Savannah Energy plc has announced its unaudited preliminary results for the 2019 financial year, which include approximately six weeks of operations in Nigeria, following the successful acquisition of Nigerian assets in November 2019, together with a financial and operational update for the first half of 2020.
The company recorded full year 2019 maiden revenues of $17.8 million comprising $16.9 million of gas sales and $0.9 million of liquids sales. Production from the company’s Nigerian assets for 2019 rose 32 percent to 17.2Kboepd from 13.0Kboepd in 2018.
Andrew Knott, CEO of Savannah Energy, speaking about the financial results, said: “2019 was a pivotal year for our company. We completed the Nigerian Asset acquisition in November 2019, which transformed Savannah into a highly cash flow generative full cycle energy company.
“Since acquiring the Nigerian Assets, we have made significant strides in terms of operational and financial progress, as seen with the strong production figures and robust cash collections in H1 2020, further strengthened our leadership team and stand poised to capitalise on the numerous opportunities that our asset portfolio in Nigeria and Niger presents us with.’’
In the first half of 2020, cash collections from the Nigerian assets stood at $82.1 million compared to $55.3 million within the same period in 2019. Average gross daily production, of which 89 percent was gas, increased 18 percent during the first half of 2020 to 21.3Kboepd compared to 18.1Kboepd in 2018.
Savannah Energy’s operations in Nigeria have seen it make significant contribution to power supply in the country. Accugas’ customers achieved an all-time record peak contribution of 11.5 percent of Nigeria’s electricity generation or 486MW on May 23, 2020, with the contributed electricity being exclusively generated from Accugas sales gas.
