Uche Cecil Izuora
Savannah Energy Plc, has provided a trading update on its Nigerian operations and other markets in Africa for the four months to 30 April 2026, reflecting continued operational progress and a strong focus on cash discipline.
It reports that following the completion of the SIPEC Acquisition in March 2025, the production expansion programme underway at its Stubb Creek has delivered an 8 per cent increase in average gross daily production to 3.1 Kbopd for the period, compared to 2.8 Kbopd during the same period in 2025.
Its group average gross daily production for the four-month period stood at 15.7 Kboepd (FY 2025: 18.8 Kboepd) with gas production volumes constrained as a result of the ongoing drilling and operational activity, and customer gas demand.
The update shows that its Revenues increased by 17 per cent year-on-year to US$104.1 million, compared to US$89.1 million in the same period last year. It also shows that its trade receivables balance declined by 22 per cent to US$395.2 million from US$507.2 million at year-end 2025.
It also reported cash balances of US$64.7 million during the four-month period, compared to the 31 December 2025 figure of US$42.8 million, with its net debt standing at US$641.7 million compared to the 31 December 2025 figure of US$658.6 million.
According to the update, Savannah’s cash collections for the four months ended April 30 amounted to US$183.5 million, a 48 per cent increase from the US$89.1 million it received during the same period in 2025.
Savannah also reported that it has entered into a new £32 million unsecured loan facility with NIPCO plc, its largest shareholder.
The facility is structured in two tranches: £20 million available immediately and £12 million available from July 1. The loan carries a 4.5 per cent annual interest rate and has a 36-month term.
The facility includes a conversion option that allows Savannah to repay the loan through the issuance of new shares at 8 pence per share.
NIPCO cannot require conversion, and Savannah is under no obligation to issue shares. The transaction constitutes a related party transaction under AIM rules.
The report highlighted the operational progress being made across key African assets, including Uquo and Stubb Creek, as well as continued advancement of its wind, solar and hydropower projects. It reports that drilling and completion activities at the Uquo NE well location have now been concluded, with rig-down operations currently underway ahead of mobilisation to the next well.
It also reports that the flowline installation is in its final stages, with tie-in activities ongoing at the Uquo CPF, while tie-in works at the well pad are expected to commence shortly, with first gas targeted for early July 2026, supporting the higher forecast gas production expected in H2 2026. Site construction activities at the Uquo South exploration well location, it said, are progressing well, with the site expected to be ready by early June 2026, just as conductor piling operations are also ongoing in preparation for the rig move from the Uquo NE location.
In Niger, Savannah reports that its Parc Eolien de la Tarka project has made significant progress to date, with the Minister of Energy confirming that the project is on the Government’s list of priority projects. It expects the timing and sequencing of further development activities in relation to the project to be linked to the timing and outcome of the Company’s ongoing discussions with the Government of Niger regarding the R1234 PSC and the potential recommencement of oil activities.
In Cameroon, negotiations with the Government are at an advanced stage regarding a Joint Development Agreement for the up to 95 MW Bini a Warak hybrid hydroelectric and solar project. This is expected to replace the Memorandum of Agreement signed in April 2023 and secure the terms under which Savannah will collaborate with the Government of Cameroon to further develop the project.
Andrew Knott, CEO of Savannah Energy, said: “Savannah continues to deliver against the nine core focus areas we set out for the business at the start of 2025.
In Nigeria, we have seen a significant improvement in cash collections, with a 48% year-on-year increase in the first four months of the year, alongside a 17% year-on-year increase in Revenues and a 22% reduction in our trade receivables balance since year-end 2025. This reflects our ongoing focus on disciplined cash collections and receivables management, which remains a key priority for the business this year. Operationally, we are advancing a number of important projects, including the drilling of two new gas wells at the Uquo field, and the production expansion programme at Stubb Creek which has already delivered an 8% increase in average daily production (compared to the first four months of 2025).
In our power division, we continue to progress our greenfield wind, solar and hydro portfolio. Alongside this, we continue to pursue further value-accretive acquisitions across both hydrocarbons and power, with several opportunities under active discussion. We are also pleased to have secured a new £32 million loan facility from NIPCO plc (“NIPCO”), our largest shareholder, strengthening our financial flexibility and further underpinning our confidence in delivering continued operational, financial and strategic progress through 2026 and 2027.”