Savannah Petroleum confirms quality of Nigerian assets in CPR

Independent oil and gas company Savannah Petroleum confirmed the high quality of its Nigerian assets on Wednesday following the publication of a competent person's report.

The CPR, which covered the Uquo and Stubb Creek fields as well as the recently acquired Accugas midstream business, confirmed previous estimates of gross and net 2P reserves of 99.6 million barrels of oil equivalent and 71.0 mmboe respectively, and gross and net 2C resources of 98.0 mmboe and 58.6 mmboe, respectively.

Savannah also revealed that gross production across its Nigerian assets had risen 33% to 17,300 barrels of oil equivalent per day in the ten months ended 31 October - exceeding the 13,000 boepd recorded during 2018.

As part of Savanna's ongoing gas field development plan at Uquo, the group plans to drill and complete a gas production well, re-complete an oil well as a gas producer and to work over one of the current gas production wells at an estimated cost of $34.5m.

Cash collections at the Nigerian assets in 2019 were expected to be roughly $190m.

Savannah also highlighted that production costs over the 2016-2019 period had decreased by approximately 18%.

Chief executive Andrew Knott said: "We continue to view these assets as a strong platform from which we will deliver further growth.

"In this regard, we continue to make good progress in relation to the supply of gas to potential new customers, and are investing in additional well stock to ensure anticipated future production levels are capable of being met."

As of 1030 GMT, Savannah shares had climbed 8.17% 22.50p.