• Cuts debt by 65%, Q3 production climbs 13% to 155,801 bpd
•Clears all debt raised for $1.3bn MPNU acquisition
• Gets first ANOH gas sales through OB3 pipeline
•Company’s emissions intensity falls 14%
Emmanuel Addeh in Abuja and Peter Uzoho in Lagos
Seplat Energy Plc yesterday announced an oil and gas discovery at its Aku-01 exploration well in Nigeria, with preliminary internal estimates indicating a humongous 157 Billion Cubic Feet (BCF) of gas and 19 million barrels of oil in place.
The company also said its total revenue grew to $2.76 billion, even as Profit After Tax (PAT) rose 174 per cent to $260.2 million in the first nine months of 2026.
The hydrocarbon discovery, made in five reservoir intervals in Petroleum Prospecting Licence (PPL) 2A25 after the end of the reporting period, also de-risked four adjacent prospects, one of which Seplat said it plans to test through a second exploration well in the Aku area in 2027.
Seplat, which holds a 40 per cent operating interest in the licence, said the oil discovery was not part of the original well plan. The well is being completed as a potential future production well that could be connected to existing infrastructure, enabling early monetisation of the hydrocarbons.
The company disclosed the discovery in its unaudited results for the nine months ended September 30, 2026, released to the public. The results showed that profit after tax increased from $95.1 million in the corresponding period of 2025, while revenue climbed 27 per cent to $2.76 billion from $2.18 billion.
In the same vein, operating profit rose 50 per cent to $1.07 billion, while adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 38 per cent to $1.53 billion from $1.11 billion.
Seplat’s average realised oil price rose 34 per cent to $96.19 per barrel from $71.93 per barrel a year earlier. The company achieved an average realised price of $100.44 per barrel in the third quarter, a premium of $10.21 to the average Brent price during the period.
The improved financial performance came alongside stronger production. Average working-interest production for the nine months increased 7 per cent to 144,999 barrels of oil equivalent per day (boepd), compared with 135,636 boepd in the corresponding period last year.
Production in the third quarter averaged 155,801 boepd, up 13 per cent from 137,888 boepd a year earlier and five per cent above the second-quarter level.
Besides, onshore production rose 22 per cent year-on-year to 67,445 boepd during the nine-month period, supported by improved output from the company’s assets and the ramp-up of the Assa North-Ohaji South (ANOH) gas project.
Following the stronger operational performance, Seplat narrowed its 2026 production guidance to between 145,000 and 155,000 boepd, from the previous range of 135,000 to 155,000 boepd.
The company’s balance sheet also strengthened considerably. Net debt fell 65 per cent to $234.9 million at the end of September, compared with $673.3 million at the end of 2025. Its net debt-to-EBITDA ratio improved to 0.14 times from 0.53 times.
Seplat said it repaid the outstanding $100 million balance on its advance payment facility on October 27, completing the repayment of all debt raised to finance its 2024 acquisition of Mobil Producing Nigeria Unlimited (MPNU), subsequently renamed Seplat Energy Producing Nigeria Unlimited.
Cash at bank increased to $556.9 million at the end of September from $332.3 million at the end of 2025. Cash generated from operations rose six per cent to $1.48 billion, although free cash flow declined 10 per cent to $749 million.
The company declared a third-quarter dividend of 19 cents per share, comprising a core dividend of five cents and a special dividend of 14 cents. Its full-year dividend guidance remains $270 million, equivalent to 45 cents per share.
Commenting on the results, Seplat’s Chief Executive Officer, Effiong Okon, said the company’s third-quarter production averaged more than 155,000 boepd, placing it on course to achieve the upper half of its full-year production guidance.
He described the Aku-01 discovery as evidence of the quality of Nigeria’s subsurface and the potential within Seplat’s exploration portfolio.
On gas development, Seplat reported that commercial gas sales from ANOH through the OB3 pipeline began on September 1. The project averaged gross output of 164 million standard cubic feet per day during the third quarter and was operating at between 70 and 80 per cent of capacity.
The company also said restoration work on the Yoho production platform had been technically completed, but the restart was delayed after a leak was identified in the 14-inch pipeline connecting the platform to the floating storage and offloading vessel. Production was expected to resume in the fourth quarter.
Also, Seplat reduced its 2026 capital expenditure guidance to between $280 million and $340 million from the earlier range of $360 million to $440 million, mainly because of delays to the offshore drilling programme.
According to the nine-month 2026 results released to the Nigerian Stock Exchange (NGX) and London Stock Exchange (LSE), Seplat also generated $749 million in free cash flow during the period, while operating cash flow rose 6 per cent to $1.479 billion.
The company also recorded its first commercial gas sales from the Assa North-Ohaji South (ANOH) gas project through the Obiafu-Obrikom-Oben (OB3) pipeline in September. The development marked a significant step in bringing the project into commercial operation, with principal repayments on ANOH financing also having commenced.
Seplat said restoration work on idle offshore wells added gross joint-venture capacity of 33,700 barrels of oil per day and 176 million standard cubic feet of gas per day from 41 wells, including four gas wells. The restoration of the Yoho project, it stressed, was completed, although start-up was delayed by pipeline damage, with commencement expected in the fourth quarter.
The company said it also expects to complete the sale of a 10 per cent interest in the NNPCL-Seplat joint venture to NNPC Limited in the fourth quarter, a transaction expected to trigger a dividend payment of $140 million, or approximately 23.3 cents per share.
The company’s emissions intensity fell 14 per cent to 37.4 kilogrammes of carbon dioxide equivalent per barrel of oil equivalent, from 43.6 kg, with onshore emissions intensity declining 34 per cent following progress on ending routine gas flaring.
Commenting on the results, the Chief Executive Officer, Effiong Okon, said the company had delivered another quarter of robust production growth, putting it on course to achieve the upper half of its full-year production guidance.
“In my first update as CEO, I am delighted to report another quarter of robust production growth, averaging over 155 kboepd in 3Q 2026, which puts us firmly on track to meet the upper half of our full year guidance,” he said.
Okon attributed the performance partly to strong crude oil prices, noting that the company’s third-quarter realised price of $100.4 per barrel exceeded the average Brent price by $10.2.
He said Seplat’s onshore business achieved record gas production levels during the quarter, supported by the continued ramp-up of the Assa North-Ohaji South (ANOH) gas project and strong performance across its Western assets.
Okon said the company was making progress on integration and implementing initiatives to improve operational capabilities, adding that its workforce, portfolio of growth opportunities and stronger balance sheet provided a foundation for its next phase of expansion.
Seplat operates 11 petroleum mining leases, 17 petroleum prospecting licences and five oil mining leases across onshore and shallow-water locations in the Niger Delta.
“As I take on the responsibilities of leading Seplat into its next phase of growth, based on my engagements in the first three months on the job, I am inspired by the quality of our people, excited with the depth of portfolio growth opportunities and encouraged by the strength of our balance sheet.
“We are making significant progress on integration, and multiple initiatives are underway to further enhance our operational capabilities. With these foundations in place, I believe that we are well positioned to deliver substantial growth, further reinforcing our position as a leading energy provider in Nigeria, a region of increasing strategic importance to global energy markets,” Okon stated.