Corporate presentation Gas to light up Nigeria June 2016 - - PowerPoint PPT Presentation

Corporate presentation

June 2016

Gas to light up Nigeria

Disclaimer

2

This presentation is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in the United States or Nigeria or in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful. The information contained in this presentation has not been audited by independent auditors or other third parties and is based on internal records and reporting systems. Certain statements in this report regarding our prospects, plans, financial position and business strategy may constitute forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”

• r “continue” or the negative of these terms. All forward-looking statements, including discussions of strategy, plans, objectives, goals and future events or performance,

involve risks and uncertainties. While we believe these statements to be reasonable, they are merely estimates or predictions and cannot be relied upon. We cannot assure you that future results will be achieved. Factors, risks and uncertainties that may cause actual outcomes and results to be materially different from those indicated, expressed, projected or implied in the forward-looking statements used in this report include, among others:

• The concentration of our primary reserves and resources in one geographic region pursuant to one agreement, the Strategic Alliance Agreement;
• allegations that negatively portray our business, operations and assets, including but not limited to the Strategic Alliance Agreement, our interest in the OMLs

and relationships with third-parties;

• a failure to agree upon the interpretation or application of certain contractual terms with our contractual counterparties with respect to the Strategic Alliance

Agreement;

• logistical and operational difficulties associated with operating in Nigeria;
• changes in governmental regulation, including regulatory changes affecting the availability of permits, and governmental actions that may affect operations
• r our planned expansion;
• the exposure to increased market risk and uncertainty as a result of operating in an emerging market;
• the inability to obtain funds to maintain our ongoing operations, grow our business and complete planned projects;
• delays, disruptions and disputes with third-party operators, partners and other project participants;
• limited growth in Nigerian domestic demand for gas and;
• price fluctuations in oil, gas and refined products markets and related fluctuations in demand for such products.

This list of important factors is not exhaustive. When relying on forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, especially in light of the political, economic, social, and legal environment in which we operate. Such forward-looking statements speak only as of the date on which they are made. Accordingly, we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or

• therwise. We do not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such

forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely scenario. These cautionary statements qualify all forward looking statements attributable to us or persons acting on our behalf.

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Seven Energy at a glance

July 16

Seven Energy is the leading integrated gas company in south east Nigeria, with upstream oil and gas interests in the region. We have a deep understanding of the domestic Nigerian gas market, supplying gas to the power generation and manufacturing industries, principally through our own integrated processing and pipeline infrastructure.

Highlights

>$1 billion

Invested in gas production, processing and distribution infrastructure in south east Nigeria

101 MMcfpd

South east gas deliveries 130% increase (Q1 2015: 44 MMcfpd)

452 MMboe

2P plus 2C reserves & resources increase 9% (2014: 414 MMboe)

Indigenous Nigerian

198 employees of which 92% are Nigerians

200 MMcfpd

Gas processing capacity

Blue chip investor base

Nigeria, Africa’s most attractive

• pportunity

Nigeria presents significant growth opportunities …

Market overview - supply

5 July 16

Nigeria’s underdeveloped gas resources

9 28 50 65 180 UK Netherlands India Egypt Nigeria Proved gas reserves (2014) Tcf

• Nigeria benefits from having the largest gas reserves in Africa of 180 Tcf – ranked 9th in the

world for proved gas reserves

• Nigeria lags behind that of its African peer group at 3.7 Bcfpd – ranked only 22rd for gas

production in the world

• Only 14% of gas production reaches the domestic market, with the majority being exported

as LNG, flared or used in E&P

• Supply for the domestic Nigerian gas market is estimated to remain tight until at least 2020,

if not 2025

• In addition, Nigeria has very little processing and distribution relative to its reserves,

production and potential demand

• Of its c.4,000 km of gas pipelines, only a third is dedicated to domestic consumption with the

remaining being dedicated to LNG exports

• Although there are a number of ongoing and planned infrastructure projects, Nigeria is likely

to remain infrastructure constrained for the next 10 to 15 years

3 4 4 5 5 India Nigeria UK Egypt Netherlands Total gas production (2014) Bcfpd 4 8 9 14 29 Nigeria Egypt Netherlands India UK Gas pipelines ‘000 km

