Seplat Energy Sees Growth in Gas Revenue, Surging to $63.7 Million

In the first half of 2023, Seplat Energy Plc, a local energy firm, witnessed a notable 10.21 percent growth in its gas revenue, reaching $63.7 million. This impressive surge marked a significant increase from the $57.8 million recorded during the same period in 2022. The company attributed this positive development to higher gas prices and an upswing in sales volume, as stated in their Monday press release.

Seplat Energy reported that during the considered period, the average realised gas price experienced a 4.4 percent increase to $2.87/Mscf.

Additionally, gas production saw a moderate 1.4 percent rise to 21.6 Bscf compared to the first half of 2022 when it was 21.3 Bscf. The company attributed the improvement in the average realised gas price to the impact of upward gas price revisions implemented during that period, as highlighted in their recent performance breakdown for business operations.

Seplat Energy expressed optimism about its outlook for the rest of the year, stating that their group production performance has shown improvement in 2023. They credited this progress to increased uptime on OML 40 and reduced losses on their Western Asset. The company reaffirmed their 2023 guidance range of 45,000-55,000 bpd (barrels per day), expressing confidence in meeting this target. They based their confidence on year-to-date production figures and anticipated benefits from new well stock that is expected to become available in the latter part of the year.

Seplat Energy emphasized that their guidance for the year does not include expected contributions from Mobil Producing Nigeria Unlimited or ANOH projects. They adjusted their capital expenditure guidance for 2023 to a range of $160-190 million. The company remains committed to meeting planned drilling targets, with a drilling plan in place for the second half of 2023.

During the reviewed period, Seplat Energy’s average working interest gas volumes reached 119.4 million standard cubic feet per day, showing improvement compared to 117.7 MMscfd in the first half of 2022. This increase was attributed to enhanced well performance and the availability of condensate evacuation routes. Additionally, the company signed a new Gas Sales Agreement with a bulk gas supplier for a volume of 50 MMscfd, pending the fulfillment of necessary conditions.

Seplat Energy is actively working on securing third-party gas to supply both the Oben and Sapele gas plants. The plan to separate the midstream business from upstream operations is progressing on schedule, with the internal transfer of midstream assets completed to Seplat midstream company.

Seplat Energy further stated that they have issued notices to their joint venture partners and relevant regulators to keep them informed about the ongoing developments regarding the separation process. The company assured that they will continue to provide updates to the market on the progress of this separation.

In addition to the positive developments in gas volumes, Seplat Energy successfully delivered five wells in their drilling program during the period. These wells include Opuama-17, Sibiri-2, Gbetiokun 4 workover, Gbetiokun[1]10, and Assa North-05, demonstrating their commitment to their drilling targets and operational advancements.