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SEPLAT Confirms 20-Year License Renewal for OMLs 4, 38 and 41; Gets Presidential Approval

Stock & Analyst Updates	3717 VIEWS
Stock & Analyst Updates
3717 VIEWS

Thursday, November 15, 2018 / 02:40 AM / NSE

Seplat Petroleum Development Company Plc (“Seplat” or the “Company”), a leading Nigerian indigenous oil and gas company listed on both the Nigeria Stock Exchange and London Stock Exchange, today announces that the President and Honourable Minister of Petroleum Resources has given consent for the renewal of OMLs 4, 38 and 41 to a new expiry date of 21 October 2038.

Seplat holds a 45% working interest in OMLs 4, 38 and 41 and in the first nine months of 2018 production from the licenses accounted for 92% of Seplat’s total oil production and 100% of Seplat’s gas production.

In connection with the license renewal Seplat has paid in full a Renewal Bonus of US$25.9 million, thus ensuring all conditions for license renewal have been met. The Company is now working with the Department of Petroleum Resources to obtain the updated title deeds in connection with the renewal.

Commenting on the license renewal Austin Avuru, Seplat’s Chief Executive Officer, said:

“We are delighted to have concluded the early renewal of our core producing licenses, OMLs 4, 38 and 41. With the extension of the license to 2038 secured, we can now invest with confidence long into the future as we seek to further realise the full oil and gas potential of the licenses and continue to deliver value to all of our stakeholders”.