Commenting on the results Austin Avuru, Seplat's Chief Executive Officer, said "In 2015 we delivered on what was in our control, posting best-in-class reserves and production growth and taking our gas business across a transformational threshold with further expansion still to come. We acted quickly and decisively in response to the weak oil price environment, adjusting our work programme and cost structures, and against a bleak industry backdrop remained firmly profitable with a strong balance sheet underpinning us. Having started the year strongly, our 2016 full year production expectation has been impacted by the current shut-in of the Forcados terminal. However, we are much better positioned to withstand such interruptions than in prior years. Our gas business takes on additional importance by providing a continuous revenue stream that is de-linked to the oil price and our enlarged portfolio offers us scope for greater diversification. Finally, I would like to re-emphasise our strong focus remains on protecting the business and managing for value through driving further cost reductions, optimising operations, deleveraging and strengthening the balance sheet in preparation for opportunities that will inevitably follow this current downturn."
Working interest 2P reserves at end 2015 independently estimated to be 209 MMbbls and 1,572 Bscf, equivalent to 480 MMboe (+71% year-on-year; organic reserve replacement ratio of production in the year 2x and 14x taking into account inorganic volumes). Working interest 2C resources stand at 57 MMbbls and 238 Bscf, equivalent to 98 MMboe
- OMLs 4, 38 and 41 reserves up +6% and reserves booked at OML 53 and OML 55 for the first time
Full year average working interest production of 43,372 boepd ahead of guidance and up +41% year-on-year
- Liquids production up +20% at 29,003 bopd and gas production up +119% at 86 MMscfd
- Working interest production from start of year to Forcados terminal shut-in mid-February 2016 was over 52,000 boepd
Completed Phase I expansion of Oben gas processing facility mid-year - positive financial impact as gas revenues increased +200% year-on-year to US$77 million with full-year benefit to be felt in 2016; additional processing modules ordered for Phase II expansion to take gross processing capacity to minimum of 525 MMscfd from the current 300 MMscfd
Net profit for 2015 was US$67 million reflecting lower oil price; cash flow from operations before working capital was US$190 million and capital investments US$152 million
NPDC receivables balance further reduced to US$435 million at end 2015 (from US$504 million at HY 2015) with additional receipts post period end bringing current net balance to around US$350 million
Cash at bank and net debt at year end stood at US$326 million and US$573 million respectively; successfully completed US$1 billion debt re-financing in January 2015
Full year 2016 working interest production guidance set at 23,000 to 28,000 bopd oil & condensate and 18,000 to 20,000 boepd gas (overall 41,000 to 48,000 boepd) taking into account current Forcados terminal shut-in and based on full year uptime of 67%; 2016 capital expenditures expected to be around US$130 million
Recommended final dividend of US$0.04 per share, bringing the total payment for the year to US$0.08 per share
