Question 1
Given that Newcross EP posted a substantial 2025 production increase despite the challenging operating environment, which factors would drive the significant input from assets like Ekulama-12 and Awoba, for instance?
Response
Our Production growth in 2025 was driven by a deliberate asset optimisation and targeted drilling, resulting in an overall increase of about 35% year on year. Our focus has been on maximising value from the reservoirs we already operate by reactivating idle wells, improving well performance, and deploying targeted drilling to offset natural decline.
For example, we successfully reactivated Ekulama-12, which had previously been shut in for approximately 22years, now contributing about 2,800 barrels per day to the field output.
Alongside this, we drilled and completed two new wells, which helped sustain overall field performance. Together, the new wells contributed roughly 11,000 barrels per day of additional production.
These initiatives collectively strengthened production levels and reinforced the effectiveness of our reservoir and production management strategy.
Question 2
What are the ongoing plans or workover strategies to integrate other assets into that production framework on account of this?
Response
In a capital constrained environment, well interventions remain one of the most efficient ways to unlock incremental production. In mature fields such as OML 24 (now PML 55 – 57), sustaining output requires continuous optimisation of existing wells.
Our technical teams implemented a structured programme of workovers and through-tubing interventions to restore productivity in underperforming wells. (In total, about 7 wells were successfully intervened on during the year.
These activities included mechanical repairs, stimulation operations, and improvements to production flow systems. By systematically identifying wells with recovery potential and applying targeted engineering solutions, we extended field life and improved recovery rates without relying solely on new drilling. These interventions restored an estimated 3,000 barrels per day of production capacity.
Question 3
How have the new production volumes reshaped the portfolio balance of NewcrossEP across oil, condensates, and gas, along with the company’s outlook for 2026?
Response
Our portfolio is currently largely oil based, with crude accounting for approximately 90% of production and gas about 10%, but this is gradually evolving.
While oil continues to be a key revenue driver, we are actively expanding our gas development and monetisation efforts. We see gas not just as a diversification play but as a strategic growth area aligned with Nigeria’s domestic energy needs and broader energy transition agenda.
Over time, our goal is to maintain a balanced portfolio where oil continues to deliver immediate value, while gas supports long-term growth and sustainability.
Question 4
With the documented capital constraints in the upstream environment, how is the company distributing funds among drilling campaigns and other crucial interventions to align with project priorities?
Response
Like many operators in the industry, we operate within disciplined capital frameworks which require us to prioritise investments that deliver the highest operational and financial impact.
Our strategy has therefore focused on optimising existing assets before committing to large-scale new developments. By combining targeted drilling with well optimisation programmes, we have improved production while maintaining capital efficiency.
This disciplined approach allows us to sustain operations, manage risk, and ensure investments align with long-term value creation.
Question 5
With zero-flaring targets in Ekulama I & II and the ongoing momentum of Nigeria’s Decade of Gas, what infrastructure upgrades and partnerships are NewcrossEP pursuing to fully unlock the gas potential of OML 24 (now PML 55 – 57)?
Response
Gas utilisation remains a key priority for us. We are actively investing in infrastructure and operational improvements to capture and monetise associated gas that would otherwise be flared.
At NewcrossEP, we have deployed compressors and other gas handling systems to increase gas recovery and reduce flaring volumes. These systems currently handle approximately 22 million standard cubic feet of gas per day (MMscf/d) and have helped reduce routine flaring by about 90%.
These investments support Nigeria’s broader Decade of Gas initiative and align with global expectations around responsible energy production.
Our long-term objective is to maximise gas utilisation while improving environmental performance across our operations.
Question 6
Reports suggest a vast reduction in crude theft, insecurity, and pipeline outages, which have historically undermined value in the Nigerian oil and gas industry. Nevertheless, what risk-mitigation frameworks have been deployed to safeguard recent gains?
Response
Security challenges in the Niger Delta remain a reality for many operators. Our approach is based on a combination of community engagement, operational monitoring, and collaboration with government security agencies.
We work closely with host communities to build trust and ensure that they see tangible benefits from our presence. This has contributed to a noticeable reduction in operational disruptions across our facilities over the past year. This partnership approach has proven effective in reducing incidents and improving operational stability.
In addition, we continue to invest in monitoring systems and operational safeguards that help detect and mitigate disruptions quickly.
Question 7
How have ESG targets been embedded into day-to-day operations, and how are the results being benchmarked for international investors and stakeholders?
Response
Environmental, social, and governance is not a standalone agenda for us, it is embedded in how we operate and make investment decisions. Our ESG approach is built on three key pillars.
Environmental stewardship. We are focused on reducing flaring, improving energy efficiency, and ensuring responsible management of our assets.
Social partnership. Through initiatives such as Host Community Development Trusts, we support sustainable development in the communities where we operate.
Governance. Strong governance structures ensure transparency, accountability, and compliance with regulatory frameworks.
Together, these principles guide our long-term approach to responsible energy development.
Question 8
PIA 2021 continues to reshape relations between industry players and communities. How are NewcrossEP’s Host Community Development Trusts (HCDTs) evolving to ensure transparency, accountability, and shared value creation?
Response
The Host Community Development Trust framework established under the Petroleum Industry Act provides an important platform for structured engagement with host communities.
Through the HCDT structure, communities participate directly in identifying and implementing development initiatives. This creates a more transparent and collaborative approach to community development.
Our objective is to ensure that communities benefit from sustainable projects while also fostering a stable operating environment for our assets.
Question 9
How do you envision the company’s competitive position evolving as energy transition policies become more pronounced and capital flows continue to shift
Response
We see the energy transition as an opportunity rather than a constraint. While global dynamics are evolving, Nigeria will continue to rely on hydrocarbons for economic development, with natural gas playing a critical role in enabling a lower-carbon transition.
As an operator, our focus is on producing oil and gas responsibly while expanding gas development and improving operational efficiency. By aligning our strategy with national energy priorities and global sustainability expectations, we believe we are well positioned to remain competitive in a changing energy landscape.
Question 10
What are some of the lessons that emerged from the success recorded in the Ekulama-12 workover, especially on the operational and technical fronts?
Response
The successful reactivation of Ekulama-12 highlighted the importance of technical discipline and continuous asset evaluation. Since being brought back online, the well has added approximately 2,800 barrels per day to production.
It demonstrated that mature assets can still retain or deliver significant value when the right engineering solutions are applied. It also reinforced the need of detailed reservoir diagnostics before intervention, as well as the impact of strong collaboration between subsurface and production teams
These lessons will continue to inform our approach to field optimisation across our portfolio.
