Savannah Energy has increased its hydrocarbon production following the acquisition of the Sinopec International Petroleum Exploration and Production Company Nigeria Limited.
The company stated this while announcing its trading update for the first quarter of the year.
According to the statement, the Q1 2025 unaudited results showed a strong financial performance, with the company’s total revenue increasing by 19 per cent to $73.3m, compared to $61.4m in Q1 2024.
This was reportedly driven by the successful completion of the SIPEC acquisition and expansion of the Stubb Creek oil field, which contributed approximately $3.6m of the revenue.
The report also showed that the company’s cash collections in Q1 2025 increased by six per cent to $124.8m compared to $117.7m in Q1 2024.
As of 31 March 2025, Savannah’s cash balances stood at $110.4m, compared to $32.6m as of 31 December 2024, while net debt during the period stood at $597.8m, down from $636.9m by year ending 2024.
The firm said this included debt associated with the SIPEC acquisition, which, if excluded, would have further reduced to $570m
In terms of operations, its average gross daily production in Nigeria for the period stood at 23.6 Kboepd.
The report further explained, “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 $45m 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.
It added that 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.
This well is forecast to provide gas volumes of up to 80 million standard cubic feet per day.
It was learnt that an additional exploration well in the Uquo Field is also under consideration, saying it may be drilled back-to-back with the Uquo NE well.
“Uquo South is well-targetargeting an Unrisked Gross GIIP of 154 bscf of incremental prospective gas resources in the Uquo licence area,” the statement added.
The 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 $125m 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.”