Page 17 - AfrOil Week 31 2021

AfrOil NEWS IN BRIEF AfrOil

Financial: Revenue up 32% to $308.8mn.
EBITDA of $178.9mn. Cash generated from
operations $125.8mn. Cash at bank $298.8mn,
net debt of $456.4mn. Successful issue of
$650mn 7.75% senior notes to redeem existing
$350mn 9.25% senior notes and repay $250mn
drawn on $350mn RCF. Refinanced $100mn
Westport RBL facility; raised a $50mn offtake
linked to the RBL in July. Total capital expend-
iture of $57.5mn.
Corporate Actions: Interim dividend of
$0.025 per share in line with Seplat’s quarterly
dividend distribution timetable. Damian Dodo, “We have significant cash resources and will Hunt, Genel and ConocoPhillips.
SAN, and Lord Mark Malloch-Brown, both continue to manage our finances prudently in Simon Oddie, CEO of Europa, said: “We are
Independent Non-Executive Directors retired 2021, expecting to invest more than $180mn delighted to announce the launch of the Far-
from the Board; replaced by Fabian Ajogwu and of capital expenditure across the full year, with mout initiative of the Inezgane Licence, which
Bello Rabiu effective July 9, 2021. $57mn already invested. We remain confident represents not only a high-impact exploration
Corporate updates: Name changed to Seplat that our ongoing cost-cutting initiatives and opportunity for Europa but also sits comfort-
Energy Plc to reflect evolving strategy. ANOH prudent management of cash will enable further ably within the Company’s strategy of creating
project now fully funded following successful reductions in debt, whilst supporting dividend a balanced portfolio of complementary assets.
$260mn debt issue. payments and investment for growth. Morocco is a welcoming jurisdiction in which
Outlook: Expected production unchanged “Following its successful funding, the com- to operate and has excellent ESG credentials
at 48,000-55,000 boepd for full year, subject to pletion of the ANOH project remains a major in the fields of wind, solar and hydroelectric,
market conditions. Capex now expected to be priority, and we expect this to be achieved in with ambitions to source 50% of its electrical
$180mn for the full year. ANOH project remains H1-2022, at lower cost than originally estimated energy from renewable sources by 2030 as well
on track for H1-2022 first gas. Some 4.0mn bar- at FID.” as becoming a net exporter to Europe.
rels hedged at $35-$50 per for H2-2021. Seplat Petroleum, July 29 2021 “In holding a 75% interest in, and operator-
Roger Brown, CEO, said: “Seplat continues to ship of, the Licence, Europa controls an area of
deliver a robust performance despite the ongoing 11,228 square km, with Morocco’s ONHYM
pandemic. Our second-quarter volumes were INVESTMENT holding the remaining 25% interest. The work
significantly higher that the first three months, completed thus far has focused on the top
and we remain confident of a good outcome to Europa Oil & Gas farming five ranked prospects, which each have mean
the year as we drive improvements across our resources in excess of 200mn boe at the Albian
operations. out Inezgane Licence level, with total mean resources in excess of 2bn
“The strength of our balance sheet was barrels. These are extremely positive numbers
demonstrated in March, when we were able to in Morocco for the Company, and we hope to capitalise on
refinance at considerably lower cost through the prospectivity demonstrated along this pro-
the issue of $650mn senior notes. We have since Europa Oil & Gas has announced the formal lific geological trend. I look forward to providing
committed to quarterly dividend payments pro- launch of the farmout initiative of its high-im- further information in due course.”
viding more frequent returns to shareholders. pact exploration opportunity, the Inezgane Off- Further information on Inezgane: Europa
For the second quarter, we have declared a divi- shore Permit, offshore Morocco in the Agadir was awarded the Inezgane Offshore Permit in
dend of $0.025 per share. Basin, awarded to the Company in 2019. November 2019, which lies offshore Morocco in
“In May, we announced a change of name Overview: The Inezgane Farmout campaign the Agadir Basin in water depths mostly below
to Seplat Energy, reflecting our belief that we has now been launched. Inezgane represents a 2,000 metres. Europa has access to 6,200 square
must diversify our business so we can offer the high-impact exploration opportunity in a highly km of high-quality 3-D seismic data to evaluate
optimal mix of energy for Nigeria’s future needs. underexplored area of the world, representing the prospectivity of the Licence. So far, Europa’s
Having established ourselves as one of Nigeria’s an excellent farm-in opportunity for interested work has focused on the top five ranked pros-
most successful indigenous independent oil and companies and complements Europa’s existing pects – namely, Alpha, Charlie, Falcon, Turtle
gas companies, we will now build on that strong strategy of seeking to develop a balanced port- and Sandpiper; these prospects have a wide
base and accelerate our domestic gas business, folio of assets. range of structural styles, including four-way
expanding along the gas value chain into LPG The Licence is located on the same geolog- dip, salt flank and salt under-hang. Each has
and CNG. As part of Nigeria’s energy transition, ical trend which has led to major oil and gas stacked potential at the Albian, Campanian and
we will selectively target opportunities in gas discoveries along the west coast of Africa with Barremian levels, all within the Cretaceous sec-
to power and solar energy, critical to provid- reservoirs and source rocks in common with tion, and all five prospects have mean resources
ing an alternate to expensive diesel-generated the prolific West African play. Europa’s recent in excess of 200mn boe at the Albian level, which
electricity. evaluation has identified a significant volume remains the primary target.
“For 2021 we expect to produce an average of Licence resource, in excess of 2bn barrels of The total mean resource is in excess of 2bn
of 48,000-55,000 boepd, taking into account the oil equivalent), in the top five ranked prospects boe at the Albian level, with significant addi-
impact of OPEC+ quotas. We continue to hedge alone. tional reserves potential at the Campanian and
against oil price volatility and expect a higher Morocco offers excellent fiscal terms with a Barremian levels, which represent secondary
proportion of revenues to come from long-term low tax take and several major and midcap com- and tertiary targets.
gas contracts at stable prices. panies hold acreage in Morocco, including Eni, Europa Oil & Gas, August 3 2021

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