By Ayomide Otitoju
Savannah Energy PLC, a British independent energy company, has announced a 15% increase in oil production at its Stubb Creek field, reaching 3.1 thousand barrels of oil equivalent per day (Kboepd) in April 2025, following the successful completion of its acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC).
According to the company’s Q1 2025 unaudited results released this week, gross production at Stubb Creek had stood at 2.5 Kboepd in Q1 2024. With the acquisition completed during the quarter, Savannah has launched an 18-month expansion programme targeting an increase in gross production to 4.7 Kboepd.
The company also reported substantial upgrades to the field’s reserves, with Gross 1P and 2P oil reserves rising by 197% and 29%, respectively. This growth is attributed to improved ultimate recovery factors, achieved through advanced reservoir modelling and enhanced field monitoring protocols.
In Nigeria’s Uquo Field, Savannah’s $45 million compression project at the Central Processing Facility is nearing completion. One compressor is already online, while the second is scheduled for commissioning by the end of June. The project, expected to come in under budget, will allow the company to maximise production from current and future gas wells.
Savannah is also preparing for a potential two-well drilling campaign at the Uquo Field in Q4 2025. Surveys for the Uquo NE development well have been completed, and the well is projected to produce up to 80 million standard cubic feet per day (MMscfpd) of gas. An additional exploration well, Uquo South, is under consideration and may be drilled consecutively. Uquo South targets an unrisked Gross GIIP (Gas Initially In Place) of 154 billion standard cubic feet (Bscf) of prospective gas resources.
Financial Highlights
The company posted a 19% year-on-year increase in total revenue for Q1 2025, reaching $73.3 million, up from $61.4 million in the same period last year. The newly acquired Stubb Creek operations contributed approximately $3.6 million to this figure. Cash collections rose by 6% to $124.8 million, compared to $117.7 million in Q1 2024.
As of March 31, 2025, Savannah’s cash balance stood at $110.4 million, significantly up from $32.6 million at year-end 2024. Net debt was reduced to $597.8 million, from $636.9 million in December 2024. Excluding liabilities from the SIPEC acquisition, net debt would have dropped further to $570 million.
Gross daily production in Nigeria during the quarter averaged 23.6 Kboepd, slightly below the 24.1 Kboepd recorded in Q1 2024.
CEO Commentary
Commenting on the performance, CEO Andrew Knott said:
“We are pleased to report strong progress on our 2025 objectives, including a 19% increase in revenues and a continued positive trend in cash collections. Since acquiring SIPEC, production at Stubb Creek has risen by 15%, with upgraded reserves further strengthening our portfolio. Our planned Uquo Field drilling campaign promises additional reserves and production capacity, which will be rapidly monetisable.”
Knott reaffirmed Savannah’s focus on delivering across nine strategic priorities for 2025, including improving cash collections, completing debt refinancing, expanding the Stubb Creek project, advancing the Uquo Field drilling programme, and pursuing further acquisitions and development in Chad, Cameroon, and Niger.
Niger Operations
In Niger, Savannah continues to advance its R3 East oil development project, which holds 35 million stock tank barrels (MMstb) in gross 2C resources. The operational Niger-Benin crude export pipeline, transporting up to 90 Kboepd from CNPC’s Agadem PSC area, offers a potential export route.
Subject to final stakeholder agreements, Savannah plans to launch a four-well testing programme by year-end 2025 at Amdigh-1, Eridal-1, Bushiya-1, and Kunama-1 discovery wells. The company estimates the programme could cost approximately $14.5 million and is currently at the pre-contract award stage. A successful testing programme would accelerate commercial production from the R3 East area.
Updated Reserves and CPR
Savannah has engaged McDaniel & Associates Consultants Ltd. to prepare updated Competent Person’s Reports (CPRs) on its oil and gas assets. The updated reports, aligned with the 2018 Petroleum Resource Management System, will be released alongside the company’s full-year 2024 financial statements. The assessment of Stubb Creek has already been completed, revealing a narrower range between 1P and 3P reserves—indicating greater reserve certainty for a mature asset in production for over a decade.
Savannah’s outlook for 2025 remains optimistic, with significant investment in drilling and infrastructure expected to drive capacity growth in 2026.
