Saturday , 17 March 2018

Seven Energy boosts oil, gas output

A major producer, Seven Energy has supplied commercial oil and gas to the market.
The company supplied 70 million standard cubic feet of gas per day and 11,300 barrels per day of crude oil in 2015.
 “South East Niger Delta business segment EBITDAX of $45 million (2014: $28 million loss), reflecting the growth in the contribution from the gas business. Loss after tax of $182 million (2014: $55 million profit); which includes a one-off $90 million impairment charge on OMLs 4, 38 & 41 assets. Total capital expenditure down 74per cent in 2015 to $238 million (2014: $912 million).
“Operating cash flow increased by 52per cent to $215 million in 2015 (2014: $141 million).  9per cent year on year increase in 2P plus 2C net reserves and resources to 452 MMboe (2014: 414 MMboe). Successful $100 million equity raise post year end further demonstrates support for Seven Energy’s gas focused business model.”
The Chief Executive Officer of the company, Mr. Phillip Ihenacho, said: “Seven Energy is now well established as a significant participant in the rapidly developing Nigerian gas market, despite the current challenging environment.
Our gas deliveries more than trebled during the course of 2015 and, although oil prices fell significantly, our operating cash flow increased by more than 50per cent. We continue to work to diversify and build our customer base and we are targeting a year end exit rate in excess of 150 MMcfpd.
“I would like to take this opportunity to thank Andrew Jamieson, Clare Spottiswoode and Fidelis Oditah, who are stepping down from the board at the AGM, for their valuable contribution to the success of Seven Energy; and to welcome Matthew Harwood and Stephen Vineburg who have joined the board, he added.
The company maintained that the fourth quarter saw a strong performance on gas deliveries, with December reaching the year’s highest monthly average of 114 MMcfpd, delivering to five customers.
It pointed out that the build-up in demand from these five customers during the course of the year led to gas sales increasing threefold compared to the prior year (2014: 23 MMcfpd).
The company said construction of the Oron to Creek Town pipeline continues to progress well and remains on schedule for completion in mid-2016.
It disclosed that the construction of this gas pipeline, coupled with the Federal Government’s development work on the electricity transmission lines and sub-stations in the region, will be the catalyst for the next significant ramp up in our gas supply to fully utilise our processing capacity of 200 MMcfpd.
The company noted that oil production from the Stubb Creek and Uquo fields demonstrated a good first year’s performance with average gross production of 2,200 bopd, with net entitlement to Seven Energy of 800 bopd.
It disclosed that the company drilled the North East-1 prospect on the Uquo field, achieving exploration success with commercial discoveries of both oil and gas.





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