Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter, has provided update on its operating and financial performance for the seven months to 31 July 2025. All figures are unaudited.
The update shows that its gross production in Nigeria averaged 21.0 Kboepd (7M 2024: 24.3 Kboepd), of which 86% was gas (7M 2024: 89%). Its Total Revenues during the period was US$147.3 million, up by 4% compared to the Total Revenues of US$142.1 million in the first seven months in 2024.
The company also reported a 37% increase in cash collections YoY and a 12% improvement in the trade receivables balance compared to YE24. Cash collections for the seven months to 31 July 2025 were US$219.2 million, compared to US$160.0 million in the same period in 2024. Its trade receivables balance as of 31 July 2025 stood at US$476.4 million (YE24: US$538.9 million). As of 31 July 2025, cash balances were US$93.7 million (YE24: US$32.6 million) and net debt stood at US$591.9 million (YE24: US$636.9 million). This included debt associated with the SIPEC Acquisition and, which if excluded would have further reduced the net debt to US$549.5 million. It noted that only 6% of outstanding debt as of 31 July 2025 is recourse to Savannah, with the balance sitting within subsidiary companies on a non-recourse basis.
Operationally, Savannah has signed a turnkey drilling contract for up to two wells on the Uquo Field, with the Uquo NE development well due to start drilling in January 2026 and first gas targeted by the end of Q1 2026. Uquo NE is forecast to provide up to 80MMscf/d of gas and will utilise the recently commissioned Uquo compression project, achieved 10% below budget, allowing Savannah to maximise the production from both its existing and future gas wells. Its Stubb Creek asset continues to perform well, buoyed by the ongoing production expansion, with current daily production of 3.2kbopd, up 20% on 2024, and is targeting further increases in production as it progresses the planned expansion programme there.
According to the update, the refinancing of its US dollar debt within its Accugas subsidiary is ongoing with an agreement close to being finalised with a consortium of five Nigerian banks to secure an increase in the Nigerian facility to NGN772billion (approximately US$503 million) to allow Accugas to repay its remaining c.$200m of US dollar-denominated debt during H2 2025.
As it previously announced, Savannah is in the process of refining its Power Division business model, the remit of which has now been expanded to include potential thermal as well as potential renewable energy projects. It continues to progress its existing portfolio of up to 696 MW of wind, solar and hydroelectric projects, with its principal focus projects being the up to 250 MW Parc Eolien de la Tarka wind farm project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon.
Its Parc Eolien de la Tarka project has made significant progress in the year to date, with Niger’s Minister of Energy confirming that the project is on the Government’s list of priority projects, as Savannah continues to progress the additional Environmental and Social Impact Assessment (“ESIA”) field work studies required for the full ESIA, which its expect to complete and submit to the relevant authorities in H2 2025. The Company is negotiating outline terms in relation to the project’s proposed power purchase agreement and continue to work on the project in close collaboration with the International Finance Corporation (World Bank) and the US International Development Finance Corporation.
Negotiations with the Government of Cameroon are at an advanced stage regarding a Joint Development Agreement for the up to 95 MW Bini a Warak project. This is expected to replace the Memorandum of Agreement signed in April 2023 and secure the terms under which Savannah will collaborate with the Government of Cameroon to develop the project further.
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Operational update
Hydrocarbons Division
Nigeria Existing Business
Average gross daily production was 21.0 Kboepd for 7M 2025 (7M 2024: 24.3 Kboepd), of which 86% was gas (7M 2024: 89%)5.
On 10 March 2025, we announced the completion of the SIPEC Acquisition. Following its completion, we commenced work on the planned production expansion that has already increased current Stubb Creek gross daily production to 3.2 Kbopd, approximately 20% above the 2024 average. It is anticipated that this up to 18-month programme will lead to Stubb Creek gross production increasing to approximately 4.7 Kbopd.
The compression project at the Uquo CPF is now completed and fully commissioned. This project, which was delivered approximately 10% under the original US$45 million budget, will allow us to maximise the production from our existing and future gas wells.
We have signed a turnkey drilling contract in preparation for an up to two-well drilling campaign on the Uquo Field. Well site and flowline surveys have been completed for Uquo NE. Drilling for this well is scheduled to begin in January 2026, with first gas targeted by the end of that quarter and forecast to deliver 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 131 Bscf of incremental Prospective gas Resources on the Uquo licence area.
Power Division
As previously announced, Savannah is in the process of refining its Power Division business model, the remit of which has now been expanded to include potential thermal as well as potential renewable energy projects. We continue to progress our existing portfolio of up to 696 MW of wind, solar and hydroelectric projects, with our principal focus projects being on the up to 250 MW Parc Eolien de la Tarka wind farm project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon.
