Savannah Energy has recorded significant growth in production and revenue following the successful acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC), according to its Q1 2025 unaudited financial and operational update.
In a trading statement released this week, the company said its total revenue rose by 19 per cent to $73.3 million in the first quarter of 2025, compared to $61.4 million in the same period of 2024. The boost was largely driven by the SIPEC acquisition and expansion activities at the Stubb Creek oil field, which alone contributed $3.6 million to the quarterly revenue.
Savannah also reported a rise in cash collections, which increased by six per cent year-on-year to $124.8 million in Q1 2025, compared to $117.7 million in Q1 2024. By the end of March 2025, the company’s cash balance had reached $110.4 million — up from $32.6 million at the end of December 2024.
Net debt was reduced to $597.8 million, down from $636.9 million as of year-end 2024. The company noted that excluding the debt related to the SIPEC acquisition, net debt would have dropped even further to $570 million.
Operationally, average gross daily production in Nigeria during the period stood at 23.6 thousand barrels of oil equivalent per day (Kboepd). Notably, since the acquisition, Savannah has ramped up production at the Stubb Creek field by 15 per cent to 3.1 Kbopd in April 2025, compared to 2.5 Kbopd in Q1 2024. The company has also kicked off an 18-month expansion programme at Stubb Creek, aiming to increase production to approximately 4.7 Kbopd.
The report also highlighted a substantial upgrade in oil reserves. Gross 1P reserves at Stubb Creek increased by 197 per cent and 2P reserves by 29 per cent. This was attributed to improved recovery rates following the adoption of enhanced field monitoring techniques and advanced reservoir modelling.
In the gas sector, Savannah’s $45 million compression project at the Uquo Central Processing Facility is nearing completion. One compressor is already online, and the second is expected to be operational by the end of next month. The company said the project is on track to be completed under budget, which will help maximise gas production from both current and future wells.
Looking ahead, Savannah is preparing for a two-well drilling campaign at the Uquo Field, expected to start in Q4 2025. Procurement for long-lead equipment is ongoing, and site surveys for the Uquo NE development well have been concluded. The well is projected to deliver up to 80 million standard cubic feet of gas per day.
An additional exploration well, possibly drilled back-to-back with Uquo NE, is also under review. The Uquo South well is targeting an unrisked gross gas initially in place (GIIP) of 154 billion standard cubic feet (bscf) of additional prospective gas resources within the Uquo licence area.
Commenting on the performance, Savannah Energy’s CEO, 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 $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 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.”
The company’s strong Q1 results reinforce its long-term strategy of expanding production capacity and optimising Nigeria’s oil and gas resources, as it positions itself as a key energy supplier in the region.
