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SEPLAT provides interim management results for Q1 2017

Seplat Petroleum Development Company Plc (“Seplat” or the “Company”), a leading Nigerian independent oil and gas company listed on both the Nigerian Stock Exchange and London Stock Exchange, today announces its first quarter results. Information contained within this release is un-audited and is subject to further review.

Key points

Alternative export route

–  Upgrades and repairs recently completed on one of two jetties at the Warri refinery and barging operations are being re-established with loading of one 100,000 bbl cargo from the upgraded jetty completed on 27 April

–  Work on the second jetty is progressing well and on-track to be operational during Q2. The upgraded jetties will enable sustained exports of 30,000 bopd (gross)

–  Completion of the 160,000 bopd Amukpe to Escravos pipeline prioritised by the Nigerian government and anticipated in H2 2017

–  The Forcados Terminal remains under force majeure at the date of this announcement

Strong performance of the gas business

–  Net working interest gas production 95 MMscfd and gas revenues of US$25 million (53% of total Q1 revenues)

–  Expansion of gross processing capacity to 525 MMscfd provides headroom to increase contracted gas sales (actively engaged with counterparties) and handle 3rd party volumes

Financials reflect lower oil exports via the Warri refinery route whilst jetty upgrades and repairs were undertaken

–  Revenue US$47.3 million and gross profit US$19.1 million; 22% year-on-year reduction in G&A helped narrow operating loss to US$1.3 million; loss for the period after net finance costs US$18.3 million and loss after tax US$19.1 million

–  Cash generated from operations US$51.6 million versus capex incurred of US$4.9 million

–  Average oil price realisation US$48.34/bbl (2016 :US$35.4/bbl); average gas price US$3.05/Mscf (2016: US$2.98/Mscf)

Continued to reduce debt, improve balance sheet and preserve liquidity buffer

–  US$33 million debt principal repayments made in Q1; gross debt at 31 March stood at US$643 million (down from US$676 million at 31 December 2016) and net debt US$487 million (down from US$516 million at 31 December 2016)

–  Cash at bank at 31 March US$156 million

–  NPDC headline receivable at 31 March US$230 million; net receivable US$220 million after adjusting for FX, interest and impairment

–  Discussions underway with lenders on the three year corporate facility with a view to extending the facility until end December 2018

Working interest production for the first three months of 2017(1)

Gross

Working Interest

Liquids

Gas

Oil equivalent

Liquids

Gas

Oil equivalent

Seplat %

Bopd

MMscfd

Boepd

bopd

MMscfd

boepd

OMLs 4, 38 & 41

45.0%

7,721

211

42,854

3,474

95

19,284

OPL 283

40.0%

1,805

1,805

722

722

OML 53

40.0%

2,290

2,290

916

916

Total

11,816

211

46,949

5,112

95

20,922

(1)      Liquid production volumes as measured at the LACT unit for OMLs 4, 38 and 41 and OPL 283 flow station.  Volumes stated are subject to reconciliation and will differ from sales volumes within the period. Working interest sales volumes in the period were 1.9 MMboe, comprising 0.5 MMbbls oil and condensate and 1.4 MMboe gas.

      Note the commercial position does not follow accounting treatment as receivables are determined in the functional currency (i.e. US Dollar) which forms part of the “value for money” process currently underway with NPDC

Commenting on the results Austin Avuru, Seplat’s Chief Executive Officer, said:

“The first quarter of 2017 is a transitionary period for Seplat in which our oil sales have been constrained whilst we electively undertook the necessary upgrade and repair work on two jetties at the Warri refinery to give us the future benefit of doubling barging volumes and stabilising exports via that route at a gross rate of 30,000 bopd.  Alongside this we are collaborating with and supporting government on completion of the Amukpe to Escravos pipeline that will offer a third export route to Seplat and help to significantly de-risk the distribution of our oil production to market. These proactive management actions, combined with the consistently strong performance of our gas business and continued strict financial discipline to preserve a liquidity buffer, should lead to a much improved performance outlook over the remainder of 2017 and beyond, with a much greater level of in-built resilience to such external shocks”.

Source: Press Release

The post SEPLAT provides interim management results for Q1 2017 appeared first on Energy News | Oil and Gas News - Energy Mix Report.



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SEPLAT provides interim management results for Q1 2017

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