Seplat Energy Announces Discovery of 19 Million Barrels of Oil and 157 Billion Cubic Feet of Gas in Imo

By Simpson Global Media News Desk

Report Date: Friday, 30 October 2026
Discovery Announcement: Thursday, 29 October 2026
Discovery Location: Aku-01 exploration well, onshore Imo State, Nigeria
Licence Area: Petroleum Prospecting Licence 2A25, within the OML 53 asset area
Announcement Venue: Company financial-results announcement; specific physical venue not confirmed.

Seplat announces significant oil and gas discovery

Seplat Energy Plc has announced a new oil and gas discovery at its Aku-01 exploration well in Imo State, with preliminary estimates indicating approximately 19 million barrels of oil and 157 billion cubic feet of natural gas in place.

The Nigerian energy company disclosed the discovery on Thursday, 29 October 2026, in its unaudited financial results for the nine months ended 30 September 2026.

The discovery is significant because the exploration well was originally planned to target gas, but also encountered oil across five reservoir intervals.

Seplat said the well was being completed as a potential future production well that could be connected to existing infrastructure, providing an opportunity to bring the discovered resources into production without necessarily requiring an entirely new standalone development.

The company also said the discovery had reduced exploration uncertainty across four neighbouring prospects, one of which it intends to test through another exploration well planned for 2027.

The announcement adds to Nigeria's efforts to increase domestic oil and gas production, attract investment into the upstream petroleum industry and expand the country's energy resources.

What the discovery means

The preliminary estimate of 157 billion cubic feet of gas and 19 million barrels of oil represents hydrocarbons identified in place.

These figures should not be interpreted as confirmed commercially recoverable reserves or as oil and gas already available for sale.

Further technical evaluation, appraisal, development planning and regulatory processes will be needed to establish how much of the discovered resources can be economically produced.

The distinction is important because the quantity of hydrocarbons found underground is not necessarily the same as the quantity that can ultimately be extracted.

Factors such as reservoir quality, pressure, production costs, infrastructure, oil and gas prices and technical conditions will influence the commercial value of the discovery.

Seplat's plan to connect the well to existing infrastructure could nevertheless improve the prospects for early monetisation if subsequent technical and commercial assessments are favourable.

Discovery was not part of the original exploration plan

According to the company, the oil discovery was unexpected because the original Aku-01 exploration programme did not anticipate finding oil alongside the targeted gas resources.

The well encountered hydrocarbons across five reservoir intervals.

The discovery has also provided additional information about the geological potential of the surrounding licence area.

Seplat said four adjacent prospects had been de-risked by the results, creating further opportunities for exploration.

The company intends to test one of those prospects through a second exploration well in the Aku area in 2027.

This next phase could help determine whether the discovery is part of a wider hydrocarbon system with additional commercially viable resources.

Seplat's interest and partnership

Seplat holds a 40 per cent participating interest in the relevant asset area, while NNPC Limited holds the remaining 60 per cent interest through the joint venture arrangement.

The company acquired its interest in OML 53 from Chevron in 2015.

The discovery is therefore relevant not only to Seplat but also to Nigeria's wider upstream petroleum investment landscape.

NNPC Limited's participation gives the national oil company an interest in the development potential of the asset.

Any future production will depend on the partners' technical decisions, investment commitments and applicable regulatory approvals.

Seplat's nine-month financial performance

The discovery was announced alongside strong financial and operational results for the first nine months of 2026.

Seplat reported revenue of approximately ₦3.8 trillion, compared with ₦3.36 trillion in the corresponding period of 2025.

Profit before tax increased by approximately 52.75 per cent to ₦1.34 trillion.

Profit after tax rose to ₦355.6 billion from ₦146.6 billion in the same period of the previous year.

The improvement was supported by stronger production and higher realised oil prices.

In dollar terms, the company's reported revenue reached approximately $2.76 billion, representing growth of 27 per cent from $2.18 billion a year earlier.

Profit after tax increased to $260.2 million from $95.1 million.

The company also reported adjusted earnings before interest, taxes, depreciation and amortisation of approximately $1.53 billion.

Production increases as gas operations expand

Seplat's average working-interest production reached 144,999 barrels of oil equivalent per day during the first nine months of 2026.

This represented a 7 per cent increase from 135,636 barrels of oil equivalent per day in the corresponding period of 2025.

