Seven Energy full year results 2015

Seven Energy Finance Limited, together with its parent company Seven Energy International Limited (“Seven Energy” or the “Group”), the leading integrated gas company in south east Nigeria, with upstream oil and gas interests in the region, today announces its results for the year ended 31 December 2015.

    Highlights for the year ended 31 December 2015
  1. Total gas deliveries from the south east Niger Delta gas business trebled to an average of 70 million standard cubic feet per day (“MMcfpd”) (2014: 23 MMcfpd)
  1. Seven Energy’s net oil entitlement averaged 11,300 bopd (2014: 15,800 bopd)
  1. Average realised oil price of $48/bbl (2014: $94/bbl)
  1. EBITDAX for the year down 77% to $62 million (2014: $273 million)
  1. South east Niger Delta business segment EBITDAX of $45 million (2014: $28 million loss), reflecting the growth in the contribution from the gas business
  1. Loss after tax of $182 million (2014: $55 million profit); which includes a one-off $90 million impairment charge on OMLs 4, 38 & 41 assets
  1. Total capital expenditure down 74% in 2015 to $238 million (2014: $912 million)
  1. Operating cash flow increased by 52% to $215 million in 2015 (2014: $141 million)
  1. 9% year on year increase in 2P plus 2C net reserves and resources to 452 MMboe (2014: 414 MMboe)
  1. Successful $100 million equity raise post year end further demonstrates support for Seven Energy’s gas focussed business model

Phillip Ihenacho, Chief Executive Officer, Seven Energy, commenting on the results said:

“Seven Energy is now well established as a significant participant in the rapidly developing Nigerian gas market, despite the current challenging environment. Our gas deliveries more than trebled during the course of 2015 and, although oil prices fell significantly, our operating cash flow increased by more than 50%. We continue to work to diversify and build our customer base and we are targeting a year end exit rate in excess of 150 MMcfpd.
“I would like to take this opportunity to thank Andrew Jamieson, Clare Spottiswoode and Fidelis Oditah, who are stepping down from the board at the AGM, for their valuable contribution to the success of Seven Energy; and to welcome Matthew Harwood and Stephen Vineburg who have joined the board.”

Source: Seven Energy
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