Seven Energy International Limited in its end of the year results for December 31, 2015 released on Friday announced that the overall gas delivered from the south east Niger Delta gas business increased to around 70Mmscf/d from 23 Mmscf/d in 2014.

In Q4 of 2015, the company witnessed a strong achievement on gas deliveries, as December reached the year’s peak monthly average of 114 million cf/d, supplying to five customers.

Gross oil production increased by 13% to 57,000 bpd from 52,500 bopd the previous year. In spite of the decline in the global oil prices, the company’s operating cash flow increased by over 50% to $215 million in 2015 from $141 million.

According to the company, the North East-1 prospect on the Uquo field was drilled realizing commercial finds of both oil and gas. This adds 20 million boe gross 2P reserves and prolongs the reserve life under current gas sales contracts by an additional two years.

Oil output from the Stubb Creek and Uquo fields was at an average gross production of 2,200 bopd, with net claim of 800 bopd to Seven Energy. First lift of oil was received from ExxonMobil’s Qua Iboe terminal in April 2015, with average gross carry of 1,800 bopd for the year (600 bpd net to Seven Energy). Average gathered oil price for that year was $55 per bbls.

Meanwhile, gross daily average oil production from OMLs 4, 38 & 41 increased by 9% to 57,000 bpd for the full year compared to 52,500 bpd in 2014. Per day output rates reached more than 85,000 bpd gotten from the Oben, Sapele, Ovhor, Amukpe, Okporhuru and Orogho fields. However, output outlooks for 2016 are predicted to be like 2014 and 2015.

Seven Energy plans to conclude the construction of the Oron to Creek Town gas pipeline in mid-2016, so as to integrate its midstream infrastructure and boost the supply of as demands rose to 150 Mmcf/d by year end.

The construction of this gas pipeline, together with the Federal Government’s development work on the electricity transmission lines and sub-stations in the region, will serve as the facilitator for the next significant increase in gas supply.

The independent Nigerian integrated oil and gas development, production and gas distribution company also plans to obtain more gas contracts including low volume, high value ‘last-mile’ customers in the vicinity of its infrastructure as well as conclude the restructuring of the business into Upstream & Midstream units, Agence Ecofin reports.

Anita Fatunji