TheCable

Seplat Petroleum Development Company plc on Thursday announced its continuous effort to  deliver its 2014 target, a gross operated production exit rate of 72,000 bbl/d despite the challenges.

The pronouncement, made at the Interim Management Statement (IMS) and update on its operations year-to-date 2014,  comes a month after the company successfully got listed on the Nigerian Stock Market and London Stock Exchanges where it raised $535m at NGN 576 per share.

The company announced that its average operated production in the first quarter was 36.5 thousand barrels of oil per day (mbbl/d) and 66.9 million standard cubic feet of gas per day (mmscf/d).

“This figure was as a result of  36 days of shudown of Shell’s Trans Forcados Pipeline (TFP) in the first quarter of 2014, and 7 days of shut- down in April,” Chief Executive Officer of Seplat, Austin Avuru, said.

The company said production has resumed at projected rates and SEPLAT remains on track to deliver irrespective of the losses from the shutdown of SPDC’s Forcados Pipeline (TFP).

Seplat, which recently signed a 5-year Gas Sales Agreement with Azura Edo IPP, also stated at its IMS that its expansion of the Oben gas processing facilities remains on track, to enable the company to develop the capacity to its expand production and sales, in order serve to meet the fast growing domestic demand for gas.

“The completion of our pipeline to the Warri refinery and commencement of crude deliveries to Warri was a strategically-important milestone for Seplat,” Avuru added.

“This pipeline provides an alternative export route for our liquids, is under Seplat’s control, and will further reduce the reconciliation losses imposed on our exports via Forcados.”

Seplat’s net cash position currently is approximately US$ 285 million, following receipt of the gross proceeds of the Initial Public Offering (IPO) of US$535 million and repayment of the MPI Paris shareholder loan of US$48 million.

“We will retain our focus on acquisition opportunities where we can leverage Seplat’s technical and financial strength, and we will continue to exercise price discipline,” the CEO affirmed.

“All of our development projects remain on track, and we are confident of delivering our target production exit rate for this year.”

Seplat’s Interim Results for the six months ending June 30, 2014, are expected to be announced in late July 2014.