Savannah Energy plans drilling campaign, awaits nod for SIPEC acquisition
Savannah Energy Plc, a British independent energy company, has said plans are underway to commence a two-well drilling campaign on the Uquo Field in the first half of 2025.
It said on Tuesday that an additional gas development well is expected to add up to 80 million standard cubic feet per day of incremental production capability and an exploration well targeting an unrisked gross gas initially in place of 154 billion scf of incremental gas resources.
The company said its planned acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited (SIPEC) is expected to secure regulatory approval in early 2025.
In March 2024, Savannah announced the proposed acquisition of 100% of SIPEC for a total consideration of $61.5 million. SIPEC’s principal asset is the 49% non-operated interest in the Stubb Creek Field, according to a statement.
“We are currently targeting receipt of regulatory consent for the acquisition in early 2025, with completion following later in Q1 2025,” it said. “Following completion of the SIPEC acquisition, we plan an expansion programme to increase the processing capacity of the Stubb Creek Field facilities.”
The company expects that this will lead to Stubb Creek Field gross production increasing from 2,600 barrels of oil equivalent per day (bopd) (average for 1 January – 31 October 2024) to about 4,7000 bopd.
“Importantly, the SIPEC Acquisition also secures significant additional feedstock gas available for sale to our Accugas subsidiary.”
In October 2024, the company’s subsidiary, Savannah Energy SC Limited, signed a new $60 million RBL facility arranged by The Standard Bank of South Africa with a tenor of four and a half years. The RBL is structured along standard terms for a facility of this nature with amortisation commencing 12 months after drawdown and carries an interest rate of SOFR + 8.5% (reducing to 8% once certain milestones have been achieved).