… for players like Seven Energy with a proven track record of gas delivery

6.3 3.3 4.6 5.3 5.3 2014 2015 2016 2017 2018

Market overview - demand

6 July 16

Nigeria’s growth potential

Strong forecast growth in gas demand … … due to demographic and economic growth and power sector reforms

182 263 399 2015 2030 2050

Population growth (2015)

(millions)

• $569 billion – Nigeria is Africa’s biggest economy; forecast to maintain

robust growth of 5% per annum (2016-2018)

• However, the pace of economic growth is constrained by lack of

investment in infrastructure, chronic power shortages and a reliance

• n expensive diesel for power generation
• 182 million – Africa’s largest population; projected to reach 263

million by 2030, fastest growing population in the top ten most populous countries in the world

• Nigeria has a rapidly growing middle class. Currently estimated at 4.1

million households, this is expected to grow at 7.2% per annum, adding a further 7.6 million middle-class households over the next 16 years.

• The Nigerian Government, through the Gas Master Plan, actively

looking to address power supply shortfall – with the solution to come from new gas fired power stations

• 156 kWh per capita – Nigeria has one of the lowest rates of electricity

generation per capita

156 744 1,700 Nigeria India Egypt UK Netherlands

Electric power consumption (2012)

(kWh per capita) 6,871 5,452

GDP growth (2015)

(%)

The Nigerian opportunity

7 July 16

9 28 50 65 180 UK Netherlands India Egypt Nigeria 3 4 4 5 5 India Nigeria UK Egypt Netherlands 4 8 9 14 29 Nigeria Egypt Netherlands India UK Proved gas reserves (2014) Tcf Total gas production (2014) bcfpd Gas pipelines (2013) ‘000 km

Underdeveloped gas resources Market demand to be met Lack of infrastructure

Macroeconomic challenges

• Weakened oil price
• Naira / Dollar convertibility
• Counterparty risk
• Access to international capital markets
• Heightened security risk

Barriers to entry?

Seven Energy’s investors

8 July 16

Historical equity issued ($ million)

3 7 19 7 34 70 15 120 68 42 20 12 154 31 69 77 33 255 3 26 100 200 400 600 800 1,000 1,200 0.0 50.0 100.0 150.0 200.0 250.0 300.0 Oct-06 Nov-07 Jan-08 Jun-08 Aug-08 Aug-08 Oct-08 May-09 Dec-09 Mar-10 Aug-10 Nov-10 Nov-10 Jan-11 Jul-11 Oct-12 Jan-13 Jan-14 May-14 Jan-15 Feb-15 Feb-16 Equity issued Cumulative equity raised

Total equity funds issued as of March 2016 ($ millions) 1,161 Recent equity issues



IDB Infrastructure Fund II, managed by ASMA, a fund with a target size of $2 billion, invests in infrastructure opportunities across Asia, the Middle East and Africa invested $50 million in February 2016



Our five biggest shareholders showed continued support for our business with an investment in February 2016 of $50 million



Temasek, a “AAA” rated investment company with a S$266 billion portfolio owned by the Government of Singapore, invested $150 million in May 2014



IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries, invested $75 million in May 2014, along with $30 million from the IFC ALAC

We enjoy continued support from our long term investors and have recently welcomed the IDB Infrastructure Fund II, sponsored by the Islamic Development Bank and other institutional investors through their recent investment in our business of $50 million

Chris Thomas Director, Strategy & Corporate Development 20 years of industry experience Bruce Burrows Chief Financial Officer 20 years of industry experience

