Savannah Energy PLC (AIM:SAVE) has announced that its Uquo 13 well in Nigeria has started producing gas while the neighbouring Uquo South exploration well has encountered gas in most of its targeted reservoirs, potentially adding further resources to the licence.
Uquo 13 achieved first gas in July after testing at around 50 MMscfd. Uquo South, which spudded in early August targeting an unrisked gross 131 Bscf of gas initially in place, is being completed ahead of testing and evaluation to determine the scale and resource implications of the discovery.
Group average gross production stood at 16.3 Kboepd for the first seven months of 2026.
With Uquo 13 now online, Savannah expects output to exceed 20 Kboepd over the remaining five months and reiterated full-year guidance of 18–20 Kboepd, with potential upside from Uquo South. At Stubb Creek, average gross production increased 29% to 3.7 Kbopd and topped 5.0 Kbopd in July.
Financially, seven-month revenue rose 10% to $160.6 million and cash collections increased 13% to $247.9 million.
Cash stood at $62 million at the end of July and net debt at $672 million, while trade receivables declined 22% from December to $394.6 million. Savannah also increased its Stubb Creek reserve-based lending facility to $130 million and extended maturity to August 2031.
The company expects to publish its delayed financial year 2025 annual report in September, with trading in its AIM-listed shares remaining suspended until publication.
Its principal Chad arbitration proceedings, where subsidiaries are claiming more than $775 million plus interest and costs, are currently expected to conclude during the second half of 2026.
