SEPLAT PETROLEUM STRIKES GOLD WITH GAS

Seplat Petroleum Development company PLC, quoted in both the Nigerian and London Stock Exchange, apparently struck gold with gas in financial year 2015.
According to pre-audited figures release brief sent to the both stock markets, Seplats production of gas rose by about 119% in 2015 compared to only 20% increase in its liquid crude production.
In the end combined overall growth in the company's production compared to 2014 came to 41% at 43,372 boepd.
The yield from gas activities in 2015 was driven mainly by the commissioning of the Obeng gas plant expansion around mid 2015 leading to significantly higher gas sales and condensate yield especially as gas price was not linked to dropping crude oil prices.
Now, says Seplat, 2015 revenue is expected to range between $550m and $600m.
In all, Seplat expended $152m as forward looking capital expenditure in 2015 most of it on OMLs 4, 38 and 41 gas development. This was slightly less than $168m expended in 2014 but a remarkable feat in view of the fact that the company simultaneously continued to offset 55% cash call share of the Nigerian Petroleum development company( NPDC) under an agreement signed in July 2015.
Now, still looking ahead, gas production is to be expanded further with 3 new processing modules already ordered to be delivered in the third quarter of this year and installed by the fourth quarter.
Meanwhile, both Seplat and NPDC are putting finishing touches to final approvals for the sale of a portion of the joint venture oil production to retire some of the outstanding NPDC receivables balance and fund joint venture cash calls going forward.
No doubt, unless the directors prefer to be conservative given fund needs on the horizon, shareholders should smile this year especially if all the higher production and sales in 2015 resulted in significantly higher distributable profit.

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