High quality management

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Executive management team

Jeff Corey Chief Operating Officer 30 years of industry experience Chidi Chukwueke Director of Government Affairs 20 years of industry experience Bassey Umoh Managing Director, Upstream 30 years of industry experience

Seven Energy has a highly experienced Executive Management team that combines local experience with international oil and gas industry expertise

London based Lagos based

July 16 Phillip Ihenacho Chief Executive Officer 10 years of industry experience Ian Brown-Peterside Managing Director, Midstream 15 years of industry experience

Peter Gutman Non-executive Director (Standard Chartered) Atul Gupta Non-executive Director (CIPEF) Ashley Dunster Non-executive Director (CIPEF) Matthew Harwood Chairman (Petrofac)

Experienced Board

10

Board

Osam Iyahen Non-executive Director (AFC) Phillip Ihenacho Chief Executive Officer Michael Lynch-Bell Non-executive Director

Board sub-committees

Audit

Environment & Community

HR & Remuneration

Independent Director

Highly experienced Board with significant industry and Nigerian expertise

Shareholder Board Representative

Cyril Odu Non-executive Director (Temasek) July 16

Executive Director

Lubomir Varbanov Non-executive Director (IFC) Stephen Vineburg Non-executive Director (ASMA Capital)

Asset Overview

Our assets are located in three core areas,

• nshore Nigeria,

in relatively secure locations.

Where we operate

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Meeting our customers needs

The United Cement Company of Nigeria Limited (Unicem) is an associate of Lafarge Africa Plc and is one

• f Seven Energy’s anchor customers.

Ibom Power

• 10-year; 100% take-or-pay; 20 MMcfpd
• First commercial delivery in January 2014
• State owned power station and state

government guarantee Calabar NIPP

• 20-year; 80% take-or-pay; 131 MMcfpd
• Delivery commenced in H1 2015
• Federal government owned power station

and expected World Bank partial risk guarantee UniCem

• 20-year 80% take-or-pay (expires 2032)
• 25 MMcfpd (increasing to 50 MMcfpd in

2016)

• Nigeria’s third largest cement plant and
• wned by a consortium comprised of

Lafarge, Holcim and Flour Mills of Nigeria Alaoji NIPP

• 1-year; 80% take-or-pay; 30 MMcfpd
• Federal Government owned power station

Contracted gas volumes under robust contracts and located near high demand areas within close proximity to upstream assets owned by Seven Energy

Midstream assets & contracts

Gas offtake agreements Pipelines Additional capacity

• 400 MMcfpd of spare distribution capacity
• Close proximity to further power stations and industrial

clients

• Capable of providing long-term supply of gas to

additional customers for power generation and for local industry

• One of the largest independent gas processing players

in sub-Saharan Africa in terms of capacity

• 62 km Uquo to Ikot Abasi gas pipeline
• 128 km East Horizon gas pipeline
• 37 km Uquo to Oron gas pipeline
• 26 km Oron to Creek Town pipeline under construction (expected

completion by Q1 2016)

• Agreement to transport gas through the NGC pipeline from Ikot

Abasi to Obigbo (via Ukanafun)

13 July 16

Well diversified portfolio

Upstream Overview

Anambra Basin North West Niger Delta South East Niger Delta Reserves and resources split (MMboe)

1 69% 2 31%

OMLs 4, 38 and 41

• Operator: Seplat (45% interest)
• 2015 gross production was 57,000 bopd (10,500 bopd net

entitlement)

