Seplat Energy targets 850mmscf gas output

Sepalat Energy is ramping up its operations with ambitious plans to supply over 850 million standard cubic feet of gas. CEO Roger Brown revealed the company's focus on accelerating growth during an exclusive interview with CNBC Africa's Kenneth Igbomor at the company's Annual General Meeting. Brown highlighted the completion of the acquisition of NPNU, now known as SEPNU, as a significant development for the company. This acquisition has propelled Sepalat Energy into a new phase, positioning it as the full owner of offshore blocks and marking a strategic move towards enhancing its production capacity. The impact of this acquisition is reflected in the Q1 2025 results, with turnover reaching 800 million. The CEO emphasized the transformational nature of the transaction, citing a substantial increase in production, significant reserves, and the unlocking of previously inactive wells. Brown described this phase as awakening a 'sleeping giant' within the company, as they work on reactivating closed wells to boost daily production. He noted the successful opening of ten wells, contributing 11,000 barrels per day, with plans to leverage this momentum to open more wells in the upcoming quarters. Brown commended the well-trained staff for their commitment to revitalizing the company's operations and expressed enthusiasm for the reinvestment initiatives, signaling a positive outlook for future growth. As part of their strategic roadmap, Sepalat Energy is prioritizing the role of gas in its operations, recognizing Nigeria's significant gas reserves. Brown outlined the company's gas-centric approach, with three operational gas plants and the imminent completion of the ANO gas plant. The ANO project is poised to enhance the company's gas processing capacity and contribute to the onshore domestic market. With plans to explore both domestic and export markets, Sepalat Energy is poised to capitalize on its gas reserves and drive further expansion. In response to market dynamics, the company remains resilient amid oil price fluctuations by adopting risk management strategies like hedging. Brown highlighted a production forecast of 120,000 to 140,000 barrels of oil equivalent, with a trajectory towards increased production as new wells are brought online. Shareholders responded positively to the company's dividend increase and expressed eagerness for continued growth and returns. Sepalat Energy plans to further engage stakeholders in a Capital Markets Day in September, offering a comprehensive overview of its future trajectory and investment opportunities. As the company propels forward with its growth agenda, Brown assured shareholders of a promising future ahead, underlining Sepalat Energy's commitment to value creation and sustainable expansion.