Savannah Aims for First Gas from Uquo Well by Q1

Savannah Energy aims to achieve initial gas output from its Uquo Northeast development well during the first quarter of 2026, as part of its ongoing efforts to expand its natural gas operations in Nigeria.

A UK-based independent energy firm revealed this in its operating and financial report covering the first 11 months up to 30 November 2025.

As per the company, the construction at the well site for the Uquo NE development well is almost finished, earlier than scheduled for the drilling initiative this year.

It mentioned, "The construction of the Uquo NE development well is nearing completion and is anticipated to finish this year."

Savannah mentioned that operations at the location are set to begin in January 2026, followed by gas output soon thereafter.

"Drilling at the Uquo NE site is set to start in January 2026, with initial gas production expected by the end of the first quarter of 2026, aiming to supply up to 80 million standard cubic feet of gas daily," the company stated.

The firm mentioned that the Uquo gas project benefits from the installation of a new compression system at the Uquo Central Processing Facility.

The compression initiative at the Uquo CPF has been finalized and officially put into operation," Savannah stated, noting that the project "was accomplished roughly 10 percent below the initial $45 million budget.

It stated that the facility "is anticipated to help us achieve maximum output from our current and upcoming natural gas wells."

Savannah stated that gas continued to be the main element of its activities in Nigeria, with an average total daily output of 19.1 thousand barrels of oil equivalent during the time frame, of which 84 percent consisted of gas.

The organization revealed that work has begun on additional drilling operations at the Uquo field.

"Site preparation has also begun for the Uquo South exploration well, aiming at an untested total gas volume estimated at 131 billion standard cubic feet of additional potential gas reserves within the Uquo license area," it mentioned.

Regarding natural gas sales, Savannah mentioned that its Accugas division has obtained an extended agreement with Central Horizon Gas Company Limited until the end of December 2026.

"The company's Accugas division has entered into an extended agreement with CHGC until the end of December 2026 to provide as much as 10 million standard cubic feet of gas daily," it stated.

Savannah also highlighted recent actions taken by the federal government in the energy industry, stating that these measures might enhance revenue collection from natural gas sales.

It was mentioned, "The government effectively issued a N590 billion initial batch of bonds during the fourth quarter of 2025 under an overall N4 trillion bond initiative aimed at paying confirmed outstanding bills due to Gencos and gas providers."

As stated by the company, this progress "has generated new positive energy in the talks between Accugas Ltd, which is 80% owned by Savannah, and its offtakers—Gencos—as they work towards repaying the company's unpaid invoices more quickly."

Speaking about the company's general performance, Savannah's CEO, Andrew Knott, stated, "In Nigeria, we improved our cash collection rate compared to last year and achieved substantial advancement in restructuring our loan agreements."

He mentioned that the achievements made throughout the year "offer a solid foundation for ongoing implementation in 2026."

Supplied by SyndiGate Media Inc. ( Syndigate.info ).