||ORD NGN0.50 (DI)
||EPS - Basic
||Market Cap (m)
|Oil & Gas Producers
Seplat Petrol. Share Discussion Threads
Showing 201 to 219 of 225 messages
|$80 billion 5yr China oil and gas investment deal agreed with Nigeria,http://allafrica.com/stories/201606300152.html|
|Read FirstEnergy Capital's note on SEPLAT PETROLEUM, out this morning, by visiting hxxps://www.research-tree.com/company/NGSEPLAT0008
"Market Reaction: negative on low production (compared to what we carry), higher net debt than we anticipated, growing NPDC receivables from the US$320 mm reported in the last announcement and our expectations of a reduced FY16 Guidance given continued shut down at Forcados. ..."|
|Struggling to find a Nigerian operation that is not affected by such shenanigans, in truth are they that much worse than AIM companies that rob the investor through continual funding-dilution?
Investing in Nigeria is an eyes wide open experience, expect many stakeholders to take a slice one way or another; helps mind if you're on the inside of such games ;)|
|Any Nigeria investment play is untouchable for me. I learned the hard way. If this were anywhere else on the planet, it would be in multiples of where it is today. As you say, such a shame.|
|If that wasn't bad enough.......
Nigeria: Oil output drops further as Agip declares force majeure on Brass River
21 April 2016, Lagos – The pangs of the several production halts may have continued to assail Nigeria’s economy, as the Nigerian Agip Oil Company (NAOC) has shut crude oil production from its Brass River facility.
This is coming on the heels of Angola taking over from Nigeria as the highest oil producing nation in Africa.
The Organisation of Petroleum Exporting Countries (OPEC) latest monthly report revealed that Nigeria’s oil production fell by 67,000 barrels per day (bpd) in March.
The low production levelbeing recorded by the country may not be unconnected with the production halts at Brass River coupled with the Shell Petroleum Development Company (SPDC’s) operated Forcados export terminal that was shut in February this year.
Forcados, which has the capacity to export about 400,000 barrels per day (bpd), was scheduled to export some 249,000 barrels bpd in February and March, but the constraints to repair works on the vandalised pipeline have dashed the hope of further export through the lines in the last few months.
However, there were indications that the repair works on the pipeline feeding Forcados crude oil to the export terminal may last till June.
Agip reportedly declared a force majeure on the Brass River grade of crude oil, after a fire was detected on the pipeline that lifts crude to the terminal.
About 142,000 bpd of Brass River was due to be exported in May according to a loading programme.
According to the OPEC report, Nigeria produced 1.677 million bpd in March, down from 1.744 million barrels in February, while Angola oil output rose from 1.767 million bpd to 1.782 million in the same period.
This is the second time in four months that Angola would overtake Nigeria’s crude oil production level.
OPEC has reviewed the estimates for 2016 world oil demand lower by 50,000 bpd, to a total of 1.20 million bpd of projected oil demand growth for the year.
|I think it's Lekoil that have interest in opl241. Offshore field I think.
Seplat is onshore. Lower operational costs and gas fields close to where it's needed.
Not much interest in Seplat in uk, bit dead here. But it's listed in Nigeria, bit more interest there.|
|Whiskey in the jar..is the consortium asset opl241?|
|Seplat's projections for 2016
11 Apr 2016, 12:00 am
Seplat's projections for 2016
Seplat has forecast a 5 percent growth in revenues to N119.8 billion ($599 million).
Seplat Petroleum Development Company recently held its full-year 2015 analyst/investor conference call in which the company said it expects a much better performance in 2016 as production volume increases, particularly from its gas business. Low oil prices, which have declined by more than 60 percent since July 2014, as well as significant downtime at Seplat's Trans Forcados pipeline, impacted the company's revenues in 2015.
Seplat, a leading Nigerian oil and gas exploration and production company, released its 2015 audited report and financial statements last month, showing 26.4 percent year-on-year (YoY) decline in revenue from N124 billion ($775 million) in 2014 to N113 billion ($570.5 million) last year. The company's profit before tax (PBT) fell 65.5 percent YoY to N17 billion ($87 million) compared with N40 billion ($252 million) in 2014.
