiden revenues of $17.8 million comprising $16.9 million of gas sales and $0.9 million of liquids sales.
It added that production from its Nigerian Assets for 2019 rose 32 per cent to 17.2 Kboepd from 13.0 Kboepd in 2018.
Chief Executive Officer (CEO) of Savannah Energy, Andrew Knott said: “2019 was a pivotal year for our company. We completed the Nigerian asset acquisition in November 2019, which transformed Savannah into a highly cash flow generative full cycle energy company.
“Since acquiring the Nigerian assets, we have made significant strides in terms of operational and financial progress, as seen with the strong production figures and robust cash collections in the first half of 2020, further strengthened our leadership team and stand poised to capitalise on the numerous opportunities that our asset portfolio in Nigeria and Niger presents us with.
“In the first half of 2020, cash collections from the Nigerian assets stood at $82.1 million compared to $55.3 million within the same period in 2019. Average gross daily production, of which 89 per cent was gas, increased 18 per cent during the first half of 2020 to 21.3 Kboepd compared to 18.1 Kboepd in 2018.”
Savannah Energy said its operations in Nigeria have seen it make significant contribution to power supply in the country.”
It added: “Accugas’ customers achieved an all-time record peak contribution of 11.5 per cent of Nigeria’s electricity generation or 486MW on 23 May 2020, with the contributed electricity being exclusively generated from Accugas sales gas. As announced on 31 January 2020, Accugas entered into the first new gas sales agreement for the business in over five years with First Independent Power Limited (FIPL), an affiliate company of the Sahara Group, for the provision of gas to the FIPL Afam Power Plant (FIPL Afam). Accugas is in the process of working with FIPL to validate the third-party infrastructure required to enable the commencement of gas sales under this contract.”