Seplat Energy Share Discussion Threads

[seatank8300] 10/5/2022 13:26

News is coming: replacement of the conflicted chairman, which removes a governance risk, and commercial opening of the Ampuke Escravos pipeline, both likley within the next 2-6 weeks. The Exxon deal will take a little longer, but just a matter of time IMHO.

[sunbed44] 10/5/2022 13:10

We need news

[sunbed44] 08/5/2022 19:30

Looking primed for the next leg up and news on the acquisition could drop any time now.

[sunbed44] 04/5/2022 14:33

Always nice to be in a stock that goes up on ex-div date

[krall] 29/4/2022 08:12

Sale of Ubima - it feels like a good price they recived. Not much production or reserves booked on the licence.


Decision to exit Ubima to focus on more profitable assets; agreement reached to sell Seplat Energy's share to its JV partner for $55 million. 2P reserves reduce by 2 MMboe.

We have not reported any production for Ubima in Q1 2022 as the Seplat Energy Board approved an exit from the Ubima asset in April 2022. The Ubima asset, operated by All Grace Energy Limited (AGEL) was acquired in 2019 as part of the Eland acquisition. A settlement agreement of $55 million has been agreed with AGEL and we expect to receive payments in due course.

Ubima is in a high operating cost environment, with major evacuation challenges currently being experienced in the Niger Delta. Because substantial capital expenditure would be required to create more secure evacuation routes, the decision to exit will enable us to invest in other parts of our business that generate higher returns. Current reserves in Ubima stand at approximately 2 MMbbls and necessary adjustments to the financial statements will be made in the second quarter and reported in the 6M 2022 results.

[deandavison245] 28/4/2022 17:03

Seplat Energy PLC - Lagos-based energy company focused on Nigeria - Reports a pretax profit of USD83.4 million in the first quarter of 2022, nearly triple the previous year's figure of USD28.0 million. Crude oil revenue was 74% higher at USD216.2 million, up from USD124.1 million. This reflected higher average realised oil prices in the quarter, Seplat explains. Gas revenue fell by 9.7% to USD25.6 million from USD28.4 million due to lower gas volumes and lower customer offtake. Production stoppages in February and March also contributed to lower gas revenue.

Working interest production averages 47,603 barrels of oil equivalent per day, down 1.3% from 48,239boepd the previous year. Company says its full-year production guidance of between 50,000 to 60,000 boepd remains unchanged. Expects the Amukpe-Escravos pipeline to be fully operational by the end of the second quarter of 2022.

Chief Executive Roger Brown says: "Seplat Energy delivered a good quarter that benefited from higher oil pricing, which offset lower production owing to continuing problems with the Trans Forcados Pipeline. However, the alternative Amukpe-Escravos Pipeline is mechanically complete and once we have signed the commercial agreements, we expect Chevron Corp to be lifting our oil through the Escravos Terminal in the third quarter."

[husted] 26/4/2022 00:32

Does anyone have the link to Nigerian forum where Seplat is discussed please?

[piperpeter] 26/4/2022 00:11

sunbed44,

You haven't, as yet, answered the question asked of you on one of the PPC threads.

Pp.

[sunbed44] 25/4/2022 13:28

1 trade and 4 trade - looks like RNS this week. Wonder what it will be

[sunbed44] 24/4/2022 17:55

Nigeria oil blast: Nation in trauma after refinery deaths - President Buhari https://www.bbc.co.uk/news/world-africa-61207441

[sunbed44] 22/4/2022 13:24

Great were strengthening the BOD before the exciting time of growth that awaits us during 2022 and in to the future.

[seatank8300] 21/4/2022 18:55

Q1: 1.0 MMbbls @ $50/bbl & 1.0MMbbls @ $55/bbl;
Q2: 2.0 MMbbls @ $55/bbl;
Q3: 1.0 MMbbls @ $55/bbl

hxxps://www.seplatenergy.com/media/qqrahhro/seplat-energy-fy-2021-results-presentation-final-28022022.pdf

Whether they roll them forward or settle them and replace with much higher oil price level hedges, I don't know. Either way, cash generation should jump this year with the oil price at the current level. Operating cash flow was $369m in 2021. This year will see a good increase on that: oil price much higher, ampuke escravos pipeline operational, less production downtime due to bottlenecks, improved flow at OML 40 (Eland asset), hedges rolling off.

[sunbed44] 21/4/2022 12:43

Thanks ST - do you know what SEPL hedging position / strategy looks like please.

[seatank8300] 21/4/2022 11:50

We are expecting good news on the Ampuke Escravos pipeline + replacement of Chairman imminently, not to mention Q1 results which should reflect rising oil prices and cash flow.

[seatank8300] 21/4/2022 11:48

Much of free float is held in Nigeria by institutions who don't trade it. Traded vol should improve markedly as the share price rises and current deep value holders become happy to let go of some stock. It's hard to justify selling at this valuation, especially with such a nice yield and prospect of that rising.

[sunbed44] 21/4/2022 11:30

Moving both ways on small trades, im suspecting theres not a lot in free float here. Looking forward to next news. Nigeria in DESPERATE need of increased energy / power and im thinking we are very well positioned for growth here and hopefully sometime in 2022

[sunbed44] 20/4/2022 14:36

So pleased i added a few times last week. Im locked and loaded here now but just wished we got to know a bit more about whats going on.

[seatank8300] 19/4/2022 16:28

I missed an important catalyst: hedges rolling off. Basically mostly gone or rolled over at much higher levels by end of Q2. This will be a big positive to cash generation.

[charggg] 19/4/2022 16:11

Let's hope they complete the acquisition. Then the upside is massive.

[seatank8300] 19/4/2022 13:07

Everyone will be surprised if the acquisition isn't approved by government as Exxon and Seplat would have sought Buhari's blessing long ago - it's a formality in my view. Nigeria can't stop Exxon and Shell shedding operations, and rather it br to indigenous operators. In my view, no worries here. This stock has been massively underestimated by the market and recent momentum is only the beginning.
Catalysts are:
Deal approval
Chairman/Founder replacement
Amukpe Escravoa pipeline opening
New wells this year
Productivity improvement of Eland assets
Repayment of Eland loan
Commercial opening of ANOH
Raised dividend
FTSE 250 inclusion

Is this enough??!

[sunbed44] 14/4/2022 14:50

Not the best top up Ive Eva done oh well

[sunbed44] 14/4/2022 10:44

Paid a bit over the odds really for my 13838 but i was struggling to get any tbh and in the scheme of things it hardly dented my average so im quite content. Really hoping this deal comes off though as this could really be the making of SEPL. We have a better BOD now and the only real concern of mine is that were only currently on one fragile country. But hey ho we cant have it always and the higher the risk the higher reward we potentially get. Ill leave this board now until after the break as it seems really quiet anyway and i guess not many will be reading all my boring stuff.