Seplat Energy Plc, a leading indigenous energy company in Nigeria, has announced a significant discovery of oil and gas at its Aku-01 exploration well. The company revealed that preliminary internal estimates indicate a mid-case gas resource of 157 billion cubic feet and an oil resource of 19 million barrels in place. This unexpected oil discovery was made after the end of September 2026, and it is seen as a positive development for the company's future revenue and hydrocarbon production.
The Aku-01 exploration well was primarily designed to target natural gas, but the discovery of oil is considered encouraging. Seplat stated that further evaluation would be required to establish the commercially recoverable volumes from the discovery. The company is currently working to complete the exploration well for potential future production, with plans to connect it to existing infrastructure to accelerate the commercial development of the resources.
The discovery at Aku-01 has reduced exploration uncertainty across four neighbouring prospects within the licence area, paving the way for another exploration well in the Aku area in 2027. Seplat holds a 40 per cent operated interest in Petroleum Prospecting Licence (PPL) 2A25, where the discovery was made. This development is expected to contribute to increased hydrocarbon production and future revenue for the company.
Seplat Energy's financial performance has improved significantly, with a pre-tax profit of N1.34 trillion during the nine-month period, representing a 52.75 per cent increase from N878.99 billion recorded in the corresponding period of 2025. The company's revenue rose to N3.78 trillion from N3.36 trillion, while profit after tax increased to N355.6 billion from N146.6 billion in the preceding year.
The company's operational performance also shows improvement, with average daily working-interest crude oil and condensate production increasing by 1.4 per cent to 103,173 barrels per day (bopd) in the first nine months of 2026. Natural gas production averaged 194.9 million standard cubic feet per day (MMscfd), representing an 11.6 per cent increase from 174.7 MMscfd recorded in the corresponding period of 2025.
Seplat's combined working-interest production averaged 144,999 barrels of oil equivalent per day (boepd), representing a seven per cent increase from 135,636 boepd in the corresponding period of 2025. The company 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. The declaration brings the company's cumulative dividends for the first nine months of 2026 to 40 US cents per share.
Seplat Energy's shares closed unchanged at N16,000.10 on October 28, 2026, its all-time high, with 57,476 shares traded against 9,884 shares in the previous trading session. The stock has appreciated by approximately 175 per cent year-to-date from its opening price of N5,809. The company plans to distribute approximately $140 million to shareholders following the anticipated completion of the sale of a 10 per cent interest in its NNPCL-SEPNU joint venture to NNPC Limited.
Key points
- Seplat Energy discovers 157 billion cubic feet of natural gas and 19 million barrels of oil at Aku-01 well.
- The discovery is expected to contribute to increased hydrocarbon production and future revenue for the company.
- Seplat's financial performance improves with a 52.75 per cent increase in pre-tax profit.
