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Recap of Seplat’s 2020 Results and 2021 Outlook

In its audited results for the year ended December 31, 2020, Seplat Petroleum Development Company Plc says it realized working-interest production within guidance at 51,183 boepd, despite demand fall and OPEC+ quotas and expects a similar production range for 2021.

Operational highlights

  • Working-interest production within guidance at 51,183 boepd, despite demand fall and OPEC+ quotas
  • Liquids production of 33,714 bopd, gas production of 101 MMscfd
  • Eland OML40/Ubima assets produced 8,855 bopd, 26.3% of Group liquid volumes
  • Low unit cost of production at $8.90/boe, with cost-cutting initiatives ongoing, particularly at OML40/Ubima
  • Drilled/completed nine wells and brought eight onstream in 2020
  • ANOH project now budgeted under original $700 million FID estimate, but COVID-19 related delays to H1 2022

Corporate updates

  • Creation of New Energy unit to manage gas processing and future low carbon to zero carbon initiatives
  • AGPC financing signed in February 2021, $260 million raised, with commitments for $450 million
  • Advanced stage to extend maturities for existing Eland RBL, raise additional funding via offtaker financing for Elcrest capex
  • $5.0 million funding of share purchase programme, by Trustee, for Seplat LTIP, starting immediately
  • Board directive to eliminate Related-Party Transactions by end of 2021

Outlook for 2021

  • Full-year production guidance of 48-55 kboepd, subject to market conditions
  • Full-year capex expected to be around $150 million with a focus on gas projects and an exploration well to meet reserves replacement targets

Roger Brown, Chief Executive Officer, said: “2020 was a challenging year for the Company but Seplat has once again shown its resilience and ability to overcome challenges and deliver production in line with guidance, operating with minimal incidences of COVID-19 cases.

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Source: PetroleumAfrica

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