WTI (Mar) $65.14 +$1.93, Brent (Apr) $69.46 +$2.13, Diff-$4.32 +20c
USNG (Mar) $3.47 +16c, UKNG (Mar) 81.6p +0.99p, TTF (Mar) €34.69 +€1.345

Oil price

The oil price rose sharply yesterday as rumours that the nuclear talks between Iran and the USA had been called off, today oil has fallen as they are back on but in Oman after high level pressure from senior Arab leaders forced hands. 

As I have previously written, inventory stats will be at best inconsistent for the time being following the storms in the USA. Yesterday’s API numbers were not followed by a huge draw in crude but at 3.455m barrels it was enough to please the bulls. 

Savannah Energy

Savannah Energy PLC, the British independent energy company focused around the delivery of Projects that Matter is pleased to provide the following operational and financial update for FY 2025. All figures are unaudited.

Andrew Knott, CEO of Savannah, said:
“2025 was a year of execution for Savannah with good progress delivered across the nine focus areas we set out at the start of the year. In Nigeria, we increased our rate of cash collections year-on-year by 12%, a trend which we hope to continue into 2026, and have made significant progress in refinancing our debt facilities.

In our Hydrocarbons Division, the completion of the SIPEC acquisition in March enabled us to commence an expansion programme at Stubb Creek, increasing 2025 production materially above 2024 levels. At Uquo we delivered the new compression system under budget and advanced site construction ahead of the planned commencement of drilling of the new Uquo NE well. During the year, we also announced a 21% 2P Reserves upgrade at the Uquo gas field and a 29% upgrade to Stubb Creek oil field 2P Reserves. In Niger, we remain actively engaged with the Government on future activity, with the R3 East development plan significantly enhanced during the year.

In the power sector, we repositioned our business model and advanced both operating and development opportunities, including the proposed acquisition of interests in three East African hydropower projects, which is targeted for completion in H1 this year. We have also continued to progress on our wind, solar and hydro portfolio. Alongside this, we continue to pursue further value-accretive acquisitions across both hydrocarbons and power, with several other opportunities under active discussion.

We also continued to progress our arbitration claims, with the Savannah Chad Inc (“SCI”) and Savannah Midstream Investment Limited (“SMIL”) proceedings currently expected to be concluded in the first half of 2026.

Overall, this progress provides a strong platform for continued delivery in 2026.“

This is a good update from Savannah showing, as it does, good progress across the nine focus areas set out at the start of the year. Amongst most important features are the 12% increase in YoY cash collections to $287m and a 6% reduction in the trade receivables balance YoY to $507m.

Total revenues of $235m ($258.9m) with significant progress having been made in refinancing the debt facilities with the remaining principal balance of Accugas $ facility repaid in early 2026 as forecast in the last update. This was aided by the FY average gross daily production of 18.8 kboepd (23.1kboepd) which was in line with guidance.

Operationally there is plenty to report, well site construction for the Uquo NE development well is expected to be completed this month. The rig is ready for deployment, with mobilisation scheduled over the next few weeks and first gas targeted by the end of Q2 2026, forecast to deliver gas volumes of up to 80 MMsfpd. In addition well site preparation also commenced on the Uquo South exploration well which is targeting an unrisked Gross GIIP of 131 Bscf of incremental Prospective gas Resources.

Elsewhere, Stubb Creek average gross daily production increased to 3.0 Kbopd in 2025, approximately 13% above the 2024 average. The full expansion programme, expected to take up to 18 months, is anticipated to raise gross production to as much as 4.7 Kbopd. While the engineering stage of the facility expansion is well underway, an initial phase of the expansion programme is being fast-tracked to enable a faster production ramp-up anticipated by the end of Q1 2026. Finally, in Niger, Savannah is considering commencing a four-well testing programme and/or a return to exploration activity in 2026/27.

In the Power Division, the proposed acquisition of interests in three East African hydropower projects, including Savannah’s first operating asset, the 250 MW Bujagali hydropower plant in Uganda, is expected to complete in H126. 

Savannah is also in an exclusivity period for the acquisition of a portfolio of renewable projects with an aggregate gross capacity of 100MW and a strong payment history. Good progress continues to be made on Savannah’s greenfield projects in development – the up to 250MW Tarka wind farm in Niger and the up to 95MW Bini a Warak hybrid hydroelectric and solar project in Cameroon.

