Savannah Energy PLC has reported a 13% year-on-year increase in cash collections from its Nigerian operations to US$247.9 million in the seven months to July 31, 2026, strengthening the company’s financial position despite lower group-wide production.
The British independent energy company, in its unaudited seven-month operational and financial update, said Nigerian cash collections rose from US$219.2 million in the corresponding period of 2025.
Savannah’s revenue also increased by 10% to US$160.6 million, compared with US$146 million in the first seven months of 2025.
The company’s cash balances stood at US$62 million at July 31, up from US$42.7 million at the end of December 2025. Trade receivables also fell significantly to US$394.6 million from US$508.5 million at year-end 2025, representing a 22% reduction.
Net debt, however, increased moderately to US$672 million, compared with US$658.8 million at December 31, 2025.
Uquo gas production comes on stream
Savannah said production developments in Nigeria were gaining momentum, particularly at its Uquo and Stubb Creek assets.
The newly drilled Uquo 13 well, formerly known as Uquo NE, has been completed and tied back to the Uquo Central Processing Facility. The well achieved first gas in July and has been brought on stream after successfully testing at approximately 50 million standard cubic feet per day (MMscfd).
The company also said the Uquo South exploration well, which spudded in early August, has encountered gas in most of its targeted reservoirs based on pressure measurements, fluid sampling and logging.
The discovery will be fully evaluated following completion of the well and the planned testing programme.
At Stubb Creek, Savannah said its production expansion programme, following completion of the SIPEC acquisition in March 2025, had delivered a 29% year-on-year increase in average gross daily production.
Production averaged 3.7 thousand barrels of oil per day (Kbopd) in the first seven months of 2026, compared with 2.8 Kbopd in the same period of 2025. July production exceeded 5 Kbopd.
Group production lower, but outlook improves
Savannah’s group daily gross production averaged 16.3 thousand barrels of oil equivalent per day (Kboepd) during the seven months, down from 18.8 Kboepd in the corresponding period of 2025.
The company expects production to rise above 20 Kboepd during the remaining five months of 2026 following the Uquo 13 start-up.
It expects full-year 2026 average gross daily production to come in at 18–20 Kboepd, with further upside possible from the Uquo South exploration well.
Niger and Chad remain unresolved
In Niger, Savannah said it remains in discussions with the government over the R1234 Production Sharing Contract and the framework for resuming operations.
The company said it continues to reserve its rights under the PSC and will only recommence work on the affected assets if a satisfactory agreement is reached with the government.
In Chad, Savannah said arbitration proceedings involving its subsidiaries Savannah Chad Inc. (SCI) and Savannah Midstream Investment Limited (SMIL) are expected to conclude in the second half of 2026.
The disputes relate to the 2023 nationalisation of Savannah’s interests in the Doba oil fields and its investment in TOTCo, as well as alleged breaches relating to COTCo.
A separate arbitration involving claims against SCI is expected to conclude in the first half of 2027.
Savannah Energy CEO Andrew Knott said the company had made significant progress across its business and was entering the remainder of 2026 from a stronger operational position.
“Overall, this progress provides a strong platform for continued delivery in 2026,” Knott said.
