Savannah Energy Plc has provided update on its operating and financial performance for the seven months to July 31, 2025. The update shows that its gross production in Nigeria averaged 21.0 Kboepd (7M 2024: 24.3 Kboepd), of which 86 percent was gas (7M 2024: 89 percent). Its total revenue during the period was $147.3 million, up by 4 percent compared to the total revenues of $142.1 million in the first seven months in 2024.
The company also reported a 37 percent increase in cash collections year-on-year (YoY) and a 12 percent improvement in the trade receivables balance compared to YE24. Cash collections for the seven months to July 31, 2025 were $219.2 million, compared to $160.0 million in the same period in 2024. Its trade receivables balance as of July 31, 2025 stood at $476.4 million (YE24: $538.9 million).
As of July 31, 2025, cash balances were $93.7 million (YE24: $32.6 million) and net debt stood at $591.9 million (YE24: $636.9 million). This included debt associated with the SIPEC Acquisition and, which if excluded would have further reduced the net debt to $549.5 million. It noted that only 6percent of outstanding debt as of 31 July 2025 is recourse to Savannah, with the balance sitting within subsidiary companies on a non-recourse basis.
Operationally, Savannah has signed a turnkey drilling contract for up to two wells on the Uquo Field, with the Uquo NE development well due to start drilling in January 2026 and first gas targeted by the end of Q1 2026. Uquo NE is forecast to provide up to 80MMscf/d of gas and will utilise the recently commissioned Uquo compression project, achieved 10percent below budget, allowing Savannah to maximise the production from both its existing and future gas wells. Its Stubb Creek asset continues to perform well, buoyed by the ongoing production expansion, with current daily production of 3.2kbopd, up 20percent on 2024, and is targeting further increases in production as it progresses the planned expansion programme there.
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According to the update, the refinancing of its US dollar debt within its Accugas subsidiary is ongoing with an agreement close to being finalised with a consortium of five Nigerian banks to secure an increase in the Nigerian facility to N772billion (approximately $503 million) to allow Accugas to repay its remaining circa $200million of US dollar-denominated debt during H2 2025.
As it previously announced, Savannah is in the process of refining its Power Division business model, the remit of which has now been expanded to include potential thermal as well as potential renewable energy projects. It continues to progress its existing portfolio of up to 696 MW of wind, solar and hydroelectric projects, with its principal focus projects being the up to 250 MW Parc Eolien de la Tarka wind farm project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon.
Its Parc Eolien de la Tarka project has made significant progress in the year to date, with Niger’s Minister of Energy confirming that the project is on the Government’s list of priority projects, as Savannah continues to progress the additional Environmental and Social Impact Assessment (ESIA) field work studies required for the full ESIA, which it expect to complete and submit to the relevant authorities in H2 2025. The Company is negotiating outline terms in relation to the project’s proposed power purchase agreement and continue to work on the project in close collaboration with the International Finance Corporation (World Bank) and the US International Development Finance Corporation.
Negotiations with the Government of Cameroon are at an advanced stage regarding a Joint Development Agreement for the up to 95 MW Bini a Warak project. This is expected to replace the Memorandum of Agreement signed in April 2023 and secure the terms under which Savannah will collaborate with the Government of Cameroon to develop the project further.
Andrew Knott, CEO of Savannah Energy, said: “I am pleased to provide a trading update for the first seven months of 2025, highlighting Total Revenues of $147.3 million and good progress in our core objectives for the year, including a 37percent increase in cash collections year-on-year, with almost $220 million collected in the year to date, and a 12 percent improvement in the Trade Receivables balance compared to year-end 2024.
We are also reporting today that we have signed a turnkey drilling contract for up to two wells on the Uquo Field in Nigeria, with the Uquo NE development well due to start drilling in January 2026 and first gas targeted by the end of that quarter. Uquo NE is forecast to provide gas volumes of up to 80 MMscfpd, which may be followed by the drilling of an exploration well, Uquo South, targeting an Unrisked Gross GIIP of 131 Bscf of incremental Prospective gas Resources. Our Stubb Creek asset continues to perform well, with current daily production of 3.2 Kbopd, up 20 percent on the average level for 2024. We continue to target further increases in Stubb Creek production as we progress the planned expansion programme there.
“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 percent of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (the “SIPEC Acquisition”) which was achieved during Q1 2025; commencement of the Stubb Creek expansion project which was achieved during Q2 2025; 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 look forward to reporting further progress towards the achievement of many of our focus area projects at the time of our half year results in September and in the months that follow,” Knott said.
