Andrew Knott of Savannah Energy provides a financial & operational update including Nigeria's Gross 2P Reserves increasing by 27%

Andrew Knott CEO of Savannah Energy #SAVE provides a financial & operational update including Nigeria's CPR upgrade which increased Gross 2P Reserves by 27%.

Key Highlights

Updated Competent Persons Report for Nigeria

· Certification by CGG of 108.6 MMboe 2P Reserves (2019 CPR[1]: 85.5MMboe) with additional 99.7 MMboe 2C Contingent Resources (2019 CPR1: 98.0MMboe);

· Significant 27% increase to Gross Uquo 2P Reserves driven by the new Pre-Stack Depth Migration ("PSDM") re-processing/re-interpretation of the Uquo 3D seismic survey and better than prognosis from the newly drilled Uquo-11 well; and

· Nigerian Assets[2] gross NPV10 of US$1.2bn assessed by CGG (NPV10 net to Savannah of US$954m).

Financial Highlights

· Total Revenues[3] up 7% y-o-y to US$192.5m for the 10 months ended 31 October 2021 (year-to-date period ended 31 October 2020: US$180.2m);

· Group cash balance of US$130.8m[4] and net debt of US$382.7m as at 31 October 2021 (as at 31 October 2020: US$80.7m and US$433.3m respectively);

· Total cash collections from the Nigerian Assets up 6% to US$149.2m for the 10 months ended 31 October 2021(year-to-date period ended 31 October 2020: US$141.1m);

· We reiterate our FY 2021 guidance for the following:

o Total Revenues3 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;

o Group Administrative and Operating Costs5 of US$55.0m - US$65.0m;

o Group capital expenditure of up to US$65.0m; and

· We are revising our Group Depreciation, Depletion and Amortisation guidance from US$19m fixed for infrastructure assets plus US$2.6/boe, to US$20m fixed for infrastructure assets plus US$2.3/boe primarily as a result of the reserves increase at the Uquo field.

Operational Highlights

· Successful drilling and completion of the Uquo-11 gas production well, below budget;

· Average gross daily Nigeria production in the year-to-date period ended 31 October 2021 was 21.9 Kboepd, a 16% increase from the average gross daily production of 19.0 Kboepd in the same period last year;

· Of the total average gross daily production of 21.9 Kboepd in the year-to-date period, 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);

· Front End Engineering Design ("FEED") progressing for the Uquo compression project; and

· On 2 June 2021, Savannah announced that the Company is in exclusive discussions with ExxonMobil Corporation with respect to the proposed acquisition of its entire upstream and midstream asset portfolio in Chad and Cameroon (the "Proposed Acquisition"). The Proposed Acquisition continues to progress, and the Company expects to provide a further update in the coming weeks.

About Savannah Energy
Savannah Energy PLC is an AIM listed African-focused British independent energy company sustainably developing high quality, high potential energy projects in Nigeria and Niger, with a focus on delivering material long term returns for stakeholders. In Nigeria, the Company has controlling interests in the cash flow generative Uquo and Stubb Creek oil and gas fields, and the Accugas midstream business in South East Nigeria, which provides gas enabling over 10% of Nigeria's thermal power generation. In Niger, the Company has licence interests covering approximately 50% of the highly oil prolific Agadem Rift Basin of South East Niger, where the Company has made five oil discoveries and seismically identified a large exploration prospect inventory consisting of 146 exploration targets to be considered for potential future drilling activity.