Savannah Energy says it is targeting first gas production from its Uquo North East development well in the first quarter of 2026, as it advances its gas expansion programme in Nigeria.

The British independent energy company disclosed this in its operational and financial update for the 11 months ended 30 November 2025.

According to the company, well site construction for the Uquo NE development well is nearing completion, ahead of the planned drilling campaign early this year.

It stated, “Well site construction is in the final stages for the Uquo NE development well and is expected to be completed this year.”

Savannah said drilling at the site is scheduled to commence in January 2026, with gas production expected shortly after.

“Drilling for Uquo NE is scheduled to begin in January 2026, with first gas targeted by the end of Q1 2026 and forecast to deliver gas volumes of up to 80 million standard cubic feet per day,” the company said.

The company noted that the Uquo gas development is supported by the completion of a new compression system at the Uquo Central Processing Facility.

“The compression project at the Uquo CPF was completed and fully commissioned,” Savannah said, adding that the project “was delivered approximately 10 per cent under the original $45 million budget.”

It explained that the facility “is expected to allow us to maximise the production from our existing and future gas wells.”

Savannah reported that gas remained the dominant component of its Nigerian operations, with average gross daily production of 19.1 thousand barrels of oil equivalent per day during the period, of which 84 per cent was gas.

The company also disclosed that preparations had commenced for further drilling activities on the Uquo field.

“Well site preparation has also commenced on the Uquo South exploration well, which is targeting an unrisked gross gas initially in place of 131 billion standard cubic feet of incremental prospective gas resources on the Uquo licence area,” it stated.

On gas sales, Savannah said its Accugas subsidiary had secured a contract extension with Central Horizon Gas Company Limited to the end of December 2026.

“The company’s Accugas subsidiary agreed to a contract extension with CHGC to the end of December 2026 to supply up to 10 million standard cubic feet of gas per day,” it said.

Savannah also pointed to recent interventions by the Federal Government in the power sector, which it said could improve cash recovery from gas sales.

It stated, “The government successfully launched a N590 billion first tranche bond issuance in Q4 2025 as part of a wider N4 trillion bond programme to settle verified legacy invoices owed to Gencos and gas suppliers.”

According to the company, this development “has created renewed positive momentum in the discussions Accugas Ltd, an 80 per cent Savannah-owned subsidiary, is having with its offtakers that are Gencos around the repayment of the company’s outstanding receivables balance in an accelerated manner.”

Commenting on the company’s overall performance, Savannah’s Chief Executive Officer, Andrew Knott, said, “In Nigeria, we increased our rate of cash collections year-on-year and made significant progress in refinancing our debt facilities.”

He added that the progress recorded during the year “provides a strong platform for continued execution in 2026.”