Savannah Energy Plc has announced its unaudited trading update for first quarter (Q1) 2025; revealing a 19 per cent year-on-year increase in total revenue to $73.3 million, up from $61.4 million in Q1 2024.
This growth was driven by the successful acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC) and expansion at the Stubb Creek oil field, which contributed approximately $3.6 million to revenue.
Cash collections for the quarter rose six percent to $124.8 million, compared to US$117.7 million in the same period last year. Cash balances increased significantly to $110.4 million as of 31 March 2025, from $32.6 million at the end of 2024. Net debt stood at $597.8 million, or $570 million excluding SIPEC acquisition-related debt, down from $636.9 million at year-end 2024.
In Nigeria, Savannah’s average gross daily production was 23.6 Kboepd, nearly in line with Q1 2024 (24.1 Kboepd). Following the SIPEC acquisition, production at Stubb Creek rose by 15per cent in April 2025 to 3.1 Kbopd, up from 2.5 Kbopd in Q1 2024. A new 18-month expansion program is underway, targeting increased output to 4.7 Kbopd.
The company also reported a 197per cent and 29 per cent increase in 1P and 2P reserves respectively at Stubb Creek, due to enhanced reservoir monitoring and advanced modelling techniques. This follows a similar 27percent boost in Uquo Field 2P reserves in 2021.
Progress continues on a $45 million compression project at the Uquo Central Processing Facility, with one compressor online and the second expected by the end of next month. The project is on track for early completion and under budget.
Looking ahead, Savannah plans to launch a two-well drilling campaign at the Uquo Field in Q4 2025. The Uquo NE development well is forecast to deliver up to 80 MMscfpd of gas, with a second exploration well, Uquo South, under consideration. Uquo South could unlock 154 Bscf of unrisked gross prospective gas resources.
CEO Andrew Knott expressed confidence in the company’s momentum, stating: “We’ve delivered a 19per cent revenue increase and continued strong cash collections in Q1. Production and reserve upgrades at Stubb Creek mark important progress, and our planned drilling campaign at Uquo has the potential to add further value.”
In Niger, Savannah is preparing to advance the R3 East oil development, which holds 35 MMstb of Gross 2C resources. With the Niger-Benin pipeline now operational, the company sees a viable export route. A four-well testing programme may commence by the end of 2025, subject to stakeholder agreements, at an estimated cost of $14.5 million.
McDaniel & Associates Consultants Ltd. has been appointed to produce updated Competent Person’s Reports (CPRs) on the group’s oil and gas assets. Their updated assessment of Stubb Creek indicates improved reserve certainty, with a reduced gap between 1P and 3P estimates, reflecting the asset’s maturity.
Knott reiterated the company’s commitment to its 2025 objectives, including completing transformational acquisitions, advancing new developments, and boosting production capacity into 2026.
