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PERFORMANCE
Savannah Energy issues

2021 trading update

Savannah Energy, the British independent
energy company focused around the delivery
of Projects that Matter in Africa, is pleased to
announce a trading update for the full year 2021.
Andrew Knott, CEO of Savannah Energy,
said: “I am extremely pleased to be able to
announce a strong set of initial results for 2021.
We have exceeded our guidance set out at the
beginning of 2021, with our Nigerian assets con-
tinuing to perform well throughout the period.
In addition, our financial performance in the
year was very strong and operationally we were
able to announce new gas sales contracts in Nige-
ria, as well as commencing first gas sales under
the FIPL Afam contract. Since the announce- for infrastructure assets plus $2.6 per boe), Production Licence 2017/18L, Prospecting
ment of our acquisition of the Nigerian assets we an overall reduction due to the 27% reserves’ Licences 001 & 003/2004 and 35 & 37/2000.
have clearly demonstrated significant underly- increase in Nigeria as announced in the publica- Ownership: Tlou Energy 100%. The Lesedi
ing asset value creation: For example, 2017-2021 tion of the updated Nigeria Competent Persons licenses covers an area of approximately 3,800
Total Revenues have increased by 65% and Cash Report on November 23, 2021. square km and consists of four Prospecting
Collections by 92%. FY 2021 Capital Expenditure for the year Licences (PL) and a Production Licence. The
“Looking forward, we will continue to seek to is significantly below the guidance of up to Lesedi Power project is located in the Company’s
execute our ‘Projects that Matter’ strategy as we $65.0mn, following the successful drilling of Production Licence area (about 800 square km).
continue to review opportunities in the renew- the Uquo 11 gas development well and ongoing The Lesedi project has all approvals in place to
able energy space and further upstream and compression works, which are now scheduled to allow development to commence. The first phase
midstream asset acquisitions, deliver further complete in 2022. will be a 10-MW power project with electricity to
operational and financial progress in Nigeria and FY 2021 Nigeria Operational Highlights: FY be sold to Botswana Power Corporation. Once in
Niger and close out our planned acquisitions in 2021 average gross daily production was 22,300 full production, 10 MW of generation could pro-
Chad and Cameroon. We look forward to updat- boepd, a 14% increase from the average gross vide annual revenue of approximately $10mn.
ing our stakeholders as to the progress we make.” daily production of 19,500 boepd in FY 2020. Of During the quarter, the Company signed a
FY 2021 Unaudited Financial Highlights: FY the FY 2021 total average gross daily production 10-MW Power Purchase Agreement (PPA) with
2021 Total Revenues1 of $230.5mn (up 7% on of 22,300 boepd, 88.1% was gas, including a 15% Botswana Power Corporation (BPC). Under the
FY 2020 on a like-for-like basis after adjusting increase in production from the Uquo gas field terms of the PPA, BPC will purchase up to 10
2020 Total Revenues of $235.9mn for an advance compared to 2020, from 103mn cubic feet per MW of power generated at Tlou’s Lesedi power
payment of $20mn from Lafarge Africa that was day (17,100 boepd) to 118 mcf per day (19,700 project.
received on entering a revised Gas Sales Agree- boepd). The Company also signed a Convertible Note
ment). This is ahead of the Company’s previously Savannah Energy, January 24 2022 Agreement with Botswana Public Officers Pen-
issued FY 2021 guidance of “Total Revenues of sion Fund (BPOPF).
greater than $205.0m.” Tlou Energy reports on The principal terms of the Convertible Note
Group cash balance of $154.3mn (up 46% Agreement are as follows: Amount: BWP50mn;
versus FY 2020 year-end cash balance of operations in Q4-2021 Maturity: five years; Interest rate: 7.75% per
$106.0mn) and net debt of $370.0mn (down 9% annum; Conversion: Conversion to shares at a
versus FY 2020 year-end net debt of $408.7mn) Tlou Energy is developing power solutions in 10% discount to the 90-day VWAP. The funds
as at December 31, 2021. Sub-Saharan Africa through gas-fired power, are planned to be used to finance construction of
Total cash collections from the Compa- solar power and hydrogen projects. The com- transmission line infrastructure to connect the
ny’s Nigerian assets rose 11% year-on-year pany is listed on the ASX (Australia), AIM (UK) Lesedi Project to the power grid, installation of
to $208.2mn (FY2020 cash collections of and the BSE (Botswana). The Lesedi Power Pro- generation assets, and ancillary costs to facilitate
$187.4mn). ject is the Company’s most advanced project. power generation and sale of electricity.
The Company is updating its guidance on the Tlou plans to develop gas and solar power gen- Mamba Project Area, Botswana. Licences:
remaining items to report for FY 2021: Operat- eration assets at Lesedi with electricity to be sold Prospecting Licences 237-241/2014. Ownership:
ing expenses plus administrative expenses are at into the power grid. Tlou Energy 100%. The Mamba project consists
or below the lower end of the guidance range of The Company has three project areas in Bot- of five PLs covering an area of approximately
$55.0-65.0mn, driven by the ongoing control of swana: Lesedi Project – Gas and Solar Power, 4,500 square km.
the cost base. Hydrogen production; Mamba Project – Explo- The Mamba area is situated adjacent to
Group Depreciation, Depletion and Amorti- ration and Evaluation; Boomslang Project – Lesedi. In the event of a gas field development
sation of $20mn, fixed for infrastructure assets Exploration and Evaluation. by Tlou, the Mamba area provides the Company
plus $2.3 per boe (amended from $19mn fixed Lesedi Project Area, Botswana. Licences: with flexibility and optionality.

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