Seplat Energy Plc is targeting another exploration well in 2027 after recording a successful oil and gas discovery at its Aku-01 exploration well in Petroleum Prospecting Licence (PPL) 2A25.
The discovery, which covered five reservoir intervals, has reduced geological uncertainties across four prospects within the licence area, providing the company with a clearer understanding of its exploration potential.
Seplat said one of the identified prospects would undergo further exploration, with a second well scheduled for drilling in 2027.
The company made this known in its unaudited nine-month financial results for the period ended September 30, 2026, describing the Aku-01 outcome as evidence of the strength of its exploration portfolio and the potential of Nigeria’s hydrocarbon resources.
In its statement, Seplat announced the “discovery of oil and gas across five reservoir intervals in the Aku-01 exploration well, in PPL 2A25,” adding that the “discovery de-risks four prospects on the licence, one of which will be tested in a second exploration well that is now being planned for 2027.”
Commenting on the development, the company’s Chief Executive Officer, Effiong Okon, described the discovery as an important milestone, highlighting the opportunities within Seplat’s exploration portfolio.
“I’m pleased to announce exploration success at Aku-01, a strong reminder of our rich portfolio of prospects and the quality of the subsurface in Nigeria,” he stated.
Beyond the exploration breakthrough, Seplat recorded improved operational performance during the nine-month period, with working interest production averaging 144,999 barrels of oil equivalent per day (boepd), representing a seven per cent increase from the 135,636 boepd achieved in the corresponding period of 2025.
Onshore production increased by 22 per cent, while average production in the third quarter stood at 155,801 boepd, a 13 per cent improvement on the 137,888 boepd recorded in the same quarter of the previous year.
The company attributed part of its production growth to its offshore idle well restoration programme, which added 33,700 barrels of oil per day and 176 million standard cubic feet of gas per day in gross joint venture production capacity.
According to Seplat, a total of 41 wells had been restored year-to-date, including four gas wells, as part of efforts to improve production capacity and optimise existing assets.
The company also reported progress in its gas development operations, disclosing that the first commercial gas was sold through the OB3 pipeline in September. This followed the commencement of initial debt principal repayments on the Assa North-Ohaji South gas project during the third quarter.
Financially, Seplat recorded significant growth across key performance indicators, with revenue increasing by 27 per cent to $2.764bn from $2.177bn in the corresponding period of 2025.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 38 per cent to $1.53bn, compared with $1.112bn in the previous year, while net income surged by 174 per cent to $260.2m.
Similarly, earnings per share climbed by 172 per cent to 42 US cents from 16 US cents recorded in the corresponding period of 2025.
Cash generated from operations stood at $1.479bn, against $1.395bn in the same period last year, reflecting improved earnings and sustained cash generation.
Seplat also strengthened its balance sheet, reducing net debt to $234.9m at the end of September, representing a 65 per cent decline from $673.3m recorded at the end of December 2025.
Its net debt-to-EBITDA ratio improved to 0.14 times from 0.53 times at the end of 2025, while cash held in the bank increased to $556.9m from $332.3m at the close of the previous financial year.
In a further step towards reducing its financial obligations, the company disclosed that it repaid the outstanding $100m balance on its Acquisition Payment Facility on October 27. The repayment completed the settlement of all debt raised to finance its acquisition of Mobil Producing Nigeria Unlimited in 2024.
Shareholders are also expected to benefit from improved returns, following the declaration of a third-quarter dividend of 19 US cents per share. The dividend comprises a core payment of five US cents and a special dividend of 14 US cents.
The payout represents a 58 per cent increase from the previous quarter, bringing cumulative dividends declared for the year to 40 US cents per share.
Despite the adjustments to some of its operational targets, Seplat maintained its full-year 2026 dividend guidance of $270m, equivalent to 45 US cents per share.
The company also retained its production guidance at the upper end of its revised range of 145,000 to 155,000 boepd, compared with its earlier projection of 135,000 to 155,000 barrels per day.
However, it reduced its capital expenditure guidance to between $280m and $340m from the previous estimate of $360m to $440m. The adjustment was attributed largely to changes in project schedules following the late arrival of the offshore rig.
Conversely, its unit operating cost guidance increased to between $15.5 and $16.5 per barrel of oil equivalent, from $14.5 to $15.5, reflecting additional costs associated with the Yoho project.
Seplat explained that although the Yoho restoration project was completed during the third quarter, the planned start-up was delayed after pipeline damage was identified during the period. Production was expected to resume in the fourth quarter of 2026.
On environmental performance, the company reported a 14 per cent reduction in group carbon emissions intensity, which fell to 37.4 kilogrammes of carbon dioxide per barrel of oil equivalent from 43.6 kilogrammes recorded in the corresponding period of 2025.
The latest results highlight Seplat’s progress in expanding its exploration activities, improving production, strengthening its financial position and advancing its gas development projects.