Finally there is plenty of activity in M&A, the company maintains an active business development pipeline and is confident of announcing further transactions over the course of the next 24 months in the African oil and gas and power space. Indeed, as CEO Andrew Knott states, ‘we continue to pursue further value-accretive acquisitions across both hydrocarbons and power, with several other opportunities under active discussion’.

I wrote up Savannah on 16th January where I noted ‘that Savannah is in good shape operationally, has plans to continue to expand both organically and by selective accretive acquisitions and has solid and strong strategic shareholder backing, including importantly a stake of 13.81% held by CEO Andrew Knott’.

That has not changed, indeed with this update things are clearly moving along strongly and the shareholding by NIPCO has increased to 27.93% from 22.47%. The outlook remains positive and with this support as well as a big stake in the company held by Andrew Knott shareholders should be comforted. 

Highlights

Operational

• FY 2025 average gross daily production of 18.8 Kboepd (FY 2024: 23.1 Kboepd), of which 83% was gas (FY 2024: 88%)1. Following completion of the SIPEC Acquisition in March 2025, commenced an 18-month expansion programme that saw Stubb Creek average gross daily production increase to 3.0 Kbopd in 2025, approximately 13% above the 2024 average;
• Well site construction for the Uquo NE development well is expected to be completed this month. The rig is ready for deployment, with mobilisation scheduled over the next few weeks and first gas targeted by the end of Q2 2026;
• Well site preparation has commenced on the Uquo South exploration well;
• New compression system at the Uquo Central Processing Facility (“CPF”) completed and fully commissioned. This project, which was delivered safely and approximately 10% under the original US$45 million budget, is expected to allow us to maximise the production from our existing and future gas wells;
• Gas contract extension agreed with the Central Horizon Gas Company Limited (“CHGC”) to end December 2026 for up to 10 MMscfpd;
• The proposed acquisition of indirect interests in three East African hydropower projects is targeted to complete in H1 2026. The assets include the 255 MW Bujagali power plant, with a 13-year operating and payment track record, and two advanced-stage development projects, marking Savannah’s potential for entry into five new countries – Uganda, Burundi, the Democratic Republic of the Congo (the “DRC”), Malawi and Rwanda;
• Continuing to progress our existing priority Power Division projects, 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;
• Subject to a satisfactory agreement being reached with the Government of Niger, our subsidiary is considering commencing a four-well testing programme and/or a return to exploration activity in the R1234 PSC contract area in 2026/27; and
• Actively reviewing opportunities in both the thermal and renewable power sector, with the expectation of announcing transaction(s) currently under consideration over the course of the next 24 months in the African power space.

Financial (unaudited)

• FY 2025 cash collections increased by over 12% on the prior year to US$278.0 million (FY 2024: US$248.5 million) and this trend has continued into 2026 with cash collections during January 2026 of over US$64.4 million (January 2024: US$20.4 million);
• FY 2025 Total Revenues2 of US$235.0 million (FY 2024: US$258.9 million);
• As at 31 December 2025, cash balances were US$39.5 million (31 December 2024: US$32.6 million) and net debt stood at US$655.9 million (31 December 2024: US$636.9 million). Gross debt as at 31 December 2025 was US$698.4 million, of which only US$39.0 million (6%) was recourse to the Company, with the balance sitting within subsidiary companies on a non-recourse basis;
• The Trade Receivables balance as at 31 December 2025 was US$507.2 million, a 6% improvement on year-end 2024 (31 December 2024: US$538.9 million); and
• Following the previously announced increase in the Accugas debt facility from NGN340 billion to up to approximately NGN772 billion (the “Transitional Facility”), as at 31 December 2025, there was a remaining principal balance under the US$ Facility of approximately US$2 million, which has been repaid in early 2026.

Operational Update

Hydrocarbons Division

Average gross daily production was 18.8 Kboepd for FY 2025 (FY 2024: 23.1 Kboepd), of which 83% was gas (FY 2025: 88%)1.

On 10 March 2025, we announced the completion of the SIPEC Acquisition. Following completion, we commenced a planned production expansion programme that saw Stubb Creek average gross daily production increase to 3.0 Kbopd in 2025, approximately 13% above the 2024 average. The full programme, expected to take up to 18 months, is anticipated to raise gross production to as much as 4.7 Kbopd. While the engineering stage of the facility expansion is well underway, an initial phase of the expansion programme is being fast-tracked to enable a faster production ramp-up anticipated by the end of Q1 2026.

