Savannah Energy, a British independent energy company focused on Africa, plans to launch a new drilling campaign at its Uquo gas field in Nigeria in January 2026, targeting both development and exploration opportunities to increase output, the company announced.

The LSE-floated company has signed a turnkey contract for up to two wells on the Uquo licence. The first, Uquo NE, is expected to begin drilling at the start of 2026, with first gas scheduled by the end of the first quarter of the year. The well is forecast to deliver up to 80mn standard cubic feet per day (MMscfpd). A second prospect, Uquo South, is under consideration and could follow immediately, with potential to unlock 131bn standard cubic feet (Bscf) of prospective gas resources.

The development comes as Savannah completes commissioning of a new compression system at the Uquo Central Processing Facility, delivered 10% below its $45mn budget.

The upgrade will enable the company to maximise output from both current and future wells. Uquo remains central to Savannah’s Nigerian gas business, which supports long-term contracts with power plants and industrial customers.

Company CEP Andrew Knott said the project is a core part of Savannah’s nine strategic priorities for 2025, which also include debt refinancing, acquisitions and expansion of the company’s Stubb Creek oil operations. 

Beyond Nigeria, Savannah is progressing renewables projects in Niger and Cameroon while pursuing arbitration claims totalling more than $1bn over the nationalisation of assets in Chad. However, Uquo remains a cornerstone of its portfolio, providing stable cash flow and capacity for expansion as domestic gas demand rises.

If successful, the Uquo South well would provide significant additional supply, adding to Nigeria’s domestic base and strengthening Savannah’s position as a leading independent gas producer.

Savannah Energy reported $258.7mn in revenue for the 2024 financial year, a marginal decline from $260.9mn in 2023. However, total income increased significantly to $393.6mn, up from $289.8mn, reflecting improvements in operational efficiency and income streams. The company’s Nigerian operations were instrumental, with gross production averaging 23.1k barrels of oil equivalent per day (boepd), of which 88% was gas. Its midstream subsidiary, Accugas, bolstered performance with ongoing developments at the Uquo Central Processing Facility.