AdminSavannah Energy has released its unaudited financial results for the first quarter (Q1) 2025. The results showed a strong financial performance, with the company’s total revenue rising by 19% to $73.3 million from $61.4 million in Q1 2024.
A statement from the company said the outcome was driven by the successful completion of the SIPEC acquisition and expansion of the Stubb Creek oil field, which contributed approximately $3.6 million of the revenue.
Join our WhatsApp ChannelThe report also 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, the energy company’s cash balances stood at $110.4 million, compared to $32.6 million as of 31 December 2024, while net debt during the period stood at $597.8 million (against $636.9 million by YE2024). This included debt associated with the SIPEC Acquisition, which, if excluded, would have further reduced it 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).
Increase in Production
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.
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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 (“Uquo NE”). 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.
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Commenting on the outcome, Andrew Knott, CEO of Savannah Energy, 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 $125 million 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% and 2P oil reserves have been upgraded by 29%.”
Knott expressed optimism that its Uquo Field drilling campaign, which is set to commence in Q4 this year, has the potential to add further reserves, resources and production capacity, which would be capable of easy and quick monetisation.
The Savannah Energy CEO He said that as 2025 continues to they would continue to work towards the delivery of the nine focus area projects that we outlined at the beginning of the year, which include: (1) securing a further increase in our rate of cash collections in Nigeria; (2) completion of the refinancing of our principal Nigerian debt facilities; (3) completion of the planned acquisition of 100% of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (the “SIPEC Acquisition”) which was achieved during Q1 2025; (4) commencement of the Stubb Creek expansion project (which we updated on today); (5) the advancement of our Chad/Cameroon arbitration processes; (6) the commencement of the safe and successful drilling of our planned Uquo development well and potential Uquo exploration well; (7) the potential advancement of our R3 East development in Niger; (8) the refinement of our power sector business model; and (9) the delivery of further transformational acquisitions.
He further stated that the company anticipates achieving “a strong increase in cash collections in 2025 (even when set against our long-term 13% CAGR), with significant production capacity growth expected in 2026 once our heavy Uquo field investment programme is completed.”
