Seplat buys marginal oilfield, posts 238% profit surge

Seplat Energy Plc, a Nigerian independent energy company listed on the Nigerian Exchange and the London Stock Exchange, has announced the acquisition of a 95 percent interest in Abiala marginal field carved out of Oil Mining Licence 40.

It said the acquisition followed the sale of its stake in Ubima marginal field due to high production costs and export difficulties.

The company, in its unaudited financial statements for the first half of 2022, said it sold its stake in Ubima for $55 million, with an initial payment of $6.4 received in July.

Its profit before tax surged 238 percent to $209.9 million compared to H1 2021 as revenue rose 71 percent to $527 million.

 Seplat announced a dividend of $2.5 cents per share for the period under review.

“Production increased strongly in the second quarter, achieving 52.4 kboepd across our operations, and we expect to maintain higher volumes for the rest of the year now that we plan to export liquids through the more secure Amukpe-Escravos Pipeline,” the Chief Executive Officer, Seplat Energy, Roger Brown, said.

The company said it had drilled five wells this year, adding that it expects to drill four additional wells in the coming quarter to arrest decline and support production growth across the asset base.

It also plans to complete ongoing projects, invest in maintenance capital expenditure to secure the existing assets, and continue investing in gas.

“Having divested our interest in Ubima because of its high production costs and export difficulties, we recently acquired a 95 percent interest in the Abiala marginal field and plan to begin operations there next year using existing infrastructure in OML 40. This is consistent with the strategy for low-cost, low-risk upstream growth we announced last year,” Brown said.

“We remain confident that our transformational acquisition of MPNU will be approved, adding significant reserves and production capacity that will strongly reinforce Seplat Energy’s position as Nigeria’s leading indigenous oil and gas producer,” he added.

Seplat Energy had on February 25, 2022 signed a Sales & Purchase Agreement to acquire Exxon Mobil’s shallow water operations in Nigeria, Mobil Producing Nigeria Unlimited but the Federal Government failed to give the transaction the green light.

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