Seplat Energy Plc has announced plans to drill a second exploration well in 2027 following the discovery of oil and gas across five reservoir intervals in its Aku-01 exploration well in Petroleum Prospecting Licence (PPL) 2A25.
The discovery has de-risked four additional prospects on the licence, with the company planning to test one of them through another exploration well next year.
Seplat disclosed this in its unaudited nine-month financial results for the period ended September 30, 2026, describing the discovery as evidence of the potential of its exploration portfolio and the quality of Nigeria’s subsurface resources.
Commenting on the development, the company’s Chief Executive Officer, Effiong Okon, said the exploration success highlighted the opportunities within its asset portfolio.
He described the discovery as a strong indication of Nigeria’s significant hydrocarbon potential.
Meanwhile, Seplat recorded a seven per cent increase in average working interest production to 144,999 barrels of oil equivalent per day (boepd) in the first nine months of 2026, compared with 135,636 boepd in the corresponding period of 2025.
Onshore production increased by 22 per cent, while third-quarter output rose by 13 per cent to 155,801 boepd from 137,888 boepd recorded in the same period last year.
The company attributed part of its improved production to its offshore idle well restoration programme, which added gross joint venture production capacity of 33,700 barrels of oil per day and 176 million standard cubic feet of gas per day from 41 restored wells.
Seplat also reported that commercial gas sales through the OB3 pipeline commenced in September, following initial debt principal repayments on the Assa North-Ohaji South gas project during the third quarter.
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Its financial performance strengthened, with revenue rising by 27 per cent to $2.764bn from $2.177bn in the corresponding period of 2025.
Adjusted earnings before interest, taxes, depreciation and amortisation increased by 38 per cent to $1.53bn, while net income surged by 174 per cent to $260.2m.
Earnings per share also climbed by 172 per cent to 42 US cents, compared with 16 US cents recorded a year earlier.
Cash generated from operations stood at $1.479bn, while net debt declined by 65 per cent to $234.9m at the end of September, compared with $673.3m at the end of 2025.
The company further disclosed that it repaid the outstanding $100m balance on its Acquisition Payment Facility on October 27, completing repayment of all debt raised to acquire Mobil Producing Nigeria Unlimited in 2024.
On shareholder returns, Seplat declared a third-quarter dividend of 19 US cents per share, comprising a five-cent core dividend and a 14-cent special dividend. This brought its cumulative dividend for the year to 40 US cents per share.
The company retained its full-year dividend guidance of $270m, equivalent to 45 US cents per share, and maintained production guidance at the upper end of its revised range of 145,000 to 155,000 boepd.
However, it reduced its capital expenditure forecast to between $280m and $340m from the earlier projection of $360m to $440m, citing changes in project schedules following the late arrival of an offshore rig.
Seplat also raised its unit operating cost guidance to between $15.5 and $16.5 per barrel of oil equivalent from $14.5 to $15.5, partly reflecting ongoing costs associated with the Yoho project.
The company said the Yoho restoration project was completed in the third quarter, but production start-up was delayed by pipeline damage identified during the period. Output was expected to resume in the fourth quarter of 2026.
On environmental performance, Seplat reported a 14 per cent reduction in group carbon emissions intensity to 37.4 kilogrammes of carbon dioxide per barrel of oil equivalent, compared with 43.6 kilogrammes in the corresponding period of 2025.
