Seplat Announce Results For the year ended 31 December 2017

Full year 2017 results highlights 2017 working interest production within guidance ● Full year working interest production of 36,923 boepd (comprising 17,853 bopd liquids and 114 MMscfd gas) within guidance range of 35,000 – 38,000 boepd ● Working interest production post lifting of force majeure on 6 June 2017 to year end was 47,522 boepd (comprising 26,527 bopd liquids and 126 MMscfd gas) ● Amukpe to Escravos alternate export pipeline anticipated to be fully commissioned and operational in Q3 2018; access to three separate export routes at our western assets and two at our eastern assets providing adequate redundant capacity will significantly de-risk distribution of oil production to market Return to full year profitability and strong cash flow generation ● Full year revenue US$452 million; operating profit US$112 million and profit before current year tax and deferred tax adjustments US$44 million ● Net Deferred tax credits of US$221 million increases the overall profit after tax to US$265 million. The Group recognises deferred tax assets on unused tax losses and capital allowances where it is probable that future taxable profits will be available for utilisation ● Q3 and Q4 profit after tax of US$24 million and US$46 million (before deferred tax credits) respectively reversed mid-year loss of US$26 million ● Cash flow from operations US$447 million against capital expenditures of US$33 million Strengthened balance sheet ● Cash at bank US$437 million and net debt US$141 million at end 2017 compared to US$160 million and US$516 million at end 2016 ● Successfully concluded over-subscribed one-year extension of revolving credit facility ● Despite the challenging operating conditions aggregate indebtedness reduced to US$578million at end 2017. A reduction of US$422 million from US$1 billion peak in Q1 2015 Record contribution from the gas business ● 2017 gas revenue US$124 million and accounts for 27% of total revenue ● Moving towards FID at large scale ANOH project in alignment with partners

    Commenting on the results Austin Avuru, Seplat’s Chief Executive Officer, said
“I am pleased to report that Seplat made a return to full-year profitability in 2017, registered strong cash flow performance and significantly strengthened the balance sheet. In a year of contrast we were plagued throughout most of the first half by force majeure at the Forcados terminal. However, following the lifting of force majeure on 6 June we rapidly restored full production operations and our subsequent operational and financial performance is a clear indicator of our strong fundamentals and what we can achieve when we have unhindered access to market. We will retain the flexibility and financial discipline that has seen us emerge from a difficult chapter in our history a fitter and stronger business. With line of sight on the availability of multiple export routes, we aim to significantly de-risk distribution of oil production to market. Notably, our gas business made another record contribution in 2017 and continues to demonstrate the robustness of its revenues providing a key source of growth and diversification, as well as delivering a much-needed reliable supply of gas to the Nigerian power sector. Seplat is now better positioned to return to sustainable growth.”
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