Third-quarter average production rose to 155,801 barrels of oil equivalent per day, a 13 per cent increase compared with the same quarter of the previous year.

Onshore production was particularly important, increasing by 22 per cent during the nine-month period.

The company attributed part of its performance to improved output across its assets and the continued development of its Assa North-Ohaji South gas project.

Natural gas production averaged 194.9 million standard cubic feet per day during the first nine months, compared with 174.7 million standard cubic feet per day in the same period of 2025.

The increase reflects the growing contribution of gas operations to the company's business.

First commercial gas sales through the OB3 pipeline

Another important development in Seplat's results was the commencement of its first commercial gas sales through the Obiafu-Obrikom-Oben pipeline, commonly known as the OB3 pipeline.

The company said its first commercial gas was sold through the pipeline in September 2026.

The development is important because additional gas transportation capacity can improve the ability of producers to supply domestic customers.

Nigeria has significant natural gas resources, but infrastructure limitations have historically affected the movement of gas from producing areas to power plants, industries and other consumers.

The development of transportation and processing infrastructure is therefore essential to expanding domestic gas utilisation.

For Seplat, the growth of gas production and sales could provide an additional revenue stream while supporting Nigeria's broader gas development objectives.

Debt reduction strengthens the company's balance sheet

Seplat also reported progress in reducing its debt following its acquisition of Mobil Producing Nigeria Unlimited, now known as Seplat Energy Producing Nigeria Unlimited.

The company said net debt declined to approximately $234.9 million at the end of September 2026, compared with $673.3 million at the end of 2025.

This represented a reduction of approximately 65 per cent.

The company subsequently repaid the outstanding $100 million balance on its advance payment facility on 27 October, completing repayment of the debt raised to finance the $1.3 billion acquisition.

The improvement in the balance sheet could provide greater financial flexibility for future investment, exploration and operational development.

However, the company will still need to manage capital expenditure carefully as it pursues new opportunities.

What the discovery could mean for Nigeria

Nigeria has been seeking to increase oil production and improve the contribution of natural gas to electricity generation, manufacturing and industrial development.

The Federal Government has set an ambition of raising national oil production to three million barrels per day by 2030.

Seplat's Aku-01 discovery could contribute to the country's long-term resource development objectives if the resources are successfully appraised and commercial production becomes viable.

The potential connection to existing infrastructure is particularly relevant because new oil and gas developments can face substantial costs associated with pipelines, processing facilities, storage and export arrangements.

Where existing infrastructure has sufficient capacity and is technically suitable, connecting a new discovery to established facilities may reduce development requirements and shorten the time needed to begin production.

Nevertheless, the actual cost and timeline for developing Aku-01 have not yet been established publicly.

Implications for investors

The announcement provides investors with another indication of Seplat's exploration potential.

The identification of oil and gas in the same well, together with four neighbouring prospects, creates additional opportunities for the company to expand its resource base.

Its stronger production, higher revenue and lower debt also provide important context for assessing the company's financial position.

However, investors should distinguish between preliminary resource estimates and commercially recoverable reserves.

The eventual value of the discovery will depend on further technical assessments, development costs, production capacity, commodity prices and the regulatory environment.

The discovery does not automatically translate into an immediate increase in company revenue or national oil production.

What happens next?

Seplat is working to complete Aku-01 as a potential future production well.

The company has indicated that it intends to connect the well to existing infrastructure to support early monetisation, subject to technical and commercial requirements.

It is also planning another exploration well in 2027 to test one of the four neighbouring prospects.

The next stages will involve further evaluation of the reservoirs, development planning and decisions on the commercial recovery of the discovered resources.

The company and its joint-venture partner will also need to work within the relevant regulatory framework governing petroleum operations in Nigeria.

Outlook

The Aku-01 discovery adds a new opportunity to Nigeria's onshore oil and gas development landscape.

With preliminary estimates of 19 million barrels of oil and 157 billion cubic feet of gas, the find could strengthen Seplat's exploration portfolio and provide additional opportunities for domestic production.

The company's stronger nine-month financial performance, rising output and debt reduction provide a favourable operational backdrop for pursuing further exploration.

However, the discovery's long-term economic contribution will depend on how much of the identified hydrocarbons can be commercially recovered and how quickly the company can develop the resources.

For Nigeria, the development reinforces the importance of sustained exploration investment, reliable infrastructure, effective regulation and partnerships capable of converting underground resources into productive economic activity.