KEY POINTS
- Seplat estimates 157bcf of gas and 19 million barrels of oil in place at Aku-01.
- Nine-month revenue rose to N3.78 trillion, while combined production increased 7%.
- Total 2026 shareholder distributions could reach $410 million if the planned transaction is completed.
Seplat Energy Plc has discovered an estimated 157 billion cubic feet of natural gas and 19 million barrels of oil in place at its Aku-01 exploration well in Nigeria, opening up fresh opportunities for future production.
The indigenous energy company disclosed the discovery in its unaudited financial results for the nine months ended September 30, 2026, released on October 29.
Seplat said the oil discovery was unexpected because the well was originally designed primarily to target natural gas. The company stressed that further evaluation is needed to determine how much of the discovered resources can be commercially recovered.
Seplat plans to develop discovery
The company said work was ongoing to complete the exploration well for potential future production, with plans to connect it to existing infrastructure to accelerate commercial development.
The discovery has also reduced exploration uncertainty across four neighbouring prospects within the licence area. Seplat plans to drill another exploration well in the Aku area in 2027.
Seplat holds a 40% operated interest in Petroleum Prospecting Licence 2A25, where the discovery was made.
Revenue and production increase
The discovery comes as Seplat reports stronger financial and operational performance.
The company recorded a pre-tax profit of N1.34 trillion in the first nine months of 2026, up 52.75% from N878.99 billion in the corresponding period of 2025.
Revenue rose to N3.78 trillion from N3.36 trillion, while profit after tax increased to N355.6 billion from N146.6 billion.
Combined working-interest production averaged 144,999 barrels of oil equivalent per day, a 7% increase from 135,636 barrels per day a year earlier.
Crude oil and condensate production rose 1.4% to 103,173 barrels per day, while natural gas production increased 11.6% to 194.9 million standard cubic feet per day. Natural gas liquids production more than doubled to 8,222 barrels per day.
Shareholders set for higher dividends
Seplat declared a third-quarter dividend of 19 US cents per share, comprising a core dividend of five cents and a special dividend of 14 cents. This brings its cumulative dividend for the first nine months of 2026 to 40 US cents per share.
The company retained its full-year underlying dividend guidance of $270 million, equivalent to 45 US cents per share.
Seplat also plans to distribute approximately $140 million to shareholders following the anticipated completion of the sale of a 10% interest in its NNPCL-SEPNU joint venture to NNPC Limited. If completed as planned, total dividend distributions for 2026 could reach approximately $410 million.
Seplat shares closed unchanged at N16,000.10 on October 28, which the report described as an all-time high. The stock had gained approximately 175% since the start of 2026.
