Savannah Energy Plc has said its average gross production in Nigeria increased by 17.7 per cent to 21,300 barrels of oil equivalent per day in the first half of this year from 18,100 boepd in the same period of 2019.
The African-focused British independent energy company said in a statement that it posted $91.7m in revenues for the six months ended June 30, 2020.
The Chief Executive Officer of Savannah Energy, Andrew Knott, said, “I believe that our first-half results clearly demonstrate the transformation Savannah has undergone to become a cash generative business, benefitting from a long-dated, gas-biased revenue stream with no meaningful oil price exposure.
“I am pleased that we are able to reiterate our core FY 2020 total revenues ($200m+) and cost guidance ($68.0 – $72.0m) today, while also reporting cash collections in the period to end of August of $133.1m. Over 94 per cent of our forward revenue guidance is derived from three gas sales agreements with a weighted average contracted life of 15 years.”
The firm said production from the Uquo gas field in Akwa Ibom increased by 22.4 per cent to 113.5 million standard cubic feet per day (18,900 boepd) in H1 2020 from 92.7 mmscfpd (15,400 boepd).
It said Accugas, its subsidiary, increased gas supply to the Nigeria power sector by 35 per cent in H1 2020.
“While Accugas’ customers achieved an all-time record peak contribution of 11.5 per cent of Nigeria’s electricity generation or 486MW on May 23, 2020, with the contributed electricity being exclusively generated from Accugas sales gas,” it added.
According to the statement, on January 31, 2020, Accugas entered into the first new gas sales agreement for the business in over five years with First Independent Power Limited for the provision of gas to the FIPL Afam power plant.
“Accugas is in the process of working with FIPL to validate the third-party infrastructure required to enable the commencement of gas sales,” it said.
