SEPLAT Holds AGM As Shareholders Approve US$0.08

SEPLAT Petroleum Development Company Plc, a leading Nigerian independent oil and gas exploration and production company, held its 2016 Annual General meeting on Wednesday June 1 in Lagos with over 500 shareholders in attendance.

The company reiterated its strong operational performance and expansion of the gas business with the shareholders approving the final dividend of US$0.04 per share, bringing the total dividend payment for 2015 to US$0.08 per share.With the approval of the shareholders, the final dividend will now be paid.

While speaking on the Company’s 2015 results, the Chairman, ABC Orjiako affirmed that, “Despite the obvious headwinds facing the sector we have made progress on all aspects of our strategy delivering best-in-class production and reserves growth, and transforming our gas business which achieved 185% year on year growth.”

In a significant step forward for its gas business, during mid-year 2015, SEPLAT has successfully completed and commissioned the Oben gas plant phaseI expansion. This expansion saw the Company’s overall gross processing
capacity double to 300 MMscfd.

The Oben gas plant phase II expansion is underway with additional processing modules ordered. Once installed, the additional processing modules will take gross processing capacity to an expected minimum level of 525 MMscfd.

Alongside the significant increase in gas production, the positive financial impact of SEPLAT’s gas business was evident as revenues from gas sales increased 185% year-on-year to US$77 million.

The Chairman further stated that “our (Seplat’s) position as Nigeria’s leading independent E&P company has been reinforced in the past 12 months during which we delivered on corporate performance target despite the oil price
volatility.

“Our resilience is testament to the quality of our business, our strategy, our management team and staff, and our adherence to strong corporate governance policies,”he declared.

Further on the company’s performance, the CEO, Austin Avuru 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. Against a bleak industry backdrop, we remained profitable with a strong balance sheet underpinning us,” he noted

In respect of 2016 performance, the CEO added that the company’s “…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 from the oil price. Our enlarged portfolio offers us the scope for greater diversification.

” I would like to re-emphasise that our strong focus remains on protecting the business and managing value through effective cost reductions, optimising operations, deleveraging and strengthening thebalance sheet.This will strategically position the Company to take advantage of opportunities that will inevitably follow this current downturn,” he concluded.

At SEPLAT, working interest 2P reserves at the end of 2015 had increased 71% year-on-yearto 480 MMboe, with a further 98 MMboe recognized as 2C resources.

Total reserves is at 578 MMboe.Average working interest production during 2015 averaged 43,372 boepd, ahead of guidance and up 41% year-on-year.

Within this period, oil and condensate production accounted for 29,003 bopd (up 20% year-on-year) and natural
gas production was 86 MMscfd (up 119% year-on-year). All of the natural gas production was supplied to the domestic market.

Also, gross revenue for the full-year stood at US$570 million, down 26% year-onyear.Net profit for 2015 stood at US$67 million and cash flow from operations before movements in working capital stood at US$190 million
against capital investments of US$152 million. Cash at bank and net debt atyear end stood at US$326 million and US$573 million, respectively.

At the end of 2015, the net NPDC receivables balance stood at US$435 million,down from US$463 million at the end of 2014. Further receipts post period end have reduced the net NPDC receivables balance to a current level of around US$350 million.

Looking ahead throughout 2016, the Company has set full year production guidance at 41,000 to 48,000 boepd and expects its capital expenditures tobe around US$130 million.