Seplat Energy Plc has announced an oil and gas discovery at its Aku-01 exploration well in Nigeria, with preliminary estimates indicating 157 billion cubic feet of gas and 19 million barrels of oil in place, as the energy company reported a 174% increase in profit for the first nine months of 2026.
The discovery, located in Petroleum Prospecting Licence (PPL) 2A25, was disclosed in Seplat’s unaudited financial results released today, October 29, 2026, for the nine months ended September 30.
According to the company, the well encountered hydrocarbons across five reservoir intervals. The oil discovery was unexpected because the original exploration programme focused on natural gas.
Seplat said the discovery had reduced exploration uncertainty across four neighbouring prospects within the licence area. The company is planning a second exploration well in the Aku area in 2027 to test one of the prospects.
Work is also underway to complete the Aku-01 well for potential future production, with plans to connect it to existing infrastructure to support early commercial development.
Seplat holds a 40% operated interest in PPL 2A25.
However, the estimated 157 billion cubic feet of gas and 19 million barrels of oil represent hydrocarbons in place, rather than confirmed commercially recoverable reserves. Further technical evaluation will be required to establish the quantities that can be economically produced.
The discovery adds to Seplat’s exploration prospects as the company expands its oil and gas production and advances projects aimed at increasing gas supply.
Financially, Seplat recorded revenue of $2.764 billion in the nine months to September 2026, up 27% from $2.177 billion in the corresponding period of 2025.
Profit after tax rose to $260.2 million from $95.1 million, representing a 174% increase year-on-year. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 38% to $1.53 billion from $1.11 billion.
The company generated $749 million in free cash flow during the period, while net debt fell to $234.9 million at the end of September from $673.3 million at the end of 2025.
Seplat’s average working-interest production increased by seven per cent to 144,999 barrels of oil equivalent per day (boepd), compared with 135,636 boepd in the same period last year.
Production in the third quarter averaged 155,801 boepd, representing a 13% increase from the corresponding quarter of 2025. Onshore production rose by 22% during the nine-month period.
The company also reported progress at its 300 million standard cubic feet per day ANOH gas processing plant. Seplat said the project recorded its first commercial gas sales through the Oben–Obiafu–Obrikom–Oben (OB3) pipeline in September, while initial principal repayments on the project’s debt were completed in the third quarter.
The company’s idle-well restoration programme also added 33,700 barrels of oil per day and 176 million standard cubic feet of gas per day in gross joint-venture production capacity from 41 wells during the year to date.
Seplat narrowed its full-year 2026 production guidance to 145,000–155,000 boepd, reflecting its performance so far this year. It also reduced its capital expenditure guidance to between $280 million and $340 million.
The company declared a third-quarter dividend of 19 US cents per share, comprising a five-cent core dividend and a 14-cent special dividend. This represented a 58% increase from the preceding quarter.
Total dividends declared for the year to date reached 40 US cents per share, while the company retained its full-year dividend guidance of 45 US cents per share.
Seplat’s latest results reflect stronger production, higher realised oil prices and improved profitability, while the Aku-01 discovery provides an additional exploration opportunity that could support its future oil and gas development.
