Reported by Weng Patrick Atokor l Journalist at Weng Global
Seplat Energy Plc has announced plans to drill a second exploration well in 2027 following an oil and gas discovery at its Aku-01 exploration well in Nigeria, strengthening the company’s prospects for expanding hydrocarbon production and unlocking additional resources.
The discovery, made in Petroleum Prospecting Licence (PPL) 2A25, identified oil and gas across five reservoir intervals. Seplat said the successful exploration had also reduced geological uncertainty across four neighbouring prospects, one of which is expected to be tested through another exploration well next year.
The development represents a significant step in the company’s onshore exploration programme and could create additional opportunities for Nigeria’s oil and gas industry, particularly as the country seeks to increase domestic production and attract investment into its upstream petroleum sector.
According to Seplat’s unaudited nine-month financial results released in October 2026, the second exploration well is being planned as part of the company’s next phase of activities in the Aku area.
Seplat identifies additional exploration opportunities
The Aku-01 discovery has provided Seplat with further insight into the hydrocarbon potential of its exploration acreage in Nigeria.
The company disclosed that oil and gas were discovered across five reservoir intervals, demonstrating the presence of multiple hydrocarbon-bearing formations within the exploration area.
Beyond the initial discovery, the results have helped reduce exploration uncertainty across four adjacent prospects.
In oil and gas exploration, de-risking refers to the process of reducing uncertainty about whether a geological formation contains hydrocarbons and whether it has the potential to support further exploration and development.
This is important because successful exploration can provide geological information that improves the assessment of nearby prospects, helping companies make more informed decisions about where to invest in additional drilling.
Seplat plans to use the information obtained from Aku-01 to advance exploration activities, with one of the four identified prospects selected for testing through a second well in 2027.
The company has not indicated that all four prospects will be developed, as further exploration and technical assessments will be required.
Discovery estimated at 157 billion cubic feet of gas and 19 million barrels of oil
Further details contained in Seplat’s financial disclosures indicate that the Aku-01 discovery could contain substantial volumes of oil and natural gas.
Preliminary internal estimates put the mid-case gas-in-place resource at approximately 157 billion cubic feet (Bcf), while the estimated oil-in-place resource stands at approximately 19 million barrels.
An important detail is that the oil discovery was not part of the original well plan, making the identification of oil alongside gas an additional exploration outcome for the company.
However, these figures represent estimated hydrocarbons in place rather than confirmed commercially recoverable reserves.
The distinction is important because not all oil and gas contained within a geological formation can necessarily be extracted economically.
Further technical evaluation, reservoir assessment and development planning will be required to establish how much of the discovered resources can ultimately be produced.
Seplat is also working to complete the Aku-01 well as a potential future production well, with plans to connect it to existing infrastructure to support the early commercialisation of the discovered resources.
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Aku-01 discovery strengthens Seplat’s Nigerian portfolio
The discovery adds to Seplat Energy’s exploration opportunities in Nigeria, where the company operates across onshore and offshore oil and gas assets.
Seplat holds a 40 per cent operated interest in PPL 2A25, with its joint venture partner, NNPC Limited, holding the remaining 60 per cent, according to reporting on the discovery.
The company’s exploration activities form part of a broader strategy to sustain production, expand its resource base and increase the contribution of natural gas to Nigeria’s domestic energy supply.
Nigeria has continued to pursue higher oil production and increased gas utilisation as part of efforts to strengthen government revenue, improve energy security and support industrial development.
The Aku-01 discovery could contribute to these objectives if subsequent technical assessments establish commercially viable production opportunities.
For Seplat, the planned second exploration well provides an opportunity to build on the geological information obtained from the initial discovery and assess whether additional resources can be established within the licence area.
Seplat’s production and financial performance
The exploration announcement comes against the background of improved operational and financial performance by Seplat Energy during the first nine months of 2026.
In its results for the period ended 30 September 2026, the company reported average working-interest production of 144,999 barrels of oil equivalent per day (boepd), representing a seven per cent increase from 135,636 boepd recorded during the corresponding period of 2025.
Its third-quarter production also increased to 155,801 boepd, compared with 137,888 boepd in the same quarter of the previous year.
The company attributed part of its operational progress to improved onshore output and its offshore idle-well restoration programme.
