Savannah Energy has announced the completion of drilling and tie-back operations for the Uquo 13 development well in Nigeria, with the well achieving first gas in July and testing at approximately 50 million cubic feet per day (mmcf/d).
The company spudded the Uquo South exploration well in early August and is currently completing it. Gas has been confirmed in most of the targeted reservoirs through pressure measurements, fluid sampling and logging, with full evaluation of the discovery to follow once well testing is complete.
Uquo South was targeting an unrisked gross gas initially in place figure of 131 billion cubic feet (bcf).
Both wells are part of Savannah’s Uquo license area in southeast Nigeria. The Uquo 13 well was tied back to the Uquo Central Processing Facility.
Andrew Knott, Chief Executive Officer of Savannah Energy, 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. 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.”
He added: “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. 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. During the year, we also announced a 21% 2P Reserves upgrade at the Uquo gas field and a 29% upgrade to Stubb Creek oil field 2P Reserves. In Niger, we remain actively engaged with the Government on future activity, with the R3 East development plan significantly enhanced during the year.”
“In the power sector, we repositioned our business model and advanced both operating and development opportunities, including the proposed acquisition of interests in three East African hydropower projects, which is targeted for completion in H1 this year. We have also continued to progress on our wind, solar and hydro portfolio. Alongside this, we continue to pursue further value-accretive acquisitions across both hydrocarbons and power, with several other opportunities under active discussion.”
“We also continued to progress our arbitration claims, with the Savannah Chad Inc (‘SCI’) and Savannah Midstream Investment Limited (‘SMIL’) proceedings currently expected to be concluded in the first half of 2026.”
The British independent energy firm, focused on delivering “Projects that Matter,” also released its operational and financial update on Nigerian operations and other African markets for the seven months to 31 July 2026, including updated cash collections in its Nigerian business.
According to the report, Savannah’s revenue increased by 10 per cent year-on-year to US$160.6 million, compared to US$146.0 million during the first seven months of 2025. As at 31 July 2026, cash balances totalled US$62.0 million (up from US$42.7 million as at 31 December 2025), while net debt stood at US$672.0 million (31 December 2025: US$658.8 million).
Trade receivables as at 31 July 2026 were US$394.6 million, a 22 per cent reduction from year-end 2025 (US$508.5 million).
Cash collections in Nigeria increased by 13 per cent year-on-year to US$247.9 million during the seven-month period, compared to US$219.2 million in the same period of FY 2025.
Group daily gross production averaged 16.3 thousand barrels of oil equivalent per day (Kboepd) for the first seven months of 2026, compared to 18.8 Kboepd in the same period of FY 2025. With Uquo 13 now on stream, the company expects average gross daily production to exceed 20 Kboepd over the remaining five months of the year, with FY 2026 average gross daily production anticipated to be in the range of 18-20 Kboepd, including further upside potential from the Uquo South exploration well.
Following the completion of the SIPEC acquisition in March 2025, the production expansion programme at Stubb Creek delivered a 29 per cent year-on-year increase in average gross daily production to 3.7 thousand barrels of oil per day (Kbopd) for the first seven months of 2026 (7M 2025: 2.8 Kbopd). Average production in July 2026 exceeded 5.0 Kbopd.
On the Uquo 13 well (formerly Uquo NE), drilling and completion activities have been concluded. The well, tied back to the Uquo Central Processing Facility (CPF), achieved first gas in July and is on stream after successfully testing at approximately 50 mmcf/d.
The Uquo South exploration well spudded in early August 2026 and is currently being completed. Gas has been confirmed in most targeted reservoirs through pressure measurements, fluid sampling and logging. The discovery will be fully evaluated following completion of the well and the planned testing programme.
On Niger, Savannah reported continued engagement with the government regarding the R1234 PSC and forward work programme. Discussions aim to resolve disputed issues under the contract, covering the contractual and operational framework for recommencing activity, including treatment of periods when operations were materially constrained. The company continues to reserve its rights under the R1234 PSC and is seeking a mutually acceptable basis with the government for future operations. Work will only resume on these assets if and when a satisfactory agreement is reached.
The report also provided updates on ongoing arbitration in Chad, where wholly owned subsidiaries SCI and SMIL commenced arbitral proceedings in 2023 against the Government of the Republic of Chad.
SCI sued the Chadian government in response to the March 2023 nationalisation of its rights in the Doba fields and other breaches. SMIL commenced arbitral proceedings in 2023 relating to the nationalisation of its investment in TOTCo, which owns and operates the Chadian section of the Chad-Cameroon pipeline. SMIL also initiated arbitral and legal proceedings for breaches of its rights in relation to COTCo, which owns and operates the Cameroonian section of the pipeline. Savannah expects these proceedings to conclude in the second half of 2026.
SCI is also involved in further arbitral proceedings where designates of Société des Hydrocarbures du Tchad allege breaches by SCI of the Doba fields joint operating agreement. SCI is defending the claims vigorously, with proceedings expected to conclude in the first half of 2027.