NIGERIA/NIGER: Savannah Energy Provides Q1 Trading Update terming 2025 an “Exciting Year”

Nigeria Existing Business
Average gross daily production was 23.6 Kboepd for Q1 2025, broadly in line with the prior year period (Q1 2024: 24.1 Kboepd). On 10 March 2025, we announced the completion of the SIPEC Acquisition. Since its completion, we have commenced work on the planned production expansion with an increase of 15% in production already achieved. It is anticipated that this up to 18-month programme will lead to Stubb Creek gross production increasing to approximately 4.7 Kbopd. The transaction consideration was funded through a drawdown under a new US$60 million Reserve-Based Lending (RBL) debt facility. The RBL is fully available to utilise and the current drawn amount is US$40 million.

The US$45 million compression project at the Uquo Central Processing Facility is almost complete, with one compressor online and the second to be commissioned before the end of next month. This project, which will be delivered under budget, will allow us to maximise the production from our existing and future gas wells.

We are progressing the procurement process of long lead equipment in Nigeria in preparation for a potential two-well drilling campaign on the Uquo Field commencing in Q4 2025. Well site and flowline surveys have been completed for the Uquo NE development well (Uquo NE). This well is forecast to provide gas volumes of up to 80 MMscfpd. An additional exploration well in the Uquo Field (Uquo South) is also currently under consideration, which may be drilled back-to-back with the Uquo NE well. Uquo South is a well targeting an Unrisked Gross GIIP of 154 Bscf of incremental Prospective gas Resources on the Uquo licence area.
Niger
We are continuing to seek to progress the 35 MMstb (Gross 2C Resources) R3 East oil development in South-East Niger. The Niger-Benin oil export pipeline, now fully operational, provides a potential route to international markets for crude oil produced from the R1234 contract area of our subsidiary, Savannah Energy Niger SA, with 90 Kbopd reportedly being transported from the China National Petroleum Corporation-operated Agadem PSC area.

Subject to satisfactory stakeholder agreements being entered into, Savannah Energy Niger SA may commence a fourwell testing programme on the Amdigh-1, Eridal-1, Bushiya-1 and Kunama-1 discovery wells by the end of 2025, with all of the required long lead item equipment already in Niger. We are at the pre-contract award stage of the programme and our initial internal estimate of the total cost of the well test programme is approximately US$14.5 million (this will be subject to change as programme progresses and contracts are awarded). Assuming a successful well test programme, we would look to accelerate plans to commence commercial oil production from the R3 East Area and intend to incorporate the data acquired into our field development plan.

2025-2026 Outlook
Given the significant ongoing operation work, including completion of compression, site and logistical preparations for upcoming material drilling activity and other ongoing well activities, together with anticipated levels of customer demand, we expect production to average around 20 Kboepd for the remainder of the year 7. From Q2 2026, following the drilling and tie-back of Uquo NE, we expect to materially increase our gas delivery capacity to up to 200 MMscfpd (approximately 33.3 Kboepd) in addition to increased oil production from Stubb Creek, which is expected to reach 4.7 Kbopd during H2 2026.

Andrew Knott, CEO of Savannah Energy, said:
“I am pleased to provide a Q1 2025 trading update, highlighting good progress in our core objectives for the year, including a 19% increase in Total Revenues, and a continued strong trend in cash collections with almost US$125 million received in the quarter. We are also reporting that, since completion of the SIPEC Acquisition, production at the Stubb Creek oil field (“Stubb Creek”) has increased by approximately 15% and 2P oil reserves have been upgraded by 29%. Our planned Uquo Field drilling campaign, set to commence in Q4, has the potential to add further reserves, resources and production capacity which would be capable of easy and quick monetisation.
2025 continues to be an exciting year for the business and we continue to work towards “ticking-off” the delivery of the nine focus area projects that we outlined at the beginning of the year, being:

(1) securing a further increase in our rate of cash collections in Nigeria ;

(2) completion of the refinancing of our principal Nigerian debt facilities;

(3) completion of the planned acquisition of 100% of Sinopec International Petroleum Exploration and Production Company Nigeria Limited which was achieved during Q1 2025; (4) commencement of the Stubb Creek expansion project (which we updated on today);

(5) the advancement of our Chad/Cameroon arbitration processes
; (6) the commencement of the safe and successful drilling of our planned Uquo development well and potential Uquo exploration well;

(7) the potential advancement of our R3 East development in Niger
(8) the refinement of our power sector business model; and

(9) the delivery of further transformational acquisitions.

I would also highlight that we anticipate achieving a strong increase in cash collections in 2025 (even when set against our long-term 13% CAGR, with significant production capacity growth expected in 2026 once our heavy Uquo field investment programme is completed.”