The restoration programme had added approximately 33,700 barrels of oil per day and 176 million standard cubic feet of gas per day in gross joint venture production capacity from 41 restored wells during the year to date.
These developments demonstrate the importance of combining new exploration activities with efforts to restore production from existing assets.
For Nigeria’s petroleum industry, increasing output does not depend exclusively on discovering new oilfields. Improving the performance of existing wells, maintaining infrastructure and ensuring reliable transportation of crude oil and natural gas are also essential.
Seplat’s financial results further reflected the improvement in its business performance.
Revenue increased by 27 per cent to $2.764 billion during the nine-month period, compared with $2.177 billion in the corresponding period of 2025.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 38 per cent to $1.53 billion, while net income increased to $260.2 million from $95 million recorded a year earlier.
The company also reported that cash generated from operations reached approximately $1.479 billion.
These financial results provide additional context for the company’s exploration plans, as sustained cash generation can support investment in drilling, infrastructure and other development projects.
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What the discovery could mean for Nigeria’s oil and gas industry
The Aku-01 discovery comes at a time when Nigeria is seeking to strengthen its position as a major African oil and gas producer.
The country’s petroleum sector remains important to government revenue, foreign exchange earnings, employment and industrial activity.
However, production challenges, infrastructure limitations, crude oil theft, pipeline disruptions and insufficient investment have continued to affect the industry’s ability to achieve its full potential.
New exploration successes could help improve Nigeria’s long-term production outlook by expanding the country’s resource base and creating opportunities for future field development.
The gas component of the Aku-01 discovery is particularly relevant to Nigeria’s ambition to increase domestic natural gas utilisation.
Natural gas is an important feedstock for electricity generation, fertiliser production, manufacturing and other industrial activities.
Additional commercially viable gas resources could support these sectors, provided that the necessary processing, transportation and distribution infrastructure is available.
Seplat’s intention to connect the Aku-01 well to existing infrastructure could also help reduce the time and investment required to bring any commercially recoverable resources into production.
Nevertheless, the actual contribution of the discovery to Nigeria’s energy supply will depend on further evaluation, development decisions, regulatory approvals and the eventual production capacity of the well.
The importance of the planned 2027 exploration well
The second exploration well planned for 2027 will be important in determining whether the positive geological results from Aku-01 can be replicated in another prospect within PPL 2A25.
Testing one of the four de-risked prospects could provide additional information about the distribution and scale of hydrocarbons in the wider Aku exploration area.
A successful result could strengthen the commercial case for further exploration and potentially support a broader development programme.
However, exploration drilling involves financial and technical risks. The presence of hydrocarbons in one well does not automatically guarantee similar results in neighbouring locations.
Seplat will therefore need to assess geological data, reservoir characteristics and potential production economics before making further investment decisions.
The company has identified 2027 as its target for the second well, but the announcement should be understood as a planned exploration activity rather than confirmation that drilling has already commenced.
What happens next?
The immediate priority is the completion and evaluation of the Aku-01 well as a potential future production asset.
Seplat intends to connect the well to existing infrastructure to support early commercialisation, subject to the technical and operational requirements of the project.
The next major exploration milestone will be the proposed second well in 2027, which is expected to test one of the four prospects whose geological uncertainty has been reduced by the Aku-01 discovery.
Further assessments will be necessary to establish commercially recoverable volumes and determine the development potential of the wider exploration area.
For Nigeria, the development offers another indication of the opportunities available within its domestic oil and gas resources. Whether those opportunities translate into higher production, increased investment and stronger energy security will depend on the successful execution of exploration and development activities.
Seplat’s Aku-01 discovery has therefore opened another chapter in its Nigerian exploration programme, with the planned 2027 well expected to provide further insight into the area’s hydrocarbon potential.
Weng Global – Stories beyond borders
Sources
- Seplat Energy Plc – Unaudited Nine-Month Results for the Period Ended 30 September 2026.
- Nigerian Exchange Group – Seplat Energy Third-Quarter 2026 Financial Report.
- Premium Times – Seplat Discovers 19 Million Barrels of Oil, 157 Bcf of Gas in Imo State.
- Punch – Seplat Plans Second Exploration Well After Aku-01 Discovery.
- Nairametrics – Seplat Discovers 157 Billion Cubic Feet of Gas, 19 Million Barrels of Oil in Nigeria.
