19th May 2025 10:34
(Alliance News) - Savannah Energy PLC on Monday said it made "good progress" in the first quarter, as revenue grew and production at the Stubb Creek oil field increased.
The energy company focused on projects in Africa said revenue increased 19% to USD73.3 million in the first quarter from USD61.4 million a year ago.
This includes a contribution of around USD3.6 million from the Stubb Creek field following completion of the acquisition of Sinopec International Petroleum Exploration and Production Co Nigeria Ltd, or Sipec.
Savannah Energy said cash collections in the quarter were up 6.0% to USD124.8 million from USD117.7 million, as its cash balance stood at USD110.4 million at the end of March from USD32.6 million at the end of December.
Net debt was USD597.8 million at the end of the quarter, down from USD636.9 million.
Savannah said average gross daily production was 23,600 barrels of oil equivalent per day in the first quarter, down 2.1% from 24,100 boepd a year ago.
Production at Stubb Creek was up 12% to 2,800 barrels of oil per day from 2,500 bopd. The firm said it has started an 18 month expansion programme at the site to increase production to around 4,700 bopd.
During April, production at the site increased 15% to 3,100 bopd compared to the average level in 2024.
"2025 continues to be an exciting year for the business and we continue to work towards 'ticking-off' the delivery of the nine focus area projects that we outlined at the beginning of the year," said Chief Executive Officer Andrew Knott.
The company said the procurement process of long lead equipment is progressing in Nigeria, in preparation for a potential two-well drilling campaign on the Uquo Field to start in the fourth quarter of the year.
It said equipment orders have been placed for a development well which is expected to add up to 80 million standard cubic feet per day of production capacity.
Looking ahead, the company said it expects production to average around 20,000 boepd for the remainder of the year.
From the second quarter of 2026, it expects to increase its gas delivery capacity to up to 200 million standard cubic feet per day, in addition to increased oil production from Stubb Creek.
Shares in Savannah Energy were down 3.4% to 6.33 pence in London on Monday morning.
By Michael Hennessey, Alliance News reporter
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