Despite delivering 101 million standard cubic feet of gas per day for consumption in the first quarter of 2016, Seven Energy has posted a loss after tax of $14 million.
The company’s Chief Executive Officer of the company, Phillip Ihenacho, who revealed this in the first quarter report noted that deliveries of 101 MMcfpd compared to the average of 70 MMcfpd in 2015.
He said: “Our long held focus on gas is reaping benefits, at a time when the upstream component of our business is challenged with a continued weak oil price, and with the Forcados terminal having been closed since February, severely limiting oil production deliveries and cash flow from our assets in the North West Niger Delta.”
The company noted that the 44per cent increase from the 2015 average gas deliveries of 70 MMcfpd was due to the increase in gas taken by the Calabar NIPP and Alaoji NIPP power stations as they increase their electricity generation into the power grid.
The company reported that during April which saw an average of 105 MMcfpd, with daily deliveries reaching in excess of 130 MMcfpd as the demand from our customer base increases, adding that the completion of our Oron to Creek Town pipeline in the coming months will enable us to achieve delivery volumes of 200 MMcfpd within the next twelve months.
It observed that the average gross oil production from the Stubb Creek and Uquo fields was 1,800 bopd for the period (Q1 2015: 1,000 bopd), with net entitlement to Seven Energy of 700 bopd (Q1 2015: 400 bopd), an increase of 66per cent.
The company stated that liftings during the period totalled 106 Mbbls (Q1 2015: nil), realising an average oil price of $33/bbl. It reported further that during the first quarter of 2016 gross production under the Strategic Alliance Agreement between Seven Energy and the Nigerian Petroleum Development Company from OMLs 4, 38 & 41 averaged 31,580 bopd.