Savannah Energy PLC, has declared a strong financial performance, with the company’s total revenue increasing by 19% to $73.3 million, compared to $61.4 million in Q1 2024.
This was driven by the successful completion of the SIPEC acquisition and expansion of the Stubb Creek oil field, which contributed approximately US$3.6 million of the revenue.
In its 2025 unaudited results, the report showed that its cash collections in Q1 2025 increased by 6% to $124.8 million, compared to $117.7 million in Q1 2024. As of 31 March 2025, its cash balances stood at $110.4 million, compared to US$32.6 million as of 31 December 2024, while net debt during the period stood at $597.8 million (it was US$636.9m by YE2024). This included debt associated with the SIPEC Acquisition, which if excluded, would have further reduced to $570 million.
In terms of operations, its average gross daily production in Nigeria for the period stood at 23.6 Kboepd, broadly in line with the prior year period (Q1 2024: 24.1 Kboepd).
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Since the completion of the SIPEC acquisition, Savannah has increased production at Stubb Creek by 15% 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% and 29% 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% increase in Uquo Field Gross 2P Reserves announced in November 2021.
Savannah reports that its $45 million 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.
The company said 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 MMscfpd. An additional exploration well in the Uquo Field (Uquo South) is also currently under consideration, which may be drilled back-to-back with the Uquo NE well.
Uquo South is a well targeting an Unrisked Gross GIIP of 154 Bscf of incremental Prospective gas Resources on the Uquo licence area.
Savannah Energy Chief executive officer, 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% increase in Total Revenues, and a continued strong trend in cash collections with almost US$125 million received in the quarter.
“We are also reporting that, since completion of the SIPEC Acquisition, production at the Stubb Creek oil field (“Stubb Creek”) has increased by approximately 15% and 2P oil reserves have been upgraded by 29%. 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”, he said