Our Parc Eolien de la Tarka project has made significant progress in the year to date, with the Minister of Energy confirming that the project is on the Government’s list of priority projects. We are continuing to progress the additional Environmental and Social Impact Assessment (“ESIA”) field work studies required for the full ESIA, which we expect to complete and submit to the relevant authorities in H2 2025. The Company is negotiating outline terms in relation to the project’s proposed power purchase agreement and continue to work on the project in close collaboration with the International Finance Corporation (World Bank) and the US International Development Finance Corporation.
Negotiations with the Government of Cameroon are at an advanced stage regarding a Joint Development Agreement for the up to 95 MW Bini a Warak project. This is expected to replace the Memorandum of Agreement signed in April 2023 and secure the terms under which Savannah will collaborate with the Government of Cameroon to develop the project further.
Financial update (unaudited)
7M 2025 Performance Highlights
7M 2025 Total Revenues1 were US$147.3 million, an increase of 4% over the prior year period (7M 2024: US$142.1 million) and 7M 2025 cash collections were US$219.2 million, an increase of 37% over the comparable prior year period (7M 2024: US$160.0 million).
As at 31 July 2025, cash balances were US$93.7 million (31 December 2024: US$32.6 million) and net debt stood at US$591.9 million (31 December 2024: US$636.9 million). This included debt associated with the SIPEC Acquisition and, for comparison purposes, if this were excluded, net debt would have further reduced to US$549.5 million. It should be noted that only 6% of outstanding debt as at 31 July 2025 is recourse to Savannah, with the balance sitting within subsidiary companies on a non-recourse basis. The Trade Receivables balance as at 31 July 2025 was US$476.4 million, a 12% improvement on year-end 2024 (31 December 2024: US$538.9 million). This relates primarily to amounts due under various gas sales agreements in Nigeria. Delivering an increase in our rate of cash collections in Nigeria remains a key focus area for the business in 2025.
Debt Facilities
In January 2024, an NGN 340 billion (approximately US$222 million) term facility was signed by Accugas with a consortium of five Nigerian banks (the “Transitional Facility”). This facility was fully utilised earlier this year with the resulting funds converted to US$, which, along with cash held, was used to partially prepay the existing Accugas US$ Facility. There is a remaining principal balance under the US$ Facility as at 31 July 2025 of approximately US$201 million. We expect to sign an agreement with the consortium of five Nigerian banks shortly for an increase in the Transitional Facility to up to approximately NGN772 billion (approximately US$503 million), enabling the remaining outstanding US$ balance to be converted into Naira, with the expectation this will allow the remainder of the Accugas US$ Facility to be fully repaid during H2 2025. This process, when complete, will align Accugas’ debt facility with the currency in which gas revenues are received.
Arbitration Update
As previously disclosed, our wholly owned subsidiary, Savannah Chad Inc (“SCI”), commenced arbitral proceedings in 2023 against the Government of the Republic of Chad in response to the March 2023 nationalisation of SCI’s rights in the Doba fields in Chad, and other breaches of SCI’s rights. Another wholly owned subsidiary, Savannah Midstream Investment Limited (“SMIL”), commenced arbitral proceedings in 2023 in relation to the nationalisation of its investment in TOTCo, the Chadian company which owns and operates the section of the Chad-Cameroon pipeline located in Chad. SMIL has also commenced arbitral and other legal proceedings for breaches of SMIL’s rights in relation to COTCo, the Cameroon company which owns and operates the section of the Chad-Cameroon pipeline located in Cameroon. We currently expect these arbitral proceedings to be concluded no later than the first half of 2026.
SCI and SMIL are claiming in excess of US$775 million (plus interest which is currently estimated at in excess of US$140 million and costs) for the nationalisation of their rights and assets in Chad.6 SMIL has a claim valued at approximately US$330 million (plus interest which is currently estimated at in excess of US$40 million and costs) for breaches of its rights in relation to COTCo.7 Whilst the Government of the Republic of Chad has acknowledged SCI’s and SMIL’s right to compensation, no compensation has been paid by the Government of the Republic of Chad to date. Savannah remains ready and willing to discuss with the Government of the Republic of Chad an amicable solution to the disputes. However, in the absence of such discussions, the SCI and SMIL intend to vigorously pursue their rights in the arbitrations.
SCI is involved in further arbitral proceedings in which designates of Société des Hydrocarbures du Tchad allege breaches by SCI of the Doba fields joint operating agreement.8 SCI is defending the claims vigorously. We currently expect these arbitral proceedings to be concluded no later than Q3 2026.
2024 Audited Annual Report & Accounts
Whilst the audit process is significantly advanced, additional time is required to finalise it. We now anticipate that the FY 2024 audited annual accounts will be released in September 2025 together with the Company’s unaudited half-year results for the six months ended 30 June 2025. Pursuant to the requirements of AIM Rule 19, the Company’s shares will remain suspended from trading on AIM until publication of the 2024 annual audited accounts.
The Company will provide further updates as and when appropriate.