A flash blog today as I’m in the smoke for an interview and company meetings. As always I will speak to the companies later and add comments as soon as possible.

Savannah Energy

Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter, is pleased to announce a trading update for the full year 2024. All figures are unaudited.

Andrew Knott, CEO of Savannah Energy, said:
“I am pleased to provide a FY trading update which demonstrates the continued progress we have made in 2024, a year which saw the highest level of cash collections ever recorded by our Nigerian business. 2025 is expected to be an exciting year for our Company: we have a large planned operational programme in Nigeria which is anticipated to enhance both our oil and gas production levels and capacity; we intend to progress our R3 East oil development project in Niger; we continue to pursue key acquisitions in the upstream oil and gas space; and we continue to seek to build our power business. Fundamentally, Savannah remains unequivocally an “AND” company, seeking to deliver strong performance both for the short AND long term across multiple fronts, and pursuing growth opportunities in both the hydrocarbon AND power sectors.”

Highlights

• Average gross daily production of 23.1 Kboepd for FY 2024, broadly in line with the prior year (FY 2023: 23.6 Kboepd), of which 88% was gas (FY 2023: 91%)1;
• FY 2024 Total Income2 of US$393.6 million (FY 2023: US$289.8 million), comprising Total Revenues3 of US$258.7 million (FY 2023: US$260.9 million) and Other operating income4 of US$134.9 million (FY 2023: US$28.9 million);
• FY 2024 cash collections of US$248.5 million (FY2023: US$206 million). As at 31 December 2024, cash balances were US$32.6 million (31 December 2023: US$107.0 million) and net debt stood at US$634.0 million (31 December 2023: US$473.7 million);
• As at 31 December 2024, NGN 332 billion of the Accugas NGN Transitional Facility had been drawn down, with the resulting funds being converted to US$, which, along with cash held, was used to partially prepay the existing Accugas US$ Facility, leaving a balance as at 31 December 2024 of approximately US$212.3 million;
• Commissioning of the US$45 million Uquo Central Processing Facility compression project in Nigeria is now well underway;
• Procurement process of long lead equipment progressing in Nigeria in preparation for a potential two-well drilling campaign on the Uquo Field in H2 2025, with an additional gas development well expected to add up to 80 MMscfpd of supplemental production capacity and a potential exploration well targeting an Unrisked Gross gas initially in place (“GIIP”) of 154 Bscf (25.7 MMboe) of incremental gas resources;
• Progress continues on the planned acquisition of Sinopec International Petroleum Exploration and Production Company Nigeria Limited, whose principal asset is a 49% non-operated interest in the Stubb Creek oil and gas field (“Stubb Creek”), with regulatory approval and completion being targeted in Q1 2025. Following completion of the acquisition, we intend to commence an expansion programme which is anticipated to increase Stubb Creek gross production from an average of 2.7 Kbopd in 2024 to approximately 4.7 Kbopd;
• Continuing to seek to progress the 35 MMstb (Gross 2C Resources) R3 East oil development in South-East Niger;
• Up to 696 MW of renewable energy projects currently in motion, including the up to 250 MW Parc Eolien de la Tarka wind farm project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon. Savannah continues to target a portfolio of up to 2 GW+ of power projects in motion by end 2026;
• FY 2024 Total Revenues3 were ahead of the previously issued financial guidance of greater than US$245 million’, while FY 2024 financial guidance is reiterated for Operating expenses plus administrative expenses5 at ‘up to US$75 million’. We expect FY 2024 capital expenditure to come in lower than planned (previously guided at ‘up to US$50 million’) due to the phasing of spend; and
• Continuing to progress a potential alternative transaction structure to acquire a material stake in producing oil and gas assets in South Sudan as per our announcement of 20 December 2024.

As I said, much more tomorrow but shareholders should be pleased to see a very good trading update which beat my expectations and I’m sure that of the market. I expected good revenues but the cash inflow was a record and above my best expectations. Outlook is highly promising, more later.

Afentra

Afentra has provided an operational and financial trading update for the year ended 31 December 2024.

Key Highlights

• 2024 Net Average Production: 6,229 bopd
• Strong Asset Performance: redevelopment activity boosted reliability, production and water injection
• Oil Sales: 2.27 million barrels sold at $82/bbl average price, generating $186.7 million revenue
• Asset Level Net Cash Flow: $87.2 million generated post capex, opex and fiscal take
• Year-End Net Cash Position: $12.8 million
• Kwanza Onshore: KON19 license awarded; KON15 award expected early 2025

 Operational & Corporate Overview

 Production and Field Operations

• Gross average production for 2024 was 21,111 bopd (Net: Block 3/05 5,972 bopd; Block 3/05A 257 bopd).
• A 21-day maintenance shutdown in October 2024 delivered critical upgrades to the power supply, subsea infrastructure, and gas metering systems, ensuring improved operational reliability and extended field longevity. A further shutdown is planned for 2025 to further progress the asset redevelopment plans.
• Strong operational performance post-shutdown positively impacted production and water injection rates:
  • Gross average oil production from Block 3/05 and 3/05A reached an average of 24,381 bopd (Net: 7,203 bopd) in December 2024, with the asset remaining on track to deliver the long-term production outlook previously communicated.
  • Water injection system upgrades boosted capacity, achieving rates exceeding 80,000 barrels of water per day (bwpd). A further water injection pump is scheduled to come online in 2025, with injection rates expected to increase to in excess of 100,000 bwpd.
• Over 40 light well interventions ('LWIs') were completed in 2024, successfully contributing over 2,000 bopd of incremental production. A similar number of LWIs are planned for 2025.
• Opex for Blocks 3/05 and 3/05A in 2024 averaged approximately $23/bbl and is expected to be similar in 2025.
• Substantial progress was made in our gas management plan in 2024 with new gas meters successfully installed to allow accurate measurement starting in 2025 and to enable the JV partnership to develop a fieldwide gas export plan.
• Around $150 million gross (Net: $39 million)(1), including life extension costs, was invested in 2024 in the asset redevelopment plan. Gross investment to increase to around $180 million (Net: $54 million)(2) in 2025 to continue to underpin our long-term production outlook.
• End of year Competent Person's Report is ongoing and is anticipated to demonstrate strong reserve replacement. An update to the market will be provided when the report is finalised, expected Q1 2025.

Kwanza Onshore Licenses

• The Company continues to advance its exploration portfolio in the Kwanza Onshore Basin. The license for KON19 was awarded in 2024 and the KON15 license is expected to be formally approved in early 2025. We continue to evaluate additional opportunities in the Kwanza Onshore area. As part of our 2025 work programme for both blocks, the Full Tensor Gravity Gradient (eFTG) survey initiated in 2024 will be completed, enabling a geological overview of the full license areas.

Financial Overview

The company's financial position has undergone a significant transformation over the past 12 months, demonstrating the value generated through strategic acquisitions, stable asset performance, and effective management. Afentra closed 2024 with $54.8 million in cash ($19.6 million at 31 December 2023) achieving an end of year net cash position of $12.8 million. Strong crude oil sales totaling 2.27 million barrels at an average realised price of $82/bbl drove asset level cash flow generation of $87.2 million related to Afentra's equity in 2024. With this robust financial foundation, Afentra enters 2025 well positioned to deliver further growth and strategic M&A. The Company intends to release its financial and operating results for the full year 2024 in April 2025.

Key Financials at 31 December 2024

• Revenue of $186.7 million
• Cash resources of $54.8 million (includes $7.9 million of restricted funds)
• Debt drawdowns:
  • Reserve Based Lending Facility: $42.0 million
  • Working Capital Facility: zero
• Net cash of $12.8 million

 Crude Oil Sales and Hedging

• Total crude oil sales for 2024 totaled 2.27 million bbls, with four liftings completed during the year.
• At year-end 2024, Afentra held approximately 32,000 bbl of stock-in-tank.
• Average realised price for crude sales in 2024 was $82/bbl.
• Four liftings are anticipated, evenly distributed, across the four quarters of 2025, supporting steady cash flow generation.
• Afentra has currently hedged around 60% of production in 2025 using a combination of put options and collar structures. Current quarterly hedging uses a combination of $60 to $65/bbl put options over 60% of estimated sale volumes and call options between $80 to $89/bbl over 35% of estimated sales volumes.

The Company will maintain a disciplined approach to financial management ensuring operational investments are supported by a robust balance sheet and proactive risk mitigation measures, such as hedging, to manage oil price volatility. The Company will continue with its balanced approach, continually reviewing capex plans, to prioritise investments that deliver clear returns and align with long-term objectives.

Paul McDade, Chief Executive Officer, Afentra plc commented: 
"2024 was a transformative year for Afentra, marked by the successful completion of the Azule transaction, through which we now hold a 30% interest in Block 3/05 and a 21.33% interest in Block 3/05A. These asset acquisitions have transformed our company, delivered strong cash flow and, following the receipt of proceeds from the Q4 lifting, we achieved acquisition payback for the three completed deals. Combined with our disciplined financial management, this underpins our strong financial position.

 Operationally, we made good progress in executing the redevelopment plan presented in our webinar in June 2024, achieving improved production performance and a substantial increase in water injection capacity, setting the stage for sustainable growth in the years ahead. With a clear focus on continuing our asset redevelopment strategy, we expect strong reserves replacement in 2024 and remain on track to deliver the long-term production growth potential outlined in our June 2024 webinar.

 A key highlight of the Azule transaction was our ability to complete it without raising equity, reflecting our commitment to preserving and enhancing shareholder value. As we look to further growth through strategic M&A, our disciplined approach will prioritise high-quality, cash-generative assets that align with our strategic priorities."

Afentra remains a solid favourite and will return to the upcoming bucket List right at the top of last years performers with no reason to believe that it won’t repeat that feat this year. I will try and talk to the company this afternoon or tomorrow and revert.

Investor Webinar Presentation

Afentra plc will host a live online investor presentation via the Investor Meet Company on Thursday 30 January 2025 10:30am GMT platform, to provide a review of 2024, share an outlook for 2025, and answer questions.

In order to participate please register at Investor Meet Company platform for free and add to meet AFENTRA PLC via:  https://www.investormeetcompany.com/afentra-plc/register-investor

Company presentation can be accessed here: https://afentraplc.com/wp-content/uploads/2025/01/FY24_Trading_Update.pdf

(1) Net 2024 investment reflects spending attributable to Afentra’s working interests in Block 3/05 and 3/05A during the year, both pre and post the Azule transaction completion in May 2024, and does not reflect pro-rata spend based on Afentra’s current working interests.
(2) Number reflects Afentra’s working interest in Block 3/05 & 3/5A.

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog