Meren Energy’s first-quarter update highlighted a business that is balancing shareholder returns with investment in near-field drilling, while keeping financial discipline central to its next phase.
A key feature of the quarter was the refinancing of Meren’s reserves-based lending facility. The revised facility increased financial flexibility and left the company with quarter-end liquidity of $366 million. Management said the refinancing supports its ability to fund organic growth opportunities at a competitive cost of capital, while also preserving capacity for selective external opportunities where returns justify the use of capital.
Production in the first quarter was 28.4 thousand barrels of oil equivalent per day on a working interest basis, placing output at the upper end of full-year guidance. On an economic entitlement basis, production was 31 thousand barrels of oil equivalent per day. The Nigerian portfolio remained central to delivery, with Akpo and Aegina performing in line with expectations and Agbami recovering after planned maintenance in the fourth quarter of 2025.
The company is preparing for a more active operational period across Nigeria. Drilling campaigns are expected to begin in late 2026 across its producing hubs, with the Agbami and Akija rig already contracted and a further rig contract for Aegina and Akpo expected shortly. The Akpo Far East prospect is viewed as a near-field opportunity that could be tied back to existing infrastructure if successful, while infill drilling across Akpo, Aegina and Agbami is expected to support future production additions from 2027.
Meren also pointed to progress on its commercial arrangements. An amendment to the gas sales agreement for Aegina and Akpo secured higher gas pricing and introduced some exposure to LNG-linked pricing. The change supported first-quarter gas revenue and included a mechanism to recover historical pricing differences dating back to 2020. Total revenue for the quarter was $114 million, made up of $64 million from one oil cargo and $50 million of gas revenue.
Meren Energy Inc (MER.TO) is a leading independent, full-cycle E&P with production and development assets in deepwater Nigeria, a leading carried position in the Orange Basin across Namibia and South Africa, and operated licences in Equatorial Guinea.