The downbeat results masked the company's strong production last year as its average daily oil production rose 29 percent from 30,823 barrel of oil equivalent per day (boepd) in 2014 to 43,372 boepd last year. In its projection for 2016, Seplat has informed investors that it anticipates net production to rise by 9 percent YoY to 47,000 boepd. This projection is within the management’s production guidance of 41,000 boepd to 48,000 boepd for this year.
With the inclusion of its new assets -- OML 53 and OML 55 -- which the company acquired from Chevron Nigeria following a Supreme Court judgement in January, Seplat has forecast a 5 percent growth in revenues to N119.8 billion ($599 million).
Seplat's management has proposed N26 billion ($130 million) for capital expenditure in 2016, down from N30.4 billion ($152 million) and N64.2 billion ($321 million) in 2015 and 2014, respectively. The lower CAPEX spend this year and anticipated profit after tax (PAT) of around N16.2 billion ($81 million) are due to the uncertainty over the renewal of the tax holiday Seplat was given by the Nigerian government in the last three years. The Nigerian Investment Promotion Council (NIPC) is yet to approve the firm's pioneer status, even though it is renewable for another two years. Seplat said the exemption from tax payment enabled it to ramp up capital projects during the period (2012-2015).
The company invested over N60 billion ($300 million) in gas projects over the last two years. Seplat has a strategy to become a preeminent supplier of natural gas in the Nigerian domestic power sector. Seplat’s investments have raised gross gas production from an average of 90 million standard cubic feet of gas per day (mmscfd) in 2012 to around over 300 mmscfd in 2015. The firm has signed gas supply contract agreements with several power projects in Nigeria including Azura Power, Sapela Power Plant, Geregu Power Plant and Nigerian Gas Company.
CardinalStone Partners Limited, a Lagos-based financial advisory and investment management firm, said extended shut-downs at Seplat's Trans Forcados Terminal could negatively impact production guidance since the terminal is crucial to evacuation from key oil fields.
The asset management firm has increased the Target Price (TP) for Seplat's stock to N376.38, from the previous TP of N312.79. CardinalStone has also issued a Buy recommendation -- a rating given to equities with strong fundamentals -- for Seplat’s stock, which is listed on the Lagos and London stock exchanges. Seplat's share price, according to CardinalStone, is tied to the flux in oil prices. Its stock would perform better if oil prices rebound while a weaker than expected oil price environment would put downward pressure on the price.
|Seplat among bidders to build new oil refineries:
|Shell declares force majeure on Forcados oil export
By Sulaimon Salau on February 23, 2016 12:41 am
SHELL Petroleum Development Company of Nigeria Limited (SPDC) yesterday said it had declared force majeure on Forcados oil export following disruption in production caused by the spill on the subsea crude export pipeline.
The Media Relations Manager, SPDC, Precious Okolobo, who confirmed this yesterday, said the force majeure was effective 1500hrs (Nigerian time) February 21, 2016.
Meanwhile, he said the SPDC is intensifying efforts on containment and oil recovery while also finalising repair plans.
Although he did not state the quantity of the oil shut-in, but Forcados terminal is one of Nigeria’s biggest terminals with capacity to export 400,000 barrels a day.
The oil recovery, according to Okolobo, is supported by industry group Clean Nigeria Associates (CNA) and other oil companies, adding that Shell has deployed specialised equipment to contain the spill.
SPDC, he said, has also mobilised clean-up teams and contracted a specialised aircraft to join in the response. Production into the terminal and crude oil exports were stopped soon after the spill was discovered.
|Broker's note from RBC Friday:
Seplat gains control of OML 53 and OML 55
January 29, 2016 12:50 pm ET
Late today, Seplat Petroleum Development announced that the Supreme Court of Nigeria had delivered its judgement in favour of Seplat and Chevron Nigeria Limited (CNL) in a litigation brought against both parties by Brittania-U Nigeria Limited that had to date prevented the full transfer to Seplat of a 40% working interest in OML 53 and effective 22.5% working interest in OML 55 (held through 56.25% ownership of the share capital of Belemaoil Producing Limited) that the company had acquired from CNL in February 2015.
