Meren Energy Inc (TSX:MER, OTCQX:MRNFF, FRA:AFZ0) has highlighted a year of operational and financial change in 2025, underscored by the completion of its Prime amalgamation, improved shareholder returns and continued balance sheet strengthening.
The company said the transaction to take full control of Prime’s assets was transformative, doubling Meren’s reserves and production base.
During the year, Meren returned approximately $100 million to shareholders under its base dividend policy and repurchased 5.9 million shares for about $8 million.
Operationally, the company reported average daily working interest production of 30,800 barrels of oil equivalent per day (boepd) and entitlement production of 35,100 boepd, both in line with revised full-year guidance.
Meren sold three cargoes in the fourth quarter at an average price of $64.40 per barrel and twelve cargoes in 2025 at an average of $72.20 per barrel, both above the average Dated Brent benchmark for the respective periods.
Financially, Meren reduced its reserve-based lending (RBL) facility by $420 million during the year, lowering interest expenses and ending 2025 with debt of $330 million.
The company reported a cash balance of $174.7 million at year-end, resulting in net debt of $155.3 million and a net debt-to-EBITDAX ratio of 0.4 times, with $138.4 million of headroom remaining under the RBL facility.
For 2025, Meren generated EBITDAX of $440.7 million and cash flow from operations before working capital of $261.8 million, while cash capital investments totaled $100.2 million.
The company reported a net loss of $31.6 million, or $0.05 per share, primarily due to a $105.3 million non-cash impairment related to the Agbami cash-generating unit, reflecting more conservative oil price and cost assumptions.
The company’s year-end 2025 reserves evaluation showed declines in proved and probable categories compared with the prior year. After-tax 1P NPV(10) was $588 million, down from $1.25 billion in 2024, while 2P NPV(10) was $1.50 billion, compared to $2.13 billion previously.
Working interest 1P reserves were 48.8 million barrels of oil equivalent (boe) and 2P reserves were 87.7 million boe, both lower year over year. However, aggregate working interest 2P reserves plus 2C contingent resources increased to 140.2 million boe from 129.6 million boe.
Oliver Quinn, Meren CEO, described 2025 as “a strong year of delivery” for the company.
“We closed the transformational Prime consolidation, delivered strong shareholder returns, and strengthened the balance sheet through disciplined deleveraging. These actions have reshaped the company into a simpler, more resilient business that can deliver value through the cycle,” Quinn said.
“As we enter 2026, our priority is consistent execution with a focus on converting our high-quality organic growth opportunities into long term value drivers and returns, whilst maintaining capital discipline and a healthy balance sheet."
2026 outlook
Looking ahead, Meren said Nigeria’s macroeconomic and sector reforms have improved fiscal clarity and investment conditions, supporting renewed offshore activity.
In partnership with joint venture participants, the company is advancing the restart of the Akpo and Egina drilling campaign in 2026 following a pause in 2025. The program is expected to begin with the Akpo Far East near-field prospect, a tie-back opportunity located about five kilometres east of the producing Akpo field. Additional infill wells at Akpo and Egina are planned for late 2026 and early 2027.
At Agbami, life-extension studies for the FPSO are expected to conclude in 2026, with infill drilling targeted to begin in the first quarter of 2027 after the anticipated arrival of a rig in late 2026. The Ikija appraisal well is being matured as the potential first well in that campaign.
Meren also reported an amendment to the gas sales agreement in Nigeria that introduces a revised pricing index more aligned with current LNG economics. The amendment includes a mechanism to recover historical pricing differences dating back to 2020, which the company said is expected to improve future gas revenue.
In Namibia’s Orange Basin, the Venus development remains on track toward a potential final investment decision in 2026 and first oil in 2030, subject to negotiations on fiscal terms.
Front-end engineering and design work is progressing on a development concept of up to 40 subsea wells tied back to a single FPSO with capacity of about 160,000 barrels per day. Through its shareholding in Impact Oil & Gas, Meren holds an effective 3.8% indirect interest in the project under a carried-interest structure through first commercial production.
The company is also advancing exploration efforts in Equatorial Guinea after securing up to two-year extensions on Blocks EG-18 and EG-31 and is seeking farm-in partners to support appraisal, development and exploration drilling potentially in 2026 or 2027.
In South Africa, environmental authorization for exploration drilling on Block 3B/4B remains subject to confirmation following a court-related delay.
Meren said its capital allocation framework will continue to balance reinvestment in organic growth opportunities with sustainable shareholder returns while preserving balance sheet strength and financial flexibility.