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AfrOil NEWS IN BRIEF AfrOil

PERFORMANCE
Savannah Energy issues

2020 trading update and
guidance for 2021

Savannah Energy, the African-focused Brit-
ish independent energy company sustainably
developing high quality, high potential energy
projects in Nigeria and Niger, has announced a
trading update for the full year 2020 and guid-
ance for the full year 2021.
Andrew Knott, CEO of Savannah Energy,
said: “As this FY 2020 trading update demon-
strates, despite the challenging headwinds, 2020
was a milestone year for Savannah Energy. It was
our first full year of operating the high margin
assets we acquired in Nigeria and I am delighted Production averaged 12,400 boepd in As previously disclosed, the Company
to report that we have significantly exceeded all Q4-2020 and 13,500 boepd for the year ended announced a merged concession agreement with
of the original financial guidance we presented to 2020, meeting updated guidance of 13,300- a 15-year primary term and improved Company
the market this year, as laid out in our corporate 13,800 boepd provided on August 11, 2020. economics in early December 2020. Ratification
Key Performance Indicator statement published Following the Egyptian General Petro- of the concession is anticipated in Q2-2021,
within our FY 2019 Annual Report. In 2020 we leum Company’s approval of the amendment, and the February 1, 2020, effective date for the
grew revenues, reduced our underlying cost extension and merger of the Company’s East- improved concession terms supports increased
base and continued to provide gas contributing ern Desert concession agreements in Decem- investment in parallel with ratification.
to over 10% of Nigeria’s daily national average ber 2020, the Company expects ratification by The Company is in the process of finalis-
power generation, highlighting the resilience of Egypt’s Parliament in Q2-2021. ing an enhanced 2021 work programme and
the business. A 2021 work programme and budget is being budget that reflects this breakthrough, acceler-
“Looking forward to 2021, we are provid- prepared for implementation in parallel with the ating production and cash flow in 2021 through
ing guidance for the year for continued strong ratification process that accelerates exploitation an invigorated well maintenance programme
revenue generation, investments in key drilling of the Eastern Desert merged concession with and development activities on the contingent
and compression projects and an increased level the aim of increasing oil production. resource projects previously disclosed. At this
of maintenance project activity versus 2020. Work has begun to expand the early produc- time, the joint venture operating organisation in
Overall, we have reduced our cost estimate for tion facility at South Ghazalat in order to facil- Egypt is sourcing a drilling rig and the necessary
our indicative 2020-23 capital expenditure pro- itate a planned Q2-2021 recompletion of the equipment in support of this programme.
gramme by around 13%, versus our previous SGZ-6X well to the deeper, more prospective Western Desert – South Ghazalat (100% WI):
indications and are guiding that we expect our lower Bahariya reservoir. Work to expand the production handling capac-
underlying operating costs (which include main- Preparations are underway to stimulate ity at South Ghazalat has begun, in advance of a
tenance expenditures) to track levels consistent and equip, in Q1-2021, the 2-mile (3.2-km) planned Q2-2021 SGZ-6X recompletion to the
with 2020 (in real terms) over the medium term. horizontal South Harmattan well drilled, but deeper, more prospective lower Bahariya reser-
It should also be noted that our 2021 guidance uncompleted, in Q1-2020. Further development voir. The Company announced on November
excludes contributions from any new gas sales activity targeting the exciting South Harmattan 19, 2018 that a 42-foot or 12.8-metre (perfo-
agreements or any contribution from the R3 oil resource is also anticipated in 2021. Collected rated interval in the Lower Bahariya had flowed
East development project in Niger, which would about $32.3mn in receivables in Q4-2020. 2,437 bpd of light oil, 21 bpd of water and 1.4 mcf
be incremental to this. I am excited around the Production Summary (WI before royalties (39,644 cubic metres) per day of natural gas on
potential for our business to grow further over and taxes): Company production met the lower a 40/64-inch choke. Reservoir and surface facil-
the coming years, especially given the opportu- end of production guidance for 2020 of 13,300- ity management practices are expected to con-
nity-rich West African environment in which we 13,800 boepd. This is principally due to delayed strain production from this interval following
operate, and look forward to keeping our stake- Egypt well maintenance, reflecting the weak the expected recompletion.
holders up to date on the progress we make.’ economics of the fiscal terms of the pre-consol- CEO’s Randall C. Neely’s statement: “With
Savannah Energy, January 25 2021 idation concession agreements, and was in line the announcement of the consolidation, amend-
with the Company’s focus on maintaining the ment and extension of our Eastern Desert PSCs
TransGlobe Energy Company’s balance sheet strength in 2020. now behind us and with oil prices firming up
Eastern Desert (100% WI): During the quar-
in the $50-55 per barrel range, we are working
announces update on ter oil prices remained weak, with well repair diligently on high grading opportunities as we
and maintenance activities focused only on finalise a work programme that reflects both the
operations in Egypt those that generated positive cash flow while significant resource potential and the greatly
negotiations to amend, extend and consolidate improved cash flow generating capacity of our
TransGlobe Energy has announced an update on the Company’s Eastern Desert concession agree- assets.”
its operations in Egypt. ments continued. TransGlobe Energy, January 21 2021

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