Our view: The decision is welcome as it enables Seplat to target the gas on OML 53 and further diversify its production stream; gas prices in Nigeria are not linked to oil prices – domestic supply obligation (DSO) volumes are $2.5/Mcf, and under willing buyer/willing seller commercial contracts pricing have improved to $3.5/Mcf+. OML 53 fits neatly within the company’s strategy of commercialising and monetising natural gas in the Niger Delta, to supply the rapidly growing domestic market. OML 55 also includes some opportunities to generate near-term production growth, cash-flow and reserve replacement in the onshore and shallow water areas, but these are unlikely to be a near-term priority while oil is trading at ~$35/bbl, in our view.
Acquisitions: Back on 5th February 2015, Seplat announced that it had acquired a 40% working interest in OML 53 and an effective stake of 22.5% in OML 55 from CNL. The deals were concluded – Seplat’s current balance sheet (YE15 gross debt of $863m and cash of $326m (as updated earlier this week)) already reflects the impact of the acquisitions, except for some minor working capital adjustments. However, the company was unable to access and direct operations due to the court injunction.
Assets: OML 53 covers an area of ~1,600km2 and is located onshore in the north eastern Niger Delta. The block contains the large undeveloped Ohaji South gas and condensate field, which is planned to be developed in conjunction with Shell’s Assa North field on OML 21 - the ANOS project. The block also encompasses the Jisike oil field, which is currently the only producing field on OML 53. Gross production from Jisike in 2015 averaged 1,715b/d (686 b/d net). The company estimates net recoverable hydrocarbon volumes attributable to its 40% working interest to be ~600Bcf gas and 50mmbbl of oil and condensate. OML 55 covers an area of approximately 840km2 and is located in the swamp to shallow water offshore areas in the south eastern Niger Delta. The block contains five producing fields (Robertkiri, Inda, Belema North, Idama and Jokka). Gross production from OML 55 in 2015 averaged 7,746b/d (1,743b/d net). The company estimates net recoverable hydrocarbon volumes attributable to its 22.5% effective working interest to be ~20mmbbl of oil and condensate and ~160Bcf of gas.
|IIRC the acquisition was completed back in Feb 2015 but with possible further deferred payments should POO rise above $90 bbl. Let's hope we have to make those further payments this year!
SEPL have literally just taken over the ex CNL blocks as operator. It would be reasonable to expect some guidance and ops update over the coming weeks.
The NPDC money would be a bonus but Nigeria is a busted flush with $30 oil.|
|dukedosh - good info on the court ruling.
a few questions you maybe can answer. Im very much aware of the long term potential of the blocks acquired from Chevron, now with the deal closed, are there any short term triggers and gains, maybe some interesting newsflow?
Is everything around the payment for the blocks done?
I´ve always thought this is a very interesting company and is probably a very good long hold, the oily part of the company is the most dynamic, but i think key to success in Nigeria and working with NNPC/NPDC will be to continue expand and increase the domestic gas sales.
Lets hope the deal set up to get money back from NPDC really works.
"Pursuant to the agreement signed in July 2015, the Company continues to offset NPDC's 55% share of gas revenues from OMLs 4, 38 and 41 against the outstanding NPDC receivables balance which stood at approximately US$449 million (net) as at 31 December 2015. Furthermore, NPDC and Seplat are working through the final approvals process to implement a forward sale of a portion of joint venture oil production that will retire some of the outstanding NPDC receivables balance and fund joint venture cash calls going forward."
The outstanding sum is shrinking but mayby not in a very fast pace.
"The outstanding NPDC net receivable as at 30 September was US$461 million, down from US$504 million at mid-year, the reduction coming primarily as a result of the agreement signed between Seplat and NPDC in July whereby gas revenues attributable to NPDC's interest in OMLs 4, 38 and 41 are offset against the balance of arrears. Pursuant to the agreement NPDC and Seplat are also engaged with potential counterparties to provide joint venture loan facilities of up to US$300 million to fund cash calls with effect from January and further accelerate repayment of arrears".|
|OML 53 and OML 55
At last they put out the RNS, only 4 hours after their Tweets!|
|SP just marked up. I think they must have read your post WITJ. ;-))|
|I don't think currency exchange fluctuations explain a rise from 152 to 194 in only a week!
Shareprice has risen almost 30% in Nigeria in one week.|
|The Naira to GBP currency weakness either killed the share price rise here or caused the share price rise in Nigeria. It's probably the later.