• Seven Energy is technical and funding partner for NPDC
• Production increased by 160% from 20101 to December 2015
• Established infrastructure:
• Forcados Pipeline and Export Terminal
• Route to Warri oil refinery
• Oil purchase agreement with Shell
• For gas, access to major demand centers (i.e Lagos, Benin City

and Ajaokuta) via major gas trunk lines

• Capex peak in 2014 of $408 million (net); Capex in 2015 was

$125 million (net)

reduced rigs to 1, from 6 in 2014 Uquo Field

• Operator: Frontier Oil (60% interest)
• 2015 daily average gas deliveries of 70 MMcfpd
• Seven Energy is a capital project operator and funding

partner

• Close to gas demand centres (i.e Ikot Abasi, Calabar, Uyo,

Aba and Port Harcourt) that hosts power station and industrial customers

• Oil production, deliveries and sales to ExxonMobil’s Qua Iboe

export terminal commenced in Q1 2015

• 2015 daily average gross oil production of 500 bopd
• Uquo NE-1 commercial oil and gas discoveries added 20

MMboe gross 2P reserves extending reserve life under existing contracts by two years

Stubb Creek Field

• Operator: Universal Energy (62.5% owned subsidiary)
• Oil field, non associated gas development plan
• 2015 daily average gross oil production of 1,700 bopd

14

• Situated in one of Nigeria’s industrial heartlands
• Low cost access to low risk contingent resources and

exploration

Net 2P: 252mmboe Net 2C: 200mmboe

July 16

Note: 1) Figures for 2010 are for the 2 months to 31 December 2010, since Seven Energy entered the Strategic Alliance Agreement

Uquo 18% Stubb Creek 13% OMLs 4, 38 & 41 54% Anambra basin 15%

Upstream – Net Reserves & Resources

Net 2P + 2C reserves & resources – 452 MMboe Gross 2P + 2C reserves & resources – 452 MMboe Reserves growth: 2009 – 2015 (MMboe) Gross south east Niger Delta 2P + 2C reserves & resources (Bcf)

Gas 69% Oil 31%

July 16

Well diversified portfolio

Uquo 62% Stubb Creek 38%

157 171 218 232 220 252 99 62 121 145 122 194 200 99 219 292 363 354 414 452 2009 2010 2011 2012 2013 2014 2015 2P 2C

First commercial gas production at the Uquo Field in January 2014

Upstream - Uquo Field

16 July 16

• Seven Energy has a 40% licence interest in the Uquo Field. The remaining 60% licence interest is held by Frontier Oil, which is also the Operator. The

Group is the technical and funding partner to Frontier Oil and acts as the project manager for the Uquo Field’s development

• The Uquo Field has 2P + 2C gross reserves and resources of 812 Bcf of gas
• The field has four completed gas production wells (Uquo-2, Uquo-4, Uquo-7 and Uquo-8) and one completed oil production well (Uquo-3)
• Gas is being delivered to five customers (Ibom Power, Unicem cement factory, Notore fertiliser plant, Alaoji power station and Calabar NIPP); reaching

a monthly average of 114 MMcfpd in December 2015

• Full oil production and deliveries of oil to ExxonMobil’s Qua Iboe export terminal commenced in February 2015; average gross production reached 581

bopd

Uquo Field – structure Uquo Field – wells and prospects

Stubb Creek is ideally located near the Uquo Field …

Upstream - Stubb Creek Field

17 July 16

Stubb Creek – structure

• Universal Energy, a 62.5% owned subsidiary by Seven Energy, has

a 51% licence interest, and is the Operator of, the Stubb Creek

• Field. Sinopec holds the remaining 49% licence interest in the

field1

• The Stubb Creek Field is an oil asset, with considerable

undeveloped, non-associated gas reserves. 2P + 2C gross reserves and resources are 22 MMbbl of oil and 503 Bcf of gas

• To date, 9 wells have been drilled on the field:
• 4 exploration and appraisal wells drilled by Shell between

1971 and 1983

• 5 development wells drilled, tested and completed between

2007 and 2009 by Universal Energy

• Oil production commenced in 2015, with deliveries beginning in

February to the ExxonMobil Qua Iboe terminal

• The field was brought into production using an Early Production

Facility capable of processing oil at a gross rate of approximately 2,000 bopd (with plans being finalised to increase the processing capacity to 8,000 bopd)

