Savannah Energy, a London-listed oil and gas company, is gearing up to drill a high-potential exploration well in Nigeria, targeting a gas prospect estimated to hold over 150 billion cubic feet (Bcf) of natural gas. The well is located near its existing Uquo asset, which has been a cornerstone of the company’s Nigerian operations.
The company is also finalizing a $45 million gas compression project at Uquo, which aims to enhance production capacity. One compressor is already online, and the second is set for commissioning by the end of June 2025. Savannah announced that the project is being delivered under budget, a move that is expected to boost gas output from current and future wells.
In its Q1 2025 trading update, Savannah revealed progress on procuring long-lead equipment in anticipation of a potential two-well drilling campaign at Uquo, expected to commence in Q4 2025. The campaign includes the Uquo North East (NE) development well, projected to produce up to 80 million cubic feet per day (MMcf/d), and the Uquo South exploration well, which targets an estimated 154 Bcf of unrisked gas-in-place resources.
Meanwhile, in Niger, Savannah is planning a well-testing campaign at its Amdigh-1, Eridal-1, Bushiya-1, and Kunama-1 discovery wells in the R3 East Area. This campaign is contingent on finalizing stakeholder agreements and could start by late 2025. Oil from these wells is expected to flow into the China-owned Niger-Benin oil pipeline, which currently handles about 90,000 barrels per day (bpd) from CNPC International’s Agadem permit.
Savannah estimates the well-test program will cost approximately $14.5 million, and a successful outcome would accelerate its plans to begin commercial oil production in the R3 East Area, potentially unlocking 35 million barrels of oil in southeastern Niger.
In its recent financial statement, Savannah reported an average production of 23,600 barrels of oil equivalent per day (boepd) in Nigeria during the first quarter of 2025, remaining steady compared to the same period in 2024.
