*As new Nigerian investor, NIPCO acquires 19.4% equity
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 nine months to 30 September 2025. All figures are unaudited.
The update shows that Savannah has continued its growth trajectory, with appreciable increase in its Total Revenues and cash collections. Total Revenues during the period was US$185.2 million, up 9% compared to the Total Revenues of US$169.3 million in the first nine months in 2024, just as its cash collections rose by 5% to US$241.6 million compared to US$229.3 million in the corresponding period in 2024. The company also reported cash balances of US$101.8 million, which as of 31 December 2024 stood at US$32.6 million.
Likewise net debt and trade receivables balance continue to see improvements, reducing by 1% and 9%, respectively to 30 September 2025 since YE24. The company’s net debt as of 30 September 2025 stood at US$629.9 million (it was US$636.9 million by 31 December 2024), with Gross debt at US$731.7 million, of which only US$41.4 million (6%) was recourse to PLC. Its Trade Receivables balance as of 30 September 2025 was US$493.3 million, a 9% improvement on year-end 2024 of US$538.9 million.
According to the update, agreements have been signed with a consortium of five Nigerian banks in respect of an increase in the Accugas debt facility from NGN340 billion (approximately US$222 million) to up to approximately NGN772 billion (approximately US$500 million). It is expected that the Transitional Facility will be utilised to enable the remaining outstanding balance of the Accugas US$ Facility to be repaid by end 2025. This is in addition to the term sheet agreed between Savannah’s wholly owned subsidiary, Savannah Energy EA, and a major African based financial institution for a new US$37.4 million debt facility to provide funding for our planned acquisition of a 50.1% interest in Klinchenberg BV, which holds indirect interests in three East African hydropower projects.
As part of its financial drive, Savannah announced its intention to complete a fundraising by way of subscription of 161,061,510 new Ordinary Shares at 7 pence per new Ordinary Share to raise approximately £11.3 million before expenses. The completion of the final tranche of the March 2025 fundraising of 138,977,614 new Ordinary Shares at 7 pence per new Ordinary Share is expected imminently, with the final approximate £9.7 million in subscription funds to be received.
The company also announced the planned introduction of a new strategic shareholder, NIPCO, a diversified Nigerian energy conglomerate, onto the company’s register. The new Investor intends to acquire, for £7.9 million, 113,378,685 Ordinary Shares issued as part of the Company’s March 2025 fundraising and expects to acquire a further £9.5 million, 135,674,944 Ordinary Shares through a series of secondary market trades, representing a total investment of approximately £28.7 million in the company and an expected pro forma holding of around 19.4% of the Company’s enlarged share capital (as enlarged by the various proposed share issues referred to in this announcement). Savannah also announced the intended sale of Ordinary Shares by the Company’s employee benefit trust and issue of new Ordinary Shares to the EBT.
Operationally, Savannah’s gross production in Nigeria averaged 20.1 Kboepd (9M 2024: 23.0 Kboepd), of which 85% was gas (9M 2024: 88%). At Stubb Creek, the 18-month expansion programme has increased production to 3.3kbopd, 24% above the 2024 average. Well site construction is currently ongoing for the Uquo NE development well, following the earlier signing of a turnkey drilling contract for a planned two-well drilling campaign on the Uquo Field, scheduled to commence in January 2026, with first gas targeted by the end of that quarter. In Niger, Savannah is also considering commencing a four-well testing programme and/or a return to exploration activity in the R1234 PSC contract area 2026/27, subject to a satisfactory agreement being reached with the country’s government.
It reports that the company’s new compression system at the Uquo Central Processing Facility has been completed and fully commissioned. This project, which was delivered safely and approximately 10% under the original US$45 million budget, is expected to allow Savannah to maximise the production from its existing and future gas wells.
Savannah also announced that it has agreed a gas contract extension with the Central Horizon Gas Company Limited to end December 2026 for up to 10 MMscfpd.
Savannah said it also progressing on its previously announced proposed acquisition of indirect interests in three East African hydropower projects, including the 255 MW Bujagali power plant, with a 13-year operating and payment track record, and two advanced-stage development projects, marking its planned entry into five new countries, namely: Uganda, Burundi, the Democratic Republic of the Congo, Malawi and Rwanda.
The company continues to progress on its existing priority Power Division projects, 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. It is also actively reviewing opportunities in both the thermal and renewable power sector, with the expectation of announcing transaction(s) currently under consideration over the course of the next 24 months in the African power space.
Andrew Knott, CEO of Savannah Energy, said: “2025 has been a year of strong progress against the nine focus areas we set out at the beginning of the year. These include increasing our rate of cash collections in Nigeria, with performance remaining on track; advancing the refinancing of our principal Nigerian debt facilities, which we expect to complete by year-end; and successfully completing the acquisition of 100% of Sinopec International Petroleum Exploration and Production Company Nigeria Limited in March.
“We have also commenced the Stubb Creek expansion project, continued to advance our arbitral processes, and begun site construction ahead of the planned drilling of our Uquo development and exploration wells. In Niger, discussions on the R3 East development are progressing, while in the power sector we have refined our business model to align with future growth opportunities. Finally, we continue to pursue further value-accretive acquisitions across both the oil and gas and power sectors, with the Norfund transaction already announced and several other opportunities under active discussion.
“Additionally, earlier in the year, the Company reported a 21% 2P Reserves upgrade on its Uquo gas field and a 29% upgrade on its Stubb Creek oil field 2P Reserves. Collectively, these developments demonstrate the strong operational momentum within the Group and our continued focus on disciplined execution across all parts of the business.
“We are also pleased to welcome NIPCO Plc , a diversified Nigerian energy conglomerate, as a potential new investor in the Company, who we expect to own approximately 19.4% of the Company following completion of their primary investment and certain secondary share transactions. The proceeds of the New Investor’s primary investment are expected to enable, among other things, the advancement of certain business development opportunities currently under consideration. Coupled with the imminent completion of the primary investment I committed to in March 2025, a series of secondary transactions, which are expected to occur today, are anticipated to increase my shareholding in the Company to approximately 12.6%, demonstrating my continued strong faith in the Company’s future potential.1
“In addition, we are pleased to announce that should we see a significant improvement in cash collections- and/or receive meaningful proceeds from the arbitral processes we are engaged in, it is the Board’s present intention to consider returning a portion of such funds to shareholders through a tender offer or share buy-back, subject to prevailing capital requirements and shareholder and regulatory approvals. In this vein, today we are also announcing the signature of a conditional off-market share buyback agreement for approximately 6.8% of the Company’s enlarged share capital, to acquire shares prior to 31 March 2026. We are also announcing the proposed cancellation of warrants over approximately 101 million shares.
“I would also like to take this opportunity to extend my thanks to all those who contributed to our successes this year – my incredibly dedicated and passionate colleagues, our host governments, communities, local authorities and regulators, our shareholders and lenders, and our customers, suppliers and partners. ”
