Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter, today provided a comprehensive update on its operating performance and outlook, while also outlining its FY25 plans for the existing portfolio in Nigeria and Niger.
The update shows that its gross production in Nigeria has averaged 22.7kboe/d (88% gas; flat YoY), generating Total Income of $320m and Adj. EBITDA (including other operating income) of $257m in the 10-months to end-October, up from $233m and $202m respectively in H1 FY24A.
The company’s midstream subsidiary, Accugas Limited has now drawn NGN279bn under its new NGN340bn transitional debt facility, with proceeds used to pay down its US$ facility. The facility should be fully drawn by year end, with management requesting an increase in the size of the facility to enable the remaining $225m balance to be converted into Naira. This process, when complete, will align Accugas’ debt facility with the currency in which gas revenues are received. The company also continues to advance its plans for a potential long-dated domestic bond issuance to ultimately replace the NGN transitional facility.
According to the update, the company’s US$45 million Uquo Central Processing Facility (“Uquo CPF”) compression project in Nigeria is right on track for completion of construction before year-end, with commissioning taking place in Q1 2025, enabling the expansion of gas production in the medium term, with FY25F gas volumes expected to remain broadly flat YoY.
There are also plans to drill an additional Uquo development well and exploration well in H2 FY25. The transaction to increase Savannah’s ownership of the Stubb Creek asset to 100% for $61.5m is now scheduled to complete in Q1 FY25. Savannah has signed a new $60m RBL facility with The Standard Bank of South Africa Limited and Stanbic IBTC Bank Limited to fund the transaction and continues to plan for an expansion of oil production from the field.
In Niger, Savannah continues to seek to progress its 35 MMstb (Gross 2C Resources) R3 East oil development in South-East Niger. During 2024, it sought to optimise the development plan for the R3 East Area and, whilst there is no change to its resources estimate, it now forecasts a peak potential production of approximately 10,000 bopd (vs 5,000 bopd in the previous plan). Savannah’s estimates of the forecast PV10 value of the R3 East development project has also increased from US$150 million to US$210 million.
Savannah’s Renewable Energy Division remains focused on its target of 2GW+ pipeline of renewable energy projects by the end of FY26, up from c.700MW currently. A firm believer in Africa’s transition to renewable energy, Savannah has up to 696 MW of renewable energy projects currently in motion, including 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.
Andrew Knott, CEO of Savannah Energy, said: “I am pleased to provide an operational and financial update which demonstrates the continued progress we have made as a business in 2024. 2025 is clearly going to be an exciting year for our Company: we have a large operational programme in Nigeria which is expected to enhance both our oil and gas production levels and capacity; we intend to progress our R3 East oil development project in Niger; we continue to pursue key acquisitions in the upstream oil and gas space; and we expect to announce plans significantly expanding our renewable energy business. Fundamentally, Savannah remains unequivocally an “AND” company, seeking to deliver strong performance both for the short AND long term across multiple fronts, and pursuing growth opportunities in both the hydrocarbon AND renewable energy sectors.”
