Meren Power Inc’s monetary losses deepened for the primary quarter because the elevated oil value surroundings induced by the Center East warfare resulted in a non-cash hedging cost of $37.2 million.
Nevertheless, president and chief government Oliver Quinn highlighted, “As worldwide consumers search options to Center Japanese provide routes, West Africa’s deepwater basins are rising as a strategically very important supply of safe and dependable hydrocarbons. Meren, with its pillars of sturdy stability sheet, excessive netback manufacturing and deep portfolio of natural progress alternatives, is properly positioned to profit because the strategic worth of West African power property is repriced”.
Vancouver, Canada-based Meren presently derives its manufacturing in Nigeria but it surely additionally holds pursuits in Equatorial Guinea, Namibia and South Africa.
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Meren averaged 31,000 barrels of oil equal a day (boed) in entitlement manufacturing and 28,400 boed in working curiosity manufacturing in the course of the January-March 2026 quarter, each down from 39,500 boed and 35,000 boed in Q1 2025 respectively.
Meren nonetheless expects to realize its full-year steerage of 28,000-33,000 in entitlement manufacturing and 23,000-28,000 in working curiosity manufacturing, “supported by the post-turnaround restoration following the deliberate This autumn 2025 Agbami upkeep”.
Meren mentioned it had bought 1 cargo of about 1 million barrels lifted in February 2026 “at an all-in gross sales value of $63.7/bbl, which compares to the typical Bloomberg Dated Brent value of $71.1/bbl for February 2026”.
“Following the modification of the PML [Petroleum Mining Lease] 2/3 gasoline gross sales settlement in January 2026, to safe larger gasoline costs aligned with the consumers’ present LNG economics, Meren acknowledged extra gasoline income of $40.8 million”, it added.
Meren recorded internet losses of $42.2 million, in comparison with a internet revenue of $50.9 million for Q1 2025. The year-on-year decline was “principally pushed by the non-cash by-product cost and share of affiliate losses”, it mentioned. Adjusted for these nonrecurring gadgets, internet losses for Q1 2026 stood at $13 million. Internet losses final yr totaled $31.6 million.
Meren declared a dividend per share of $0.0371 for Q2 2026, totaling round $25.1 million.
EBITDAX for Q1 2026 totaled $100.2 million. Money circulation from operations earlier than working capital was $79 million.
Meren held $161.6 million in money on the finish of Q1 2026, whereas internet debt stood at $208.4 million.
“In collaboration with its JV Events, the Firm continues to make good progress in direction of the restart of drilling and intervention actions throughout Akpo and Egina following the 2025 pause”, Meren mentioned. “Work to safe a deepwater drilling unit is advancing, with rig mobilization anticipated in H2 2026. The Akpo Far East exploration properly is deliberate as the primary properly within the upcoming marketing campaign, adopted by a return to drilling on the Akpo and Egina fields, with manufacturing from these wells anticipated in early 2027.
“In parallel, properly intervention actions are being deliberate throughout chosen present wells to assist and maintain manufacturing forward of the broader drilling marketing campaign.
“The Akpo Far East prospect stays a strategically positioned, fast-cycle tie-back alternative using present Akpo infrastructure in case of exploration success. This prospect has an unrisked, finest estimate, gross area potential useful resource quantity of 143.6 MMboe [million boed], or roughly 23.0 MMboe internet to Meren’s 16 p.c working curiosity… Prospect maturation actions proceed, with present efforts centered on properly optimization and remaining properly design, supporting the deliberate properly spud later in 2026.
“Work stays energetic throughout PMLs 2/3 license areas [operated by TotalEnergies SE], with reservoir administration and infill properly analysis persevering with throughout each Akpo and Egina, and additional alternatives remaining underneath energetic consideration.
“Subsurface research and situation assessments on the Preowei area (‘PML 4’) continued into Q1 2026, with progress on subsurface maturation actions and up to date useful resource estimates to assist the timing and scope of a possible remaining funding choice. Exercise for the Egina South oil discovery, together with deliberate appraisal drilling by TotalEnergies on the extension of this discovery within the neighboring OPL [Oil Prospecting License] 257 throughout 2026, continues to supply potential upside via proximity to present Egina FPSO [floating production, storage and offloading] infrastructure.
“For PML 52 (Agbami) and PPL 2003 (Ikija), exercise in the course of the interval centered on progressing the primary section of the upcoming drilling program, which is scheduled to start in This autumn 2026, beginning with the Ikija appraisal properly. In parallel, Agbami continued to get well from the deliberate This autumn 2025 turnaround and upkeep marketing campaign. The broader infill drilling program for Agbami stays on monitor, with six infill wells presently deliberate throughout 2027 and 2028.
“Nigeria’s macroeconomic and sector-specific reforms proceed to realize traction, with improved fiscal readability, regulatory stability and focused authorities incentives supporting renewed funding within the nation’s upstream sector.
“This improved funding local weather is evidenced by current developments, together with the recommencement of labor on Shell’s ~$20 billion Bonga Southwest challenge, with the FID anticipated in 2027, and ExxonMobil’s development of the Owowo deepwater challenge, representing an additional ~$8 billion of funding in Nigeria’s offshore oil sector”.
To contact the creator, e mail jov.onsat@rigzone.com
