Savannah Energy, the British independent energy company focused around the delivery of Projects that Matter, has provided the following financial and operational update.
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.'
Highlights
- Average gross daily production of 22.7 Kboepd for 10M 2024, in line with 10M 2023 (22.9 Kboepd);
- US$45 million Uquo Central Processing Facility ("Uquo CPF") compression project in Nigeria on track for completion of construction before year-end, with commissioning taking place in Q1 2025;
- Three gas contracts with customers agreed and extended in the year-to-date for a total of up to 105 MMscfpd;
- Conversion of both the Uquo Marginal Field (the "Uquo Field") and the Stubb Creek Marginal Field (the "Stubb Creek Field") oil mining leases to new 20-year petroleum mining leases, both effective 1 December 2023, in accordance with the Republic of Nigeria's Petroleum Industry Act 2021;
- Plans underway to commence a two-well drilling campaign on the Uquo Field in H2 2025, with an additional gas development well expected to add up to 80 MMscfpd of incremental production capability and an exploration well targeting an Unrisked Gross gas initially in place ("GIIP") of 154 Bscf of incremental gas resources.
- Progress continues on the planned acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited, whose principal asset is a 49% non-operated interest in the Stubb Creek Field (the "SIPEC Acquisition"), consolidating our interest in the field, with regulatory approval being targeted in early 2025;
- US$60 million reserve-based lending ("RBL") facility signed in October 2024 with The Standard Bank of South Africa Limited and Stanbic IBTC Bank Limited to fund the SIPEC Acquisition;
- 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;
- The Company continues to target a portfolio of up to 2 GW+ of renewable energy projects in motion by end 2026;
- 10M 2024 Total Income(1) of US$320.3 million (10M 2023: US$231.0 million) and 10M 2024 cash collections of US$239.8 million (10M 2023: US$189.2 million). As at 31 October 2024, cash balances were US$53.4 million (31 December 2023: US$107.0 million) and net debt stood at US$568.7 million (31 December 2023: US$473.7 million);
- Financial guidance for 2024 is reiterated at:
- o Total Revenues(2) 'greater than US$245 million';
- o Operating expenses plus administrative expenses(3) 'up to US$75 million'; and
- o Capital expenditure 'up to US$50 million'; and
- Continuing to progress a potential alternative transaction structure to acquire a material stake in producing oil and gas assets in South Sudan.
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Source: Savannah Energy
