NIGERIA: Updated CPR Report Increases Savanna Energy’s 2P Reserves by 27%

An updated Competent Person’s Report CPR was compiled by CGG Services (UK) Ltd covering Savanna Energy’s assets in Nigeria has placed them at 108.6 MMboe 2P Reserves up from 85.5MMboe in 2019 with with additional 99.7 MMboein  2C Contingent Resources up from 98.0MMboe in 2019.

The significant increase is attributed to a 27% increase to Gross Uquo 2P Reserves driven by the new Pre-Stack Depth Migration re-processing/re-interpretation of the Uquo 3D seismic survey and better than prognosis from the newly drilled Uquo-11 well.

All Reserves presented above are as at 30 September 2021. Please note for comparison purposes, the production between the two CPRs has been deducted from the Reserves in the Nigeria CPR dated December 2019.

The company says the Uquo-11 gas producer well has been drilled and was completed in the D1.0 and D1.3/D1.4 reservoirs on 16 November 2021. The well total net pay thickness came 71ft above prognosis, with a total thickness of 355ft for the main reservoirs’ targets (i.e. C9.0, D1.0 and D1.3/D1.4 reservoirs).

Front End Engineering Design (FEED) is progressing for the Uquo compression project.

Savannah also reports that year to date period ended 31 October 2021 was 21.9 Kboepd, a 16% increase on the average gross daily production of 19.0 Kboepd in same period last year.Of the total average gross daily production of 21.9 Kboepd in the year-to-date period ended 31 October 2021, 88% was gas, including a 16% increase in production from the Uquo gas field compared to the same period last year, from 99.5 MMscfpd (16.6 Kboepd) to 115.6 MMscfpd (19.3 Kboepd).

Savannah is keeping its FY 2021 guidance forecasting total revenues of greater than US$205.0m from upstream and midstream activities associated with the Company’s three active Nigerian gas sales agreements and liquids sales from the Company’s Stubb Creek and Uquo fields;

The Company also started ordering compression equipment for the Accugas gas processing plant during the first half of 2021. Factory Acceptance Tests for the two compressor packages have been successfully carried out, the Front End Engineering Design is in progress and it expects the Long Lead Items to be ordered before the year end. Both the drilling and compression projects will ensure our continued ability to deliver gas at current and anticipated future increased contracted volumes to satisfy customer demand.

Andrew Knott, CEO of Savannah Energy, said:  

“I am extremely pleased to announce the publication of our updated CPR covering the Company’s asset in Nigeria, showing a 27% organic increase in Group 2P reserves. This progression shown in the heart of our business has been replicated in our financials as we maintain a positive year of growth with total revenues up 7% against the same period last year as we reiterate guidance for 2021. Operationally we have successfully drilled and completed the Uquo-11 gas production well, below budget and at a significantly lower cost than previous Uquo wells drilled by our subsidiary company. We look forward to continuing our positive progress through the rest of the year and we expect to update shareholders as to progress made in relation to the Proposed Acquisition (as defined below) when appropriate. We remain confident in our Company’s outlook.”

Savannah holds an 80% economic interest in the exploration, development and production of gas within the Uquo field and in Accugas. At the Stubb Creek Field Savannah holds a 51% operating interest with the remaining 49% interest held by Sinopec