Seplat Energy Achieves Impressive Gas Revenue Growth: H1 2023 Performance Breakdown

Double-Digit Gas Revenue Surge

In a noteworthy financial performance, Seplat Energy Plc, a homegrown energy company, marked a substantial 10.21% increase in gas revenue, reaching $63.7 million during the first half of 2023. This impressive growth compared to the $57.8 million recorded in the same period last year underscores the company’s strong position in the energy market.

Price Rise and Volume Boost Drive Revenue

Seplat’s augmented gas revenue can be attributed to a combination of factors. An uptick in realized gas prices, with a 4.4% surge to $2.87 per thousand standard cubic feet (Mscf), played a role. Moreover, gas sales volume exhibited a moderate 1.4% upswing, totaling 21.6 billion standard cubic feet (Bscf), compared to 21.3 Bscf in H1 2022. This intricate balance between pricing and volume contributed to the robust revenue expansion.

Strategic Outlook and Operational Progress

The company’s outlook for the latter part of 2023 signals a positive trajectory. Seplat Energy anticipates maintaining its production guidance range between 45,000 and 55,000 barrels per day (bpd). Notably, this projection excludes potential contributions from the Mobil Producing Nigeria Unlimited or ANOH projects. The organization’s strategic commitment is evident in its planned capital expenditure range of $160-190 million, with a dedicated focus on drilling targets to be achieved in the second half of the year.

In the midst of these developments, Seplat Energy succeeded in enhancing its average working interest gas volumes to 119.4 million standard cubic feet per day, demonstrating growth from the 117.7 MMscfd recorded in H1 2022. This accomplishment was driven by improved well performance and the establishment of efficient condensate evacuation routes.

Furthermore, Seplat Energy revealed its engagement in securing a new Gas Sales Agreement with a bulk gas supplier, set at a volume of 50 MMscfd. Once prerequisites are met, this agreement will fuel further revenue generation. Additionally, the company is actively pursuing third-party gas sources to support its Oben and Sapele gas plants.

Seplat Energy’s strategic direction is also evident in its pursuit of operational separation between its midstream and upstream activities. This meticulous process involves transferring midstream assets to the Seplat midstream company, a step that aligns with the company’s commitment to transparency and focused growth.

Amid these advancements, Seplat Energy successfully completed the delivery of five wells as part of its drilling program, including Opuama-17, Sibiri-2, Gbetiokun 4 workover, Gbetiokun 10, and Assa North-05. These achievements collectively underscore Seplat Energy’s position as a pioneering force in the energy sector, leveraging both operational excellence and strategic foresight for sustained growth.