Seplat Energy’s Gas Revenue Grows To $63.7m Year-On-Year
Leading Nigerian independent energy company, Seplat Energy Plc, listed on both
the Nigerian Exchange Limited and the London Stock Exchange, has within a year experienced a 10.2 per
cent gas revenue, reaching $63.7 million in 6M 2023 (compared to $57.8 million in 6M 2022).
This growth is attributed to increased realised gas prices and a rise in sales volume. The average realised
gas price rose by 4.4% to $2.87/Mscf, while gas production saw a moderate 1.4 per cent increase to 21.6
Bscf during the same period (compared to 21.3 Bscf in 6M 2022).
The average realised gas price improvement reflects the impact of upward gas price revisions
implemented in the period, Seplat Energy said in a recent breakdown on performance for its business
operations.
In its outlook for the remaining part of the year, Seplat Energy said: “Our group production performance
has improved in 2023, thanks to greater uptime on OML40 and reduced losses on our Western Asset.
We maintain our 2023 guidance range at 45,000-55,000 boepd, which we are confident of meeting,
given year to date production and the expected benefit of new well stock as it becomes available in the
latter part of the year.
“We stress that our guidance does not include any expected contribution from Mobil Producing Nigeria
Unlimited (MPNU) or ANOH projects. Our capital expenditure guidance for 2023 is adjusted to a range of
$160-190 million. Our commitment to meeting the planned drilling targets remains steadfast, and we
have a drilling plan in place to meet these targets in 2H 2023.”
During the period, Seplat Energy’s average working interest gas volumes reached 119.4 million standard
cubic feet per day (MMscfd), showing improvement compared to 117.7 MMscfd in the first half of 2022.
This increase can be attributed to enhanced well performance and the availability of condensate
evacuation routes.
The company added: “We have successfully entered into a new Gas Sales Agreement (GSA) with a bulk
gas supplier for a volume of 50 MMscfd. Once all the necessary Conditions Precedent are met by the
new customer, we will commence gas supply under this agreement. The execution of additional GSAs is
part of our strategy to optimise the capacity of the Oben gas plant.
“We are also actively working on securing third-party gas to feed both the Oben and Sapele gas plants.
The execution of the plan for separating the midstream business from the upstream operations has
progressed according to schedule. We have completed the internal transfer of midstream assets to
Seplat Midstream Company (SMC). Additionally, we have issued notices to our joint venture partners
and relevant regulators to inform them of these developments. We will continue to keep the market
updated on the progress of this separation process.”
During the period, five wells in Seplat Energy’sdrilling program were delivered: Opuama-17, Sibiri-2,
Gbetiokun 4 workover, Gbetiokun[1]10, and Assa North-05. In the first quarter of the year, Opuama-17,
was completed and is producing at a gross rate of c. 3,000 bopd.
Sibiri-2 well has been drilled to TD, with the target reservoirs completed; and the companycurrently
awaiting regulatory approval to commence production from the well. GB-10 well has been drilled and
completed ahead of the target date and is expected to add c.1,300 bopd to production upon completion
of flowline installation and well head construction. Lastly, GB-4 W/O will add c. 2,200 bopd to
production.
Seplat Energy Plc Plc is a leading indigenous Nigerian energy company with a strategic focus on Nigeria,
listed on the Premium Board of the Nigerian Exchange Limited ("NGX") (NSE:SEPLAT) and the Main
Market of the London Stock Exchange ("LSE") (LSE:SEPL). Seplat is pursuing a Nigeria focused growth
strategy and is well-positioned to participate in future divestment programmes by the international oil
companies, farm-in opportunities and future licensing rounds. For further information please refer to
the company
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