The compression project at the Uquo CPF was completed and fully commissioned. This project, which was delivered approximately 10% under the original US$45 million budget, is expected to allow us to maximise the production from our existing and future gas wells.

The Company’s Accugas subsidiary agreed a contract extension with CHGC to end December 2026 to supply up to 10 MMscfpd of gas. This represents the fourth such extension to the original contract signed with CHGC in February 2022. CHGC is a major gas distribution company situated in the South-South region of Nigeria, operating a 17 km gas pipeline infrastructure network providing natural gas to industrial and commercial users in the Trans Amadi Industrial Area of Port Harcourt as well as the greater Port Harcourt Area, Nigeria.

The timing for the Uquo NE development well has been updated. Well site construction is in the final stages and is expected to be completed this month. The rig is ready for deployment, with mobilisation scheduled over the next few weeks and first gas targeted by the end of Q2 2026. Uquo NE is forecast to deliver gas volumes of up to 80 MMscfpd. Well site preparation has also commenced on the Uquo South exploration well, which is targeting an Unrisked Gross GIIP of 131 Bscf of incremental Prospective gas Resources on the Uquo licence area.

The Company notes the supportive public statements made by various officials of the Government of Nigeria during 2025 and into early 2026 regarding the Nigerian electricity sector, stating that His Excellency President Bola Tinubu  approved a US$2.6 billion financing package to assist companies operating within the power industry settle outstanding verified invoices to power generation companies (“Gencos”) and subsequently to gas supply companies. As part of this programme, the Government successfully issued a NGN590 billion first tranche sovereign bond in Q4 2025, as part of a wider NGN4 trillion bond programme to settle verified legacy invoices owed to Gencos and gas suppliers. This has created renewed positive momentum in the discussions Accugas Ltd, an 80% Savannah owned subsidiary, is having with its offtakers that are Gencos around the repayment of the Company’s outstanding receivables balance in an accelerated manner. 

We continue to actively engage with the Government of Niger around our forward work programme plans. Subject to a satisfactory agreement being reached with the Government, our subsidiary is considering commencing a four-well testing programme and/or a return to exploration activity in the R1234 PSC contract area in 2026/27. The R3 East development plan, itself, has been significantly re-worked since the last published Niger Competent Persons’ Report (“CPR”) of December 2021, with a plateau production rate of around 10 Kbopd now assumed (previously 5 Kbopd). The Company has updated its internal management estimates of the potential PV10 value (on an unrisked basis) at an asset level basis for R3 East to US$184.4 million (vs the last CPR asset value estimate of US$150 million). Assuming a successful well test programme is conducted, we would look to accelerate plans to commence commercial oil production from the R3 East Area and intend to incorporate the data acquired into our field development plan.

Power Division

In 2025, we repositioned our power sector business model to pursue operating asset opportunities in both the thermal and renewable energy spaces alongside interests in large scale renewable energy development projects.

Proposed Acquisition of Three East African Hydropower Projects

On 19 September 2025, we announced the proposed acquisition of interests in three East African hydropower projects with the signing by our wholly owned subsidiary, Savannah Energy EA Limited, of a Share Purchase Agreement (“SPA”) with Norfund, the Norwegian investment fund for developing countries, to acquire its current 50.1% interest in Klinchenberg for a total consideration of up to US$65.4 million (the “Klinchenberg Transaction”). Klinchenberg has interests in a portfolio of hydropower assets, as set out below:3

an indirect 13.6% interest in the operating 255 MW Bujagali run-of-river hydropower plant (“Bujagali”) in Uganda;

an indirect 12.3% interest in the 361 MW Mpatamanga hydropower development project (“Mpatamanga”) in Malawi; and

an indirect 9.8% interest in the 206 MW Ruzizi III hydropower development project (“Ruzizi III”) spanning Burundi, the DRC and Rwanda.

The Klinchenberg Transaction is targeted to complete in H1 2026.

Greenfield Projects in Development

We continue to progress our existing portfolio of wind, solar and hydroelectric projects, with our principal focus being on the up to 250 MW Parc Eolien de la Tarka project in Niger and the up to 95 MW Bini a Warak hybrid hydroelectric and solar project in Cameroon.

