Seplat earmarks $320m to deliver 13 new wells, others

Seplat Energy Plc, an indigenous energy company, has earmarked between $260 million and $320 million for capital expenditure on delivering 13 new oil and gas wells and other projects in 2025.

The breakdown of the new wells includes nine oil wells and four gas wells. Seplat revealed in its audited results for the year that ended December 31, 2024.

The new wells are Oil Mining Leases (OMLs) 4, 38 and 41: Seven, OML 53: Two, OML 40: Four. “Of these, 9 are oil wells, and 4 are gas wells,” Seplat stated.

Further analysis of the annual report showed that the company is expecting to spend between $180 million and $220 million while Seplat Energy Producing Nigeria Unlimited (SEPNU) to gulp between $80 million and $100 million.

“Initial 2025 capex guidance $260-320 million. (Seplat Onshore $180-220 million, SEPNU $80-100 million). Plan includes 13 new wells onshore, replacement of an inlet gas exchanger on East Area Project (EAP) NGL project offshore and other capex projects,” the company said.

Seplat Onshore’s key focus is new well stock to offset natural decline by drilling the 13 new wells, completing the second MRU at the Sapele IGP and the delivery of Oben, Amukpe, Sapele & Ohaji flares out projects.

Meanwhile the company, through SEPNU, is targeting the capital projects and long-term planning to improve reliability, uptime and safety with the Installation of the Inlet Gas Exchanger on the East Area Project (EAP) NGL facility and long lead items for 2026 onward drilling program

Roger Brown, chief executive officer, said: “2024 was truly a defining year for Seplat Energy. In addition to delivering key growth projects in our existing onshore business, we closed out 2024 by completing the acquisition of SEPNU, the largest in the Company’s history, which adds significant scale and attractive low-cost growth potential.

“In the first few months since the acquisition, it has already become clear that there is significant prize in the offshore shallow water, operating a closed loop system from well-head production to hydrocarbon sales at the terminal.

“This year, we will focus on re-opening previously shut in wells in SEPNU, alongside another full drilling campaign for our onshore assets and we look forward to delivering first gas at ANOH. We will also accelerate the subsurface work and contracting needed to commence an infill drilling campaign at SEPNU.

“Our confidence in the future trajectory for the enlarged business, combined with our strong financial position, means that we are delighted to declare a special dividend again for 2024, lifting the total dividend for 2024 to $16.5 cents per share, an uplift of 10 percent from 2023.

“The Seplat Energy team is rightly proud of its achievements in 2024, and we fully intend to continue our mission to create significant shared value and enhance prosperity for all our stakeholders in Nigeria and beyond.”