27 JULY 2017 2017 HALF-YEARLY RESULTS 1 2017 HALF YEARLY RESULTS
IMPORTANT NOTICE DISCLAIMER FORWARD-LOOKING STATEMENTS This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Company's control and all of which are based on the Company’s current beliefs and expectations about future events. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's business, results of operations, financial position, liquidity, prospects, growth, strategies and the oil and gas business. Forward-looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required. No part of these results constitutes, or shall be taken to constitute, an invitation or inducement to invest in the Company and must not be relied upon in any way in connection with any investment decision. 2 2017 HALF YEARLY RESULTS
Introduction & activity update Austin Avuru – CEO 3 2017 HALF YEARLY RESULTS
HIGHLIGHTS AND OUTLOOK PROACTIVE MANAGEMENT IN DIFFICULT CONDITIONS HAS STABILISED THE PLATFORM FOR LONG TERM GROWTH PROTECTED THE CORE …NOW TRANSITIONING …WITH FUTURE GROWTH BUSINESS IN DIFFICULT BACK INTO “BUILD AND OPPORTUNITIES TO CONDITIONS … GROW” MODE… TRANSFORM Upgraded Warri refinery alternative Design work programme to drill out Nigeria remains the most prolific oil export route to 30,000 bopd gross highest cash return production and gas opportunity set in SSA capacity opportunities Leverage Seplat’s unique position and Grown the gas business (H1 revenues Access to the Amukpe-Escravos strong track record to access new US$54 million, up +15% y-o-y) pipeline will significantly de-risk production and development assets in distribution of oil production to market the Niger Delta Continued to de-leverage and successfully extended RCF Optimise capital structure and retire Become the largest supplier of legacy receivables processed natural gas to the domestic Diligently preserved liquidity buffer market Deliver ANOH gas and condensate Kept downward pressure on cost base development to drive next phase of Position Seplat as the leading (G&A down 27% year-on-year) gas business growth indigenous Independent E&P Return to profitability and FCF +’ve FORCE MAJEURE LIFTED IN JUNE Reinstate dividend at earliest AND FULL PRODUCTION RESUMED opportunity BUSINESS UNDERPINNED BY STRONG OIL AND GAS FUNDAMENTALS 4 2017 HALF YEARLY RESULTS
WORKING INTEREST PRODUCTION – GUIDANCE RESUMED UNDERPINNED BY A STRONG PLATFORM OF PRODUCING FIELDS • Average working interest production in H1 2017 boped +3% year-on-year at 26,383 boepd (H1 2016: 50,000 25,695 boepd) H2 guidance range - Liquids production of 9,507 bopd driven by force majeure 43- 50 kboepd conditions 43,372 - Gas production up +19% year-on-year at 101 MMscfd even despite condensate handling constraints during force majeure (H1 40,000 FY guidance range 2016: 85 MMscfd) 35 – 38 kboepd • Force majeure lifted at Forcados terminal on 14,369 18 – 21 kboepd 6 June 2017 30,823 - Production at OMLs 4,38 and 41 quickly restored to pre force 18 – 19 30,000 28,341 kboepd majeure levels 26,383 6,571 25,877 • Working interest production guidance reinstated (1) 4,867 - Predicated on no major force majeure event in H2 and uptime 25 -29 range of 75% to 85% 20,020 kbopd 20,000 15,786 16,876 5,226 H2 working interest production guidance Oil 25 – 29 kbopd 29,003 17 -19 kbopd Gas 110 - 130 MMscfd 24,252 23,474 Total 43 - 50 kboepd 10,000 14,794 FY working interest production guidance Oil 17 – 19 kbopd 10,091 9,507 Gas 105 - 115 MMscfd Total 35 – 38 kboepd 0 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 H1 2017 H2 2017E FY 2017E (1) Before reconciliation losses, volumes measured at the LACT unit 5 2017 HALF YEARLY RESULTS
ACTIVITY UPDATE PRIORITISING THE DIVERSIFICATION OF CRUDE EXPORT ROUTES TO MITIGATE CONCENTRATION RISK IN THE FUTURE OML’s 4, 38, 41 Amukpe to Escravos OPL 283 • Commenced workover of the Orogho-7 production well export pipeline • Planning the Anagba-1 • Upgrades to liquid treatment facility will allow injection of • Completion of 160,000 bopd appraisal well with partner export grade crude into available export routes Pillar Oil pipeline government priority • Planning forward work programme to drill out highest cash • Well intended to appraise • Seplat has agreed joint return near term production opportunities reservoirs in production on operating model with pipeline adjacent block and secure owners reserves • MOU signed with pipeline operator Pan Ocean (and approved by NAPIMS) to work in partnership on completion OML 53 of pipeline, negotiation with • Targeting short-term oil Escravos terminal operator (Chevron) and operation and production gains maintenance of the pipeline • Re-entry and completion of • Anticipated to be fully two Ohaji Soouth oil wells and operational in Q1 2018 infill drilling at Jisike • Number of unappraised discoveries under evaluation • Significant gas potential across Forcados terminal wider block (beyond ANOH) • Force majeure lifted on 6 June • Production at OMLs 4,38,41 rapidly restored to pre force Warri refinery export route OML 55 majeure levels • Export route has remained • Completed repair and upgrade of two jetties • Received payment of US$22.6 open with normal levels of as planned million from lifting in Q2 maintenance and upkeep • The upgraded jetties will enable sustained • Seplat continues to perform its exports of 30,000 bopd (gross) if required in specified role within the Asset the future Management Team • Intend to keep route open for the foreseeable future 6 6 2017 HALF YEARLY RESULTS 2017 HALF YEARLY RESULTS
SCALING UP OUR GAS BUSINESS TOTAL OPERATED PROCESSING CAPACITY AT ANOH COMPLETION WILL BE CAPABLE OF SUPPORTING ~3,000MW POWER GENERATION OMLs 4, 38, 41 855 Bscf net 2P+2C 525 MMscfd processing capacity Oben Hub (comprising 465 MMscfd at Oben • Strategically positioned and 60 MMscfd at Sapele) to access Nigeria’s main demand centres • Barging ensures constant gas production Pillar (OPL 283) and supply to the OB3 gas pipeline under construction 72 Bscf net 2P+2C domestic market 120Km & 48” diameter pipeline Completion scheduled in 2017 • Finalising new GSA’s to take up additional volumes and underpin ramp up to 400 MMscfd (gross) • Additional processing OML 53 (ANOH Project) capacity of 125 MMscfd 838 Bscf net 2P+2C for gas expansion and/or FID targeted in 2017 3rd party processing (upstream & midstream) Anoh Hub (Planned) • Takes large scale gas reserves in the Eastern Delta into Nigeria’s main demand centres via Oben • Phase I to comprise Seplat operated 300 MMscfd gas processing plant on OML 53 • Leverage experience gained at Oben to derive repeatability gains and optimal configuration • FID targeted in 2017 7 7 2017 HALF YEARLY RESULTS 2017 HALF YEARLY RESULTS
Finance update Roger Brown - CFO 8 2017 HALF YEARLY RESULTS
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