Savannah Energy Provides Q1 2023 Financial and Operational Update

Q1 2023 Unaudited Financial Highlights

  • Q1 2023 Total Revenues2 of US$147.6m comprising Q1 2023 Total Revenues2 from Nigerian operations of US$71.0m (up 29% on Nigerian operations Q1 2022 Total Revenues2 of US$55.0m)
    plus Chad upstream revenues of US$76.6m; and
  • Group cash balance of US$217.3m3 and net debt of US$412.2m4
    Q1 2023 Operational Highlights
  • Q1 2023 average gross daily production was 54.9 Kboepd, compared to average gross daily
    production of 21.6 Kboepd in Q1 2022. Excluding Chad production, Q1 2023 average gross daily
    production on a like-for-like basis was 25.9 Kboepd, a 20% increase compared to Q1 2022; and
  • Of the total average gross daily production of 54.9 Kboepd, 43% was gas, including a 22% increase
    in production from the Uquo gas field compared to the same period last year, from 116.4
    MMscfpd (19.4 Kboepd) to 142.2 MMscfpd (23.7 Kboepd).

Cameroon Update
Savannah acquired an effective 41.06% indirect equity interest in the Cameroon Oil Transportation
Company (COTCo) from ExxonMobil on 9 December 2022. COTCo owns and operates the 903km
Cameroon oil export pipeline and the Kome Kribi 1 floating storage and offloading (FSO) unit, which
transport and store oil on behalf of its customers who are in turn charged a transportation tariff.
During Q1 2023 COTCo transported an average of 128.8 Kbopd of crude oil with a total of 11 liftings
conducted on behalf of its customers. Each lifting saw the safe and successful transfer of
approximately 1 MMbbls of crude oil from the FSO to ocean going vessels by COTCo on behalf of its
It should be noted that for accounting purposes, Savannah’s ownership interest in COTCo is treated
as an investment in an associate and, therefore, income from COTCo will be equity accounted for in
Savannah’s Consolidated Statement of Comprehensive Income (i.e. Savannah will reflect a
proportionate amount of net income relative to its shareholding in COTCo as opposed to
proportionately consolidating the revenues and costs of COTCo). Dividends received from COTCo will
be reflected in the Consolidated Statement of Cash Flows.

Niger Update
Savannah has continued progressing plans for the Early Production Scheme on the approximately 35
MMstb of Gross 2C Resources R3 East oil development. Bottomhole pumps and completion
equipment were ordered in Q1 2023, and a work-over rig solution has been identified for a well test
programme, which the Company expects to carry out in Q4 2023. Following the well test result,
Savannah expects to issue a comprehensive field development plan with first oil targeted in 2024 and
production expected to ramp up to a plateau rate of approximately 5 Kbopd for the initial
development. The crude is expected to be evacuated via the new Niger-Benin export pipeline, which
is currently under construction, reported to be 75% completed and estimated to be fully operational
in Q4 2023.
Savannah’s up to 250 MW Parc Eolien de la Tarka wind farm project in Niger, which has the potential
to increase Niger’s on-grid electricity supply by over 40%, has made significant progress. All key studies
required to achieve project sanction (including wind measurement, environmental and social impact,
grid integration, security, cartography, road and aviation studies) have either been completed or are
in progress. The preliminary on-site wind speed data measurements having proven to be highly
encouraging and we expect project sanction in 2024.
Nigeria Update
During Q1 2023 Savannah sold gas to seven customers including Calabar Electricity Generation
Company Limited, Lafarge Africa PLC, Ibom Power Company Limited, First Independent Power Limited,
the Central Horizon Gas Company Limited, TransAfam Power Limited and Notore Chemical Industries
PLC. So as to advance the Company’s ability to maintain and grow our gas production levels over the
course of the coming years, Savannah is progressing the US$45 million compression project at the
Uquo Central Processing Facility (CPF). Following the front-end engineering and the associated order
of long lead items, detailed design work commenced in Q1 2023 and is scheduled to be completed in
Q4 2023.
Chad Assets Update
As previously announced , the President of the Republic of Chad issued a Decree on 23 March 2023 nationalising Savannah Chad Inc’s (SCI) (formerly Esso Exploration and Production Chad Inc (EEPCI)) upstream production assets in Chad; subsequently on 31 March 2023 the Government of Chad passed a law confirming the nationalisation of SCI’s upstream production assets and also providing for the nationalisation of Savannah’s c. 40% interest in Tchad Oil Transportation Company (“TOTCo”), the owner and operator of the Chad section of the ETS.
Such nationalisation does not affect Savannah’s 41.06% indirect equity interest in COTCo.
The actions of the Republic of Chad are in direct breach of the upstream conventions to which SCI and
the Republic of Chad are, amongst others, party, together with a direct breach of the convention between TOTCo and the Government of Chad. These nationalisations were made notwithstanding the fact that under SCI’s operatorship the historic production decline was immediately reversed, with daily production averaging 29,349 barrels per day since Savannah’s ownership on 9 December 2022, an increase of c.9% as against the equivalent period prior to Savannah taking control of SCI. Savannah had also initiated plans to significantly increase production further through an active investment programme.
Disputes under the upstream conventions are subject to the jurisdiction of an ICC arbitral tribunal, seated in Paris. The Company has commenced ICC arbitral proceedings against the Government of Chad to seek full recompense for the loss that it has and will suffer as a result of the nationalisation of SCI’s assets.

South Sudan Acquisition Update
Further to the Company’s 12 December 2022 announcement, the Company continues to advance the
various workstreams required to complete the reverse takeover of PETRONAS International
Corporation Limited’s(PETRONAS) entire oil and gas business in South Sudan, and intends to publish
an AIM Admission Document in H1 2023. Further updates will be provided as and when appropriate.

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