Savannah Energy strikes gas at second Nigerian well, backs output guidance

Savannah Energy Plc said its Uquo 13 well in Nigeria has begun producing gas, while a neighbouring exploration well has struck gas across most of its targeted reservoirs, adding to the London-listed producer’s growth prospects in the West African nation.

The Uquo 13 well reached first gas in July, testing at roughly 50 million standard cubic feet per day, the company said in a statement Sunday. The nearby Uquo South exploration well, which spudded in early August and was targeting an un-risked 131 billion cubic feet of gas initially in place on a gross basis, is now being completed ahead of testing to determine the scale of the find and what it could mean for the wider license.

The results come as Savannah works to ramp up production from its Nigerian gas and oil assets, a key plank of its strategy after years of expansion across the continent. Group average gross production stood at 16.3 thousand barrels of oil equivalent per day over the first seven months of 2026.

With Uquo 13 now on stream, Savannah said it expects output to climb above 20,000 barrels of oil equivalent per day for the remaining five months of the year. The company reiterated full-year guidance of 18,000 to 20,000 barrels of oil equivalent per day, flagging further upside should Uquo South prove commercially significant.

At the Stubb Creek field, average gross production rose 29% to 3.7 thousand barrels of oil per day, and topped 5,000 barrels a day in July alone, underscoring the momentum building across Savannah’s Nigerian portfolio.

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The operational gains were mirrored on the balance sheet. Seven-month revenue climbed 10% to $160.6 million, while cash collections rose 13% to $247.9 million, the company said. Trade receivables, a persistent overhang for Savannah in recent periods, fell 22% since December to $394.6 million.

Cash stood at $62 million at the end of July, against net debt of $672 million. Savannah also said it had increased the reserve-based lending facility tied to Stubb Creek to $130 million and pushed out its maturity to August 2031, giving the company more room to fund development across its asset base.

The update lands ahead of a milestone the market has been waiting on for months: Savannah said it expects to publish its delayed 2025 annual report in September. Trading in the company’s AIM-listed shares has been suspended since the accounts were not filed on time, and will remain halted until the report is released.

Separately, Savannah reiterated that its long-running arbitration proceedings in Chad are on track to conclude in the second half of 2026. The company’s subsidiaries are seeking more than $775 million, plus interest and costs, in the dispute, which has run for years and represents a potentially significant cash recovery for the group should the tribunal rule in its favor.

For a company that built its portfolio through a string of acquisitions from international oil majors exiting Africa, the twin gas discoveries in Nigeria offer a rare piece of unambiguously positive operational news at a moment when investors are more focused on the accounting delay, the debt load and the outcome of the Chad case.

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