• Average gross oil production reached 2,005 bopd and Seven

Energy’s production entitlement was 401 bopd in 2015

Note 1) Subject to completion of assignment, which is pending consent from DPR

… and offers additional oil and gas reserves and resources

OMLs 4, 38 and 41 have significant reserves and resources …

Upstream - OMLs 4, 38 and 41

18 July 16

• Seven Energy has an indirect 55% licence interest in OMLs 4, 38

and 41, via a Strategic Alliance Agreement with NPDC

• As part of the agreement, the Group funds NPDC’s 55% share of

the operational and development costs of these blocks …

• … in return, Seven Energy recovers its operating costs and capital

expenditures, and receives an entitlement to a share of production attributable to NPDC’s interest

• Since 2010, OMLs 4, 38 and 41 have seen significant growth in

production

• During 2015, average gross production reached 57,000 bopd

(2014: 52,500 bopd) ….

• … and Seven Energy’s production entitlement was 10,500 bopd

(2014: 15,800 bopd)

• Production is now derived from 6 fields – Oben, Sapele, Ovhor,

Amukpe, Okporhuru and Orogho

• The future work programme is constrained in the current low oil

price environment

• The existing gas infrastructure has recently been transformed

with the completion of the 300 MMcfpd processing plant, with the intention to turn Oben into a gas processing hub, becoming a major provider OMLs 4, 38 and 41 – asset portfolio Average gross production (bopd)

… with strong production track record

24,500 31,300 33,400 51,600 52,500 57,000 2010 2011 2012 2013 2014 2015

Upstream – Anambra Basin area

19 July 16

• Seven Energy has established a substantial licence

acreage position in the Anambra Basin area in Blocks OPL 905 (90% licence interest), 907 and 917 (22.5% shareholding in AGER which has a 41% and 42% licence interest respectively) through a series of acquisitions in 2014 and 2015

• Plan to monetise these assets through a combination
• f compressed natural gas (CNG) and piped gas to

smaller, higher priced gas off-takers

• Market studies have confirmed substantial demand for

gas for light industrial power generation around the population centres of Enugu and Onitsha

• Proximity to the national grid and major substations at

Onitsha, Enugu and Newhaven make this a good location for new power plants

• The near term intention is to undertake appraisal and

exploration activities, including acquisition of 2D and 3D seismic data followed by drilling

Anambra Basin licences

The Anambra basin offers significant opportunities for the development of gas resources

Seven Energy continues to deliver robust results and to invest for long-term growth

Performance indicators - financial

20 July 16

EBITDAX ($ million) Revenue ($ million) Cash flow from operations Capital expenditure1 ($ million)

1 CAPEX figures include acquisitions

87 102 344 344 261 1 34 93 345 378 354 2011 2012 2013 2014 2015 Oil Gas 8 34 201 273 62 2011 2012 2013 2014 2015 215 232 508 912 238 2011 2012 2013 2014 2015 (35) 78 172 141 215 2011 2012 2013 2014 2015

3,100 10,400 15,800 11,300 2012 2013 2014 2015

Performance indicators - operational

Increased net reserves and resources (2P+2C) Oil entitlement (bopd) Gas sales growth (MMcfpd) Oil liftings (bopd)

July 16

21

1 Oil entitlement in 2015 – 10,500 bopd from OML 4, 38 & 41; 700 bopd from Uquo & Stubb Creek

1

Seven Energy continues ramp up in gas business

3,600 9,000 10,000 14,100 2012 2013 2014 2015

363 354 414 452 2012 2013 2014 2015

11 18 19 20 20 20 16 15 13 23 13 15 8 6 18 10 15 15 7 11 21 34 33 44 70 77 87 101 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Ibom Unicem Notore Calabar Alaoji

Seven Energy is a Nigeria company with 198 employees, of whom 82% are based in Nigeria and 95% of those are Nigerian nationals

Seven Energy – An Indigenous Company

22 July 16

Average number of employees Headcount by activity Split of employees by location

• Seven Energy employs some 190 people, of whom 84% are located in Nigeria, with the remaining 16% being located in London. 94% of the

Group’s in-country employees are of Nigerian nationality

• The Group has offices in Lagos, Abuja, Port Harcourt, Benin City and Uyo (all Nigeria) and London (UK)
• Seven Energy is committed to sustaining a work force that is both diverse and inclusive. At present, women represent 28% of its

workforce

• The Group continues to strengthen its policies and procedures for nurturing and developing staff. The Group also tries to employ locally
• n the basis of merit and the ability to fill positions

172 168 189 198 2012 2013 2014 2015

4 123 71

Management Operations and support staff Administration

16% 84%

UK Nigeria

Seven Energy’s projects deliver key benefits …

Corporate social responsibility

23 July 16

… for local communities and Nigeria as a whole

Training and employment Power supply and standards of living Local and national economic growth Health and safety Community projects and developments Environment

Glossary of terms

24 July 16

“2P” Proved and probable reserves “2C” Best estimate scenario of contingent resources “bbl” Barrel of oil or condensate “Bcf” Billion cubic feet “Bcfpd” Billion cubic feet of gas per day “Bnbbl” Billion barrels “bopd” Barrels of oil per day “CAGR” Compound annual growth rate “Contingent resources” Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. Contingent resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess

• commerciality. Contingent resources are further categorised in accordance with the level of certainty associated with the estimates and may be sub-classified based on

project maturity and/or characterised by their economic status 1 “EBITDAX” Earnings before interest, taxation, depletion, depreciation and amortization, and before impairment charges “GW” Gigawatt “Mbbl” Thousand barrels of oil or condensate “Mboepd” Thousand barrels of oil equivalent per day “MMboe” Million barrels of oil equivalent “MMbbl” Million barrels of oil or condensate “MMbtu” Million British thermal unit, being the amount of energy required to heat 1 pound (0.454 kg) of water by 1˚F (0.556˚C) at a constant pressure of one atmosphere “MMcfpd” Million cubic feet of gas per day “MW” Megawatt “Tcf” Trillion cubic feet “TRIR” Total Recordable Incidence Rate

Seven Energy has a strong track record …

Appendix 1: History 2007 - 2013

25 July 16

… of development, commercialisation and M & A

Acquisition of GOGE (renamed Seven Energy (BVI)) (Uquo Field) Strategic Alliance Agreement entered into with NPDC for the development of OMLs 4, 38 and 41 Buy-out of a division of Weatherford International and merger with Exoro Energy Completion of a 23 km pipeline from the Stubb Creek Field to Qua Iboe and the 62 km pipeline from Uquo to Ikot Abasi Acquisition of 62.5% interest in Universal Energy (Stubb Creek Field) Train 1 of the Uquo Gas Processing Facility commissioned (100 MMcfpd processing capacity) Right of Way acquisitions and clearing complete and construction commenced on pipeline from Uquo to Oron to supply the Calabar NIPP power station Entry into a 20- year, 80% take-or- pay gas sales agreement to supply 131 MMcfpd of gas to the Calabar NIPP power station Entry into a 10- year, 100% take-

• r-pay gas sales

agreement to supply 43.5 MMcfpd of gas to the Ibom Power station

2007 2008 2009 2010 2011 2013 2012

Drilling of wells U- 2 and U-3, the first wells drilled by the Company on the Uquo field; gas and

• il discovered

Appendix 1: Delivering on strategy and adding value over the last 24 months

26 July 16

Oil deliveries from the Uquo and Stubb Creek Field to export terminal at Qua Iboe commenced Acquisition of East Horizon Gas Company (“EHGC”) Commercial gas deliveries to the Ibom Power station commenced Train 2 of the Uquo Gas Processing Facility commissioned (