Savannah Energy reports strong FY 2024 results with 21% growth in 2P reserves at Nigeria’s Uquo field

Savannah Energy PLC, the British independent energy company committed to delivering “Projects that Matter,” has released its unaudited financial and operational results for the fiscal year ended 31 December 2024.

The report shows significant milestones in income growth, asset development, reserves expansion, and sustainability, underlining the company’s robust performance and strategic execution across its West African portfolio, particularly in Nigeria.

For FY 2024, Savannah Energy reported a total income of US$393.8 million, reflecting a substantial 36% increase compared to US$289.8 million in FY 2023. This figure comprises total revenues of US$258.9 million, marginally below the US$260.9 million recorded the previous year, and other operating income of US$134.9 million, a significant increase from US$28.9 million in FY 2023.

Importantly, Savannah exceeded all its previously issued financial guidance. Total revenues surpassed its forecast of more than US$245 million by 6%. Operating and administrative expenses were contained at US$71.0 million, 5% below guidance of up to US$75.0 million. Capital expenditure came in at US$23.1 million, well below the projected US$50 million, due to prudent phasing of spending.

The company also achieved a record cash collection of US$248.5 million, representing a 21% increase from US$206 million in FY 2023. Cash balances at the end of 2024 stood at US$32.6 million, compared to US$107.0 million the year before, while net debt rose to US$636.9 million from US$473.7 million in FY 2023. Gross debt was reported at US$669.5 million, with 94% (US$630.6 million) non-recourse to the parent company.

Despite the slight dip in total revenues, Savannah maintained a strong Adjusted EBITDA of US$181.2 million, closely aligned with the prior year’s US$184.1 million. The Adjusted EBITDA margin held steady at 70%, reflecting the company’s continued operational efficiency.

The company’s average gross daily production in 2024 was 23.1 Kboepd (thousand barrels of oil equivalent per day), consistent with the 23.6 Kboepd in 2023, with gas production accounting for 88% of the total, slightly down from 91% the previous year.

During the year, Savannah successfully extended and agreed to three gas supply contracts totaling up to 105 MMscfpd (million standard cubic feet per day), equivalent to 17.5 Kboepd. The average realized sales price for gas increased to US$4.68/Mscfe, up 4% from the US$4.51/Mscfe achieved in 2023.

In January 2024, Accugas, Savannah’s midstream gas processing and distribution subsidiary, signed a ₦340 billion (approx. US$450 million) term facility with a consortium of five Nigerian banks. By year-end, ₦332 billion had been drawn down and converted to US dollars, with proceeds used to partially prepay the existing Accugas US$ Facility. As of 31 December 2024, the remaining balance on the facility stood at US$212.3 million.

Additionally, in October 2024, Savannah secured a US$60 million debt facility from The Standard Bank of South Africa Limited and Stanbic IBTC Bank Limited to fund the acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC), which was completed in Q1 2025.

Reserves Growth: Uquo and Stubb Creek Fields Lead the Way

One of the year’s most notable achievements was the 21% increase in 2P reserves at the company’s flagship Uquo field in Nigeria, bringing the total increase since acquisition to 81%. This was complemented by a 29% increase in 2P reserves at the Stubb Creek field, as confirmed in an updated Competent Persons Report (CPR) by McDaniel & Associates Consultants Ltd. in March 2025.

Uquo Field Gas Reserves (Bscf):

1P: from 233.5 to 320.2 (+37%)

2P: from 400.5 to 484.9 (+21%)

3P: from 493.6 to 544.8 (+10%)

Stubb Creek Oil Reserves (MMstb):

1P: from 3.3 to 9.7 (+194%)

2P: from 10.7 to 13.8 (+29%)

3P: from 20.4 to 18.1 (-11%)

Overall, Nigeria’s 2P + 2C reserves portfolio increased by 7%, from 177.7 MMboe to 190.0 MMboe, underscoring Savannah’s growing asset base and the success of its upstream strategy.

In addition, the Uquo and Stubb Creek Marginal Fields were successfully converted to new 20-year Petroleum Mining Leases, effective December 1, 2023, under the Petroleum Industry Act (PIA) 2021, providing long-term regulatory certainty.

Sustainability Performance: Emissions Reduction and Host Nation Contributions

Savannah also made significant strides in environmental, social, and governance (ESG) performance. Its Scope 1 carbon intensity fell by 47%, from 10.7 kg CO2e/boe in 2023 to 5.7 kg CO2e/boe in 2024, primarily due to reduced pipeline maintenance and emission reduction initiatives, including flare reduction at the Uquo Central Processing Facility.

The company maintained a zero Lost Time Injury rate and achieved a low Total Recordable Incident rate, showcasing a strong safety culture. Total contributions to host nations rose 22% to US$63.4 million, while training hours per employee rose 32% to 75 hours, driven largely by increased health, safety, and environment (HSE) training.

Savannah’s 2024 Sustainability Review and accompanying disclosures in line with Task Force on Climate-Related Financial Disclosures (TCFD) and Sustainability Accounting Standards Board (SASB) frameworks were also published.

Strategic Progress and Post-Year-End Developments

Following the completion of the SIPEC Acquisition in March 2025, Savannah has initiated an 18-month expansion programme expected to boost production to 4.7 Kbopd. The company also raised £30.6 million in equity and secured a US$200 million acquisition debt facility for future hydrocarbon asset purchases.

Other key post-year-end highlights include:

Commissioning of a US$45 million compression project at the Uquo Processing Facility to increase gas production.

Preparations for a two-well Uquo drilling campaign scheduled for Q4 2025, including the Uquo NE development well, expected to yield up to 80 MMscfpd, and the Uquo South exploration well, targeting 131 Bscf of unrisked gas.

Ongoing work to develop the R3 East oil project in Niger, subject to stakeholder agreements.

Continued development of renewable projects including the 250 MW Parc Eolien de la Tarka wind farm in Niger and the 95 MW Bini a Warak hydro-solar project in Cameroon.

Refinement of the Power Division business model to now include both renewable and thermal energy projects.

As of 30 April 2025, Savannah had collected US$135.3 million in cash YTD, up from US$132.2 million in the same period last year. Cash balances had risen to US$77.2 million, and net debt declined to US$601.6 million. A significant debt restructuring is also in progress, with final documentation agreed to increase the Transitional Facility from ₦340 billion to ₦773 billion, expected to be signed and executed in H2 2025.

Commenting on the results, Andrew Knott, CEO of Savannah Energy, said:

“I am pleased to announce our FY 2024 results, in line with our earlier trading statement, and a 21% increase in 2P Reserves at our Uquo field in Nigeria, bringing total reserves growth since acquisition to 81%. Following our 29% increase at Stubb Creek earlier this year, 2025 continues to be an exciting year for the business.”

Knott reaffirmed the company’s focus on its nine strategic priorities for 2025, which include debt refinancing, completing the SIPEC integration, advancing drilling and expansion projects, progressing arbitration in Chad/Cameroon, and executing transformational acquisitions. He also projected further growth in cash collections and significant production capacity increases by 2026.