Key Points
- Nigeria cash collections rose 13 per cent year-on-year to $247.9 million in the first seven months of 2026.
- Revenue increased 10 per cent to $160.6 million, while Stubb Creek production rose 29 per cent.
- Uquo 13 achieved first gas in July, while gas was confirmed in most targeted reservoirs at Uquo South.
Main Story
Savannah Energy PLC has reported a 13 per cent year-on-year increase in cash collections from its Nigerian operations to $247.9 million in the seven months to July 31, 2026.
The British independent energy company said its Nigerian cash collections increased from $219.2 million recorded during the corresponding period of 2025.
Revenue also rose by 10 per cent to $160.6 million, compared with $146 million in the first seven months of 2025.
Savannah said group average gross daily production stood at 16.3 thousand barrels of oil equivalent per day (Kboepd) during the period, compared with 18.8 Kboepd in 2025.
The company expects average gross daily production to exceed 20 Kboepd during the remaining five months of 2026 following the start-up of the Uquo 13 well.
It projects full-year average gross daily production of between 18 Kboepd and 20 Kboepd, with further potential upside from the Uquo South exploration well.
At Stubb Creek, average gross daily production increased by 29 per cent year-on-year to 3.7 thousand barrels of oil per day, compared with 2.8 Kbopd in the same period of 2025.
Savannah said average production at the field exceeded 5 Kbopd in July, following the production expansion programme launched after completion of its SIPEC acquisition in March 2025.
The Issues
Savannah’s financial position showed mixed movements during the period.
As of July 31, its cash balances stood at $62 million, compared with $42.7 million at the end of December 2025. Net debt, however, increased from $658.8 million to $672 million.
Trade receivables declined by 22 per cent to $394.6 million from $508.5 million at the end of 2025.
The company also increased its Stubb Creek reserve-based lending facility to $130 million, extended its tenor to August 2031 and reduced the margin to 7.5 per cent per annum.
In Niger, Savannah said it was continuing discussions with the government over its R1234 Production Sharing Contract and future work programme.
The discussions are focused on resolving disputed contractual and operational issues, with the company saying activities would resume only if a satisfactory agreement is reached.
In Chad, arbitration proceedings involving Savannah’s subsidiaries and the government remain ongoing over the nationalisation of its interests in the Doba fields and investments in the Chad-Cameroon pipeline.
What’s Being Said
“2025 was a year of execution for Savannah with good progress delivered across the nine focus areas we set out at the start of the year.” — Andrew Knott, CEO, Savannah Energy
“In Nigeria, we increased our rate of cash collections year-on-year by 12%, a trend which we hope to continue into 2026, and have made significant progress in refinancing our debt facilities.” — Andrew Knott, CEO, Savannah Energy
“In our Hydrocarbons Division, the completion of the SIPEC acquisition in March enabled us to commence an expansion programme at Stubb Creek, increasing 2025 production materially above 2024 levels.” — Andrew Knott, CEO, Savannah Energy
“At Uquo we delivered the new compression system under budget and advanced site construction ahead of the planned commencement of drilling of the new Uquo NE well.” — Andrew Knott, CEO, Savannah Energy
“Overall, this progress provides a strong platform for continued delivery in 2026.” — Andrew Knott, CEO, Savannah Energy
What’s Next
Savannah expects production from Uquo 13 to support higher group output during the remaining months of 2026.
The company said the Uquo South exploration well, which spudded in early August, was being completed and would undergo further testing to fully evaluate the discovery.
Savannah will also continue discussions with the Nigerien government regarding future operations under the R1234 PSC.
The company expects its arbitration proceedings relating to Chad to be concluded in the second half of 2026, while separate proceedings involving claims against its subsidiary are expected to conclude in the first half of 2027.
Savannah also said it was reviewing opportunities across oil and gas, thermal power and renewable energy, with potential transactions expected over the next 24 months.
Bottom Line
Savannah Energy recorded stronger cash collections, revenue and Stubb Creek production in the first seven months of 2026, while the start-up of Uquo 13 is expected to lift production further. The company is also reducing its trade receivables and strengthening its financing position, although higher net debt and unresolved matters in Niger and Chad remain key issues.
