Seplat Energy Plc, a prominent Nigerian independent energy firm dual-listed on the Nigerian Exchange Limited and the London Stock Exchange, has witnessed a substantial growth of 10.2% in its gas revenue within a year, recording a significant achievement of $63.7 million in the first half of 2023 compared to $57.8 million in the corresponding period of 2022.....KINDLY READ THE FULL STORY HEREā¶
This commendable progress is attributed to heightened realized gas prices coupled with an escalation in sales volume.
The average realized gas price exhibited a rise of 4.4%, reaching $2.87/Mscf, while gas production demonstrated a moderate 1.4% upturn to 21.6 Bscf during the same timeframe, as opposed to 21.3 Bscf in the initial six months of 2022….CONTINUE READING
Seplat Energy attributes the enhancement in average realized gas prices to the effects of upward gas price revisions that were implemented during this period, as detailed in their recent performance breakdown.
Looking ahead to the remainder of the year, Seplat Energy expressed its perspective, stating, “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), showcasing improvement compared to 117.7 MMscfd in the first half of 2022. This elevation is attributed to enhanced well performance and the availability of condensate evacuation routes.
Seplat Energy also informed, “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 firm underscored its endeavors in acquiring third-party gas to support both the Oben and Sapele gas plants. Additionally, they detailed their progress in separating midstream operations from upstream activities, including the internal transfer of midstream assets to Seplat Midstream Company (SMC) and other strategic developments.
Furthermore, Seplat Energy highlighted its recent achievements in its drilling program and the production rates of various wells, exemplifying its commitment to driving growth and stability.