Our Parc Eolien de la Tarka project made significant progress in 2025, with the Minister of Energy confirming that the project is on the Government’s list of priority projects and, as such, is included in the Niger Energy Compact document adopted in Dar es Salaam during the Mission 300 Africa Energy Summit held in January 2025. We are continuing to progress the Environmental and Social Impact Assessment which we expect to complete and submit to the relevant authorities in early 2026. Having officially obtained favourable opinions for the project from both the regulator and the strategic agency in charge of PPPs, we continue to seek to negotiate outline terms in relation to the project’s proposed power purchase agreement and continue to work on the project in close collaboration with the International Finance Corporation (World Bank) and the US International Development Finance Corporation.

In Cameroon, negotiations with the government are at an advanced stage regarding a Joint Development Agreement for the up to 95 MW Bini a Warak hybrid hydroelectric and solar project. This is expected to replace the Memorandum of Agreement signed in April 2023 and secure the terms under which Savannah will collaborate with the Government of Cameroon to develop the project further. We also plan to introduce a development partner to the project, alongside Savannah, during the next development phase.

Future M&A Activity

The Company continues to view mergers and acquisitions activity as a core driver of potential future value creation and is actively pursuing opportunities across both the hydrocarbon and renewable energy sectors.

Savannah is in an exclusivity period in respect of the proposed acquisition of majority interests in a portfolio of renewable projects located in Sub-Saharan Africa, with an aggregate gross capacity in excess of 100 MW and a strong payment history. The proposed acquisition would also include a portfolio of renewable development projects in the same country with a targeted gross capacity of approximately 40 MW. The transaction, which remains subject to the execution of long-form documentation and other customary conditions, is envisaged to involve a potential gross consideration in the US$70 million to US$90 million range and would be expected to be funded through a combination of debt and cash resources.

This proposed acquisition represents the most advanced transaction currently being progressed by Savannah. However, shareholders are advised that there can be no certainty that the transaction will proceed on the above summarised terms or be completed at all. The Company maintains an active business development pipeline comprising a number of potential transactions at various stages of evaluation, although no other opportunities have, at this stage, reached such a level to necessitate disclosure under applicable regulations. The Business development pipeline is sufficiently large that we are however confident of announcing further transaction(s) over the course of the next 24 months in the African oil and gas and power space.

Financial Update (unaudited)

FY 2025 Performance Highlights

FY 2025 cash collections increased by over 12% on the prior year to US$278.0 million (FY 2024: US$248.5 million) and this trend has continued into 2026 with cash collections during January 2026 of over US$64.4 million (January 2025: US$20.4 million).

As at 31 December 2025, cash balances were US$39.5 million (31 December 2024: US$32.6 million) and net debt stood at US$655.9 million (31 December 2024: US$636.9 million). This included debt associated with the SIPEC Acquisition and, for comparison purposes, if this were excluded, net debt would have reduced to US$613.1 million. It should be noted that only 6% of outstanding debt as at 31 December 2025 was recourse to the Company, with the balance sitting within subsidiary companies on a non-recourse basis.

The Trade Receivables balance as at 31 December 2025 was US$507.2 million, a 6% improvement on year-end 2024 (31 December 2024: US$538.9 million). This relates primarily to amounts due under various gas sales agreements in Nigeria. Delivering an increase in our rate of cash collections in Nigeria remains a key focus area for the business in 2026.

Debt Facilities

The Transitional Facility was increased in October 2025 to up to approximately NGN772 billion enabling the remaining outstanding Accugas US$ debt balance to be converted into Naira. As at 31 December 2025, there was a remaining principal balance under the US$ Facility of approximately US$2 million, which was repaid in early 2026.

Arbitration Update

Our wholly owned subsidiary, SCI, commenced arbitral proceedings in 2023 against the Government of the Republic of Chad in response to the March 2023 nationalisation of SCI’s rights in the Doba fields in Chad, and other breaches of SCI’s rights. Another wholly owned subsidiary, SMIL, commenced arbitral proceedings in 2023 in relation to the nationalisation of its investment in TOTCo, the Chadian company which owns and operates the section of the Chad-Cameroon pipeline located in Chad. SMIL has also commenced arbitral and other legal proceedings for breaches of SMIL’s rights in relation to COTCo, the Cameroon company which owns and operates the section of the Chad-Cameroon pipeline located in Cameroon. We currently expect these arbitral proceedings to be concluded in the first half of 2026.

SCI and SMIL are claiming in excess of US$775 million (plus interest which is currently estimated at in excess of US$215 million and costs) for the nationalisation of their rights and assets in Chad.4 SMIL has a claim valued at approximately US$330 million (plus interest which is currently estimated at in excess of US$67 million plus costs) for breaches of its rights in relation to COTCo.5 Whilst the Government of the Republic of Chad has acknowledged SCI’s and SMIL’s right to compensation, no compensation has been paid by the Government of the Republic of Chad to date. Savannah remains ready and willing to discuss with the Government of the Republic of Chad an amicable solution to the disputes. However, in the absence of such discussions, SCI and SMIL intend to vigorously pursue their rights in the arbitrations.

SCI is involved in further arbitral proceedings in which designates of Société des Hydrocarbures du Tchad allege breaches by SCI of the Doba fields joint operating agreement.6 SCI is defending the claims vigorously. We currently expect these arbitral proceedings to be concluded in H2 2026.

Substantial Shareholder

The Company has been advised that its largest shareholder, NIPCO Plc (“NIPCO”), has yesterday purchased 59 million existing ordinary shares in the Company in the market. The Company announced on 30 December 2025 that NIPCO had acquired 148,314,064 existing ordinary shares pursuant to certain secondary market transactions, thereby increasing NIPCO’s shareholding to approximately 26.5% of the Company’s then issued share capital. As at today’s date, whilst the majority of NIPCO’s secondary market transactions have settled, certain of them, comprising approximately 48.15 million existing ordinary shares in aggregate, have yet to settle (the “Unsettled Purchases”).  After taking account of yesterday’s purchase, NIPCO is interested in 631,129,202 ordinary shares, and NIPCO’s majority shareholder, Purebond Limited, is interested in 1,700,000 ordinary shares, in aggregate representing 29.84% of the Company’s current issued share capital (including the shares in the Unsettled Purchases, which are anticipated to be delivered to NIPCO before the end of Q1 2026).

Capital Allocation

As stated in the Company’s update on 3 March 2025, Savannah’s capital allocation policy remains unchanged. The Company intends to allocate any excess capital to its highest risk-adjusted return investment opportunities, assessed against the potential to return capital to shareholders. In this context, the Company has authority, granted by shareholders at the general meeting held on 28 November 2025, to purchase up to 318,098,135 ordinary shares and may undertake share buybacks opportunistically, subject to the Company being in an open period and not being in possession of inside information, and having regard to corporate liquidity and prevailing market conditions.

AIM Quotation Review Update

As announced on 22 October 2025, the Board initiated a review of the appropriateness of Savannah Energy PLC’s current AIM quotation and potential alternative options available to the Company (the “Review”).

The Company elected to defer formal consultation with shareholders to allow consideration of the potential implications (if any) of the Shaping the Future of AIM initiative. In this regard, AIM published its Feedback Statement: Shaping the Future of AIM on 21 November 2025, setting out preliminary regulatory views on proposed reforms, including certain changes that may be implemented in the near term. Of particular relevance to Savannah, was the proposed amendment to the treatment of reverse takeovers, which the Company welcomes, given its previously stated view that such transactions can represent attractive opportunities for value-accretive growth but have historically been discouraged by the risk of prolonged suspension periods, particularly in jurisdictions where regulatory approvals are protracted.

The Review remains ongoing and is currently expected to progress through the first half of 2026, with timing influenced by the Board’s desire to fully assess the proposed AIM rule changes. No decisions have been taken by the Board in relation to the outcome of the Review, which remains at an evaluative stage and is expected to be subject to consultation with shareholders prior to any conclusions being considered.

Reabold Resources

Reabold today noted the announcement made by Beacon Energy PLC today in relation to the Proposed Transaction pursuant to the announcement of 7 October 2025.

The full Beacon announcement can be viewed here:

https://www.londonstockexchange.com/news-article/BCE/proposed-wrap-retail-offer/17447359

Engage with the Reabold management team directly by asking questions, watching video
summaries and seeing what other shareholders have to say. Navigate to our Interactive Investor
hub here: https://reabold.com/s/2b4e66

Nothing to add from Reabold point of view, the announcement of 7th October says it all and once this Beacon financing has been completed and final approval given the new structure will commence. 

Beacon Energy

Beacon has announced the launch of a retail offer via the Winterflood Retail Access Platform to raise proceeds of up to £250,000 through the issue of new ordinary shares of nil par value each in the capital of the Company. The WRAP Retail Offer will form part of the proposed fundraise associated with the Proposed Transaction, including the significant strategic investment in LNEnergy Limited, announced on 7 October 2025 to raise gross proceeds of at least, in aggregate, approximately £3.75m. 

Under the WRAP Retail Offer, for which further detail is provided below, WRAP Retail Offer Shares will be made available at the same price as the Ordinary Shares issued pursuant to the wider Proposed Fundraise, being a price of 3.9 pence per Ordinary Share.

Highlights of the Acquisition:

●        Material European gas asset: The Proposed Acquisition provides Beacon with an indirect interest in the Colle Santo Asset, a material, substantially de-risked development-ready onshore gas field (subject to final regulatory consent). The Colle Santo gas field, located in the Abruzzo region of central Italy, is one of the largest onshore proven undeveloped gas accumulations in mainland Western Europe, with gross Proved plus Probable (2P) reserves of 73.3 Bscf as independently estimated by RPS (October 2025).

●        Clear and well-advanced development pathway: The Proposed Acquisition offers exposure to a low-risk, high-margin gas development project in a stable European jurisdiction with near-term production potential. The project received a number of key regulatory approvals in recent months including full EIA approval in January 2026. The final outstanding significant regulatory approval is the Production Concession award. The project benefits from significant sunk capital, including two already drilled and completed wells, with no additional drilling required to reach first gas. A near-term active work programme designed to achieve FID in mid-2026 and first gas in late 2027.

●        Attractive economics: The Board considers the Colle Santo Asset to be commercially and economically attractive. On a 100 per cent. working interest basis, RPS calculated a post-tax NPV(10) for the Proved plus Probable (2P) reserves of €61.7 million and on a 43.2 per cent. economic interest basis (which assumes the Second Acquisition has occurred), a post-tax NPV(10) of €26.6 million. The Colle Santo development is expected to deliver substantial and sustained cash flows. RPS estimates post-tax pre-financing free cash flow of approximately €10 million per annum by 2028.

●        Experienced development team and operating partners: LNEnergy and its major contractor, Italfluid, bring a proven track record of development and production operations coupled with a strong HSE record and a firm commitment to environmentally responsible hydrocarbon production

●        Financing plan well advanced: A highly credible financing plan is being developed. A non-binding funding agreement is in place with Italfluid, the main contractor for the Colle Santo Asset. LNEnergy signed a non-binding MOU for offtake and potential pre-payment funding with a global commodity trader in 2024 and discussions continue to convert that MOU to a binding agreement. In addition, LNEnergy is in discussions with a number of potential third-party funders.

●        Strategic regional entry: The Proposed Acquisition marks Beacon Energy’s entry into a region with significant potential for growth, where the Company believes a substantial business can be built

●        Significant Board experience: Beacon’s Board and management bring significant European upstream experience, with a proven record of identifying and monetising underdeveloped onshore assets. The Directors believe the Colle Santo Asset provides a clear and deliverable route to near-term production and material value creation for shareholders.

●        Compelling entry point into European gas: The Proposed Acquisition delivers a compelling entry point into the European gas market through a well-defined, de-risked project with clear commercial metrics, low development capital intensity, and an attractive economic return under conservative commodity price assumptions.

Nothing unexpected here from Beacon today who have announced a WRAP retail offer to raise £250/- at 3.9p to go with the £3.75m institutional raise already flagged. This will mean that the company can go ahead with Colle Santo this year and there are plenty of catalysts coming up which will enable significant progress.

The EIA approval last month was of key importance, it has been a real game-changer as it has provoked a lot of industry interest with a number of interested parties coming forward. This has meant that discussions re offtake, funding and even participation in the project is being mooted, although its early days. 

This is an important milestone for Beacon and once the funding is completed they can look forward to an exciting year in Italy. Readers know that I have been very positive about the situation in Italy ever since they realised that a positive attitude towards domestic gas will be highly rewarding. 

Afentra

Afentra has provided an operational and financial trading update for year ended 31 December 2025.

Key Highlights

• 2025 NET Average Production (Working Interest): 6,324 bopd
• Crude Oil Sales & Revenue:
  • o  1.63 mmbbls sold at $70.2/bbl average price, generating $114.4 million revenue
  • o  517,643 bbls sold at $65.4/bbl average price on 21 January 2026 (post period), generating $33.8 million revenue
• Fourfold Contingent Resources Increase: 2C contingent resources increased to 87.3mmboe
• Block 3/24 Award: Afentra's first Operatorship with 40% working interest
• Etu Energias Acquisition: Approval process progressing with completion expected in Q1 2026
• Kwanza Onshore Expansion: KON4 licence contract initialled; award expected in Q1 2026
• Borrowings: drawn RBL of $31.5 million, Net debt of $21.8 million at 31 December 2025

Operational & Corporate Overview

Asset performance

• Gross average production for the period ended 31 December 2025 was 21,268 bopd (Net: Block 3/05 6,185 bopd; Block 3/05A 139 bopd)1. Base production in 2026 is expected to be sustained at similar levels, with the planned infill drilling and heavy workover programme expected to significantly increase production towards the latter part of the year.
• Operating costs continued to track $23/bbl during the period, and the Company anticipates similar costs in 2026.
• Capital investment during the period was ~$220 million gross (Net: $66 million). This included capex associated with asset integrity, revamping, light well interventions (LWIs) and preparation for the 2026 drilling campaign. 2026 capital investment in B3/05 and B/305A covering continued work on asset integrity, revamping and LWIs is anticipated to be ~$163 million gross (Net: $50 million).
• Asset uptime remained stable throughout the period, supported by continued progress across the asset revamping and integrity workstreams.

Revamping & Integrity

• Multi-year redevelopment plan remains on track underpinning increased reserves recovery and production growth. Key workstreams progressed during the period, which will continue through 2026, include:
  • Water injection ramp-up continued, averaging 37,798 bwpd for the period, with injection rates of ~ 50,000 bwpd consistently achieved during Q4 2025. During 2026, the focus on increasing sustained water injection rates will continue, targeting rates of ~100,000 bwpd.
  • Infrastructure upgrades continue across power systems, cranes, subsea lines and risers to enhance safety, reliability, uptime and protect future value. The FSO recertification work programme was completed in December 2025, with formal recertification expected in early 2026
  • 28 LWIs were delivered during the period, sustaining production performance. The LWI programme will continue through 2026, targeting ~40 interventions. Recent LWIs have included reperforation of zones not previously accessed, this has the potential to deliver new incremental production.

2026/27 infill drilling and workover programme

• Preparations continue on the potential 2026-2027 infill drilling and a hydraulic workover programme across the producing Block 3/05 fields, which will include up to two wells and three workovers. These activities could together provide:
  • Production uplift of up to 12,500 bopd gross (Net: 3,750 bopd)
  • Reserves and resources upside exposure of up to 120 mmbo gross (Net: ~36 mmbo)
• Capex associated with the potential infill drilling and heavy workover programme is expected to be ~ $115-130 million gross (Net: $34-39 million).

Reserves and Resources (post period)

• Sproule ERCE completed the Company's annual independent reserves report with gross 2P reserves of 106.3 mmbo (net 2P WI reserves of ~31.9 mmbo). The asset  produced approximately 7.5 mmbo in the period. The 3-year average reserves replacement to end 2025 has been 94%. The planned 2026-2027 infill drilling and heavy workover programme is anticipated to deliver further significant reserves replacement as well as production growth.
• Independent audit and internal assessment significantly increased 2C working interest contingent resources across Blocks 3/05, 3/05A and 3/24, with total 2C WI contingent resources of ~87.3 mmboe, representing an increase of over 400% versus the previously disclosed 2C resources WI of 20.9 mmboe.

Portfolio expansion and licences

• Block 3/24 offshore licence award completed following ministerial approval with Afentra as Operator at 40% working interest. Planning is progressing to fast-track an initial infrastructure-led development, leveraging nearby existing facilities, with development studies targeting a Final Investment Decision late 2026/early 2027.
• Sale & Purchase Agreement signed with Etu Energias in June for an additional 5% net interest in Block 3/05 and 6.67% net interest in Block 3/05A. Approval process is ongoing and completion is expected in Q1 2026.
• Onshore Kwanza basin:
  • KON15 licence formally awarded in February 2025
  • KON4 Risk Service Contract initialed in June, confirming Afentra as Operator at 37.5% working interest, completion of the award is now expected in Q1 2026.
  • eFTG data acquisition programme underway across KON4, KON15 and KON19, with completion targeted for Q1 2026. This data will advance subsurface evaluation and define future exploration and development targets.
• Odewayne Licence Transfer completed, transferred Afentra's 34% non-operated participating interest in the Odewayne Block, Somaliland, including all future rights and liabilities, to Petrosoma Limited. Afentra also received $1.97 million in settlement of carry obligations from Genel.

Financial Overview

Key Financials as at and for the period ended 31 December 2025

• Revenue of $114.4 million2
• Cash resources of $10.2 million (including $5.0 million of restricted funds)
• Borrowings:
  • Reserve Based Lend Facility: $31.5 million
  • Working Capital Facility: zero
• Net debt of $21.8 million

Crude Oil Sales & Hedging

• Four liftings during the period totalled 1.63 million bbls; average price of $70.2/bbl
• Net entitlement stock in-tank 363,908 bbl at 31 December 2025
• Lifting of 517,643 bbls on 21 January 2026; average price of $65.4/bbl, generating revenue of $33.8 million, of which $17.1 million was received in advance in December 2025
• Further 3-4 liftings anticipated in 2026
• Currently ~25% of 2026 sales hedged using a combination of put options at $60/bbl and call options ranging from $78/bbl to $87/bbl; the hedging programme was strengthened during the recent price uplift and will continue to be under active review to seek further opportunities to increase the programme.

Financial outlook

• The Company is in discussions to extend its existing RBL facility with Trafigura and MCB to provide near-term funding to support investment programmes across Afentra's asset base.
• As the upcoming infill drilling/heavy workover programme progresses, the Company is actively assessing financing options to support this programme and its other growth projects. The timing and structure of any funding will be dependent on oil price conditions and the broader market environment.

Share purchase programme

• The Employee Benefit Trust commenced a share purchase programme in July 2025 to acquire approximately 6.5 million shares to cover 2026 FSP and LTIP awards thereby avoiding dilution. At 31 December 2025, the Company had purchased 4,520,707 shares at a volume-weighted average price of 47.9 pence per share.

2026 Strategic Outlook

In 2026, the Company will continue its multi-year revamping and integrity programme across its Block 3/05 infrastructure. In addition, it anticipates the execution of the first infill drilling and heavy workover activities in the asset in over a decade, which are expected to lay the foundations for a material step change in production beyond 2026. Alongside this, Afentra is looking to complete the Etu transaction, increasing its equity exposure across its core offshore assets, while progressing the operated Block 3/24 development which will also provide a further increase in both production and reserves. Onshore, the focus will be on completing the KON4 award process and integrating the results of the ongoing eFTG data acquisition programme to further refine subsurface understanding and inform future development and exploration opportunities.

Paul McDade, Chief Executive Officer, Afentra plc commented:
"2025 was a year of disciplined operational execution for Afentra, with stable production performance supported by continued progress across the asset revamping and integrity programme. We also delivered a significant increase in contingent resources through the latest independent CPR, reinforcing the scale of the opportunity across our portfolio and the value of our infrastructure-led development strategy. Alongside this, we made meaningful progress across our onshore Kwanza portfolio in 2025, including the initialling of the KON4 contract and the advancement of subsurface studies to support long-term growth optionality.

Looking ahead, 2026 is expected to be a pivotal year as we prepare for infill drilling and heavy workover activities, progress the operated Block 3/24 development and continue to strengthen the balance sheet, positioning the Company to deliver a material step change in production and reserves beyond 2026."

After a very good year in 2025 with acreage acquisitions onshore and offshore which significantly increased reserves, this means that the upcoming programme should deliver increased production and thus production, reserves replacement over three years is a highly laudable 94%.

Afentra has recently rallied, up some 22% in the last month and as a great performer over the long term will definitely remain in the Bucket List for its fantastic acreage, a management which is amongst the best in the sector and with a great record in M&A. 

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