Savannah Energy PLC recorded a 10% year-on-year increase in revenue to US$160.6 million in the seven months to 31 July 2026, supported by stronger cash collections in Nigeria and higher production at its Stubb Creek operations.

The British independent energy company said its revenue increased from US$146.0 million in the corresponding period of 2025, while cash collections from its Nigerian business rose 13% to US$247.9 million from US$219.2 million.

Also read: Savannah Energy posts strong Nigeria cash surge

The latest figures provide a positive snapshot of Savannah’s operating performance in Nigeria, even as the company continues to manage high debt levels and unresolved operational matters in Niger and Chad.

Nigeria remained central to the company’s performance during the period.

Savannah said cash collections in Nigeria reached US$247.9 million, representing an increase of US$28.7 million compared with the first seven months of 2025.

The improvement comes as the company works to strengthen its balance sheet. Trade receivables stood at US$394.6 million at the end of July, down 22% from US$508.5 million at 31 December 2025.

Cash balances also improved, reaching US$62.0 million compared with US$42.7 million at the end of 2025.

Net debt, however, increased to US$672.0 million from US$658.8 million at the end of December, highlighting the financial obligations that remain despite the improvement in collections.

Operationally, Stubb Creek provided one of the clearest areas of growth.

Following Savannah’s completion of the SIPEC acquisition in March 2025, the company’s expansion programme at Stubb Creek lifted average gross daily production by 29% year on year to 3.7 thousand barrels of oil per day in the first seven months of 2026.

Average production in July exceeded 5.0 thousand barrels per day.

The increase marks a substantial improvement from the 2.8 thousand barrels per day recorded during the comparable period of 2025.

At group level, however, average gross daily production declined to 16.3 thousand barrels of oil equivalent per day from 18.8 thousand boepd in the first seven months of 2025.

Savannah expects that picture to improve during the remainder of the year.

A significant development at the Uquo field was the successful completion and commissioning of Uquo 13, formerly known as Uquo NE.

Savannah said drilling and completion activities had been concluded and the well was tied back to the Uquo Central Processing Facility.

The well achieved first gas in July and was successfully tested at approximately 50 million standard cubic feet per day.

With Uquo 13 now producing, Savannah expects average gross daily production to exceed 20,000 boepd during the remaining five months of 2026.

The company is forecasting full-year average gross daily production of between 18,000 and 20,000 boepd, with further upside possible from the Uquo South exploration well.

The company spudded the Uquo South exploration well in early August and said the well was being completed.

Gas has been confirmed in most of the targeted reservoirs through pressure measurements, fluid sampling and logging.

Savannah said the discovery would be fully evaluated after completion and the planned testing programme.

The outcome could provide another important boost to the company’s Nigerian gas portfolio, although the commercial significance of the discovery will depend on the results of the evaluation and testing work.

Niger operations remain unresolved

Savannah’s progress in Nigeria contrasts with continued uncertainty around its assets in Niger.

The company said it remains engaged with the Nigerien Government over the R1234 production-sharing contract and the future work programme.

Discussions are focused on disputed contractual and operational issues, including how periods of materially constrained operations should be treated.

Savannah said it continues to reserve its rights under the PSC and will only restart work on the affected assets if a satisfactory agreement is reached with the government.

The company is also awaiting developments in its long-running legal disputes in Chad.

Savannah’s wholly owned subsidiaries, Savannah Chad Inc and Savannah Midstream Investment Limited, began arbitration proceedings against the Government of Chad in 2023 following the nationalisation of assets and alleged breaches of their rights.

The disputes include the nationalisation of Savannah Chad Inc’s interests in the Doba oil fields and Savannah Midstream Investment Limited’s investment in TOTCo, which operates the Chadian section of the Chad-Cameroon pipeline.

The company also has proceedings relating to alleged breaches of its rights concerning COTCo, the company operating the Cameroonian section of the pipeline.

Savannah expects these arbitration proceedings to conclude in the second half of 2026.

A separate arbitration involving claims against Savannah Chad Inc is expected to conclude in the first half of 2027. Savannah said it is defending those claims vigorously.

Savannah Energy chief executive Andrew Knott said the company had made progress across its business and described the performance as providing a strong platform for continued delivery.

“In Nigeria, we increased our rate of cash collections year-on-year by 12%, a trend which we hope to continue into 2026,” Knott said.

He also highlighted the SIPEC acquisition and the subsequent expansion at Stubb Creek, alongside progress at Uquo and the company’s wider power portfolio.

Knott said Savannah was continuing to pursue value-accretive acquisitions across both hydrocarbons and power while progressing wind, solar and hydropower opportunities.

The company’s latest figures therefore present a mixed but broadly constructive picture.

Nigeria is delivering stronger collections and increased production from Stubb Creek, while Uquo 13 is now producing gas and Uquo South offers additional exploration potential.

At the same time, Savannah remains highly leveraged, with net debt above US$670 million, while its Niger operations remain constrained and its Chad disputes have yet to be resolved.

For investors and the wider energy market, the next few months could be particularly important.

Also read: Savannah Energy posts strong Nigeria cash surge

Production from Uquo 13, the outcome of Uquo South testing, progress on debt refinancing and developments in the Niger and Chad disputes will help determine whether Savannah can turn its improving operational momentum into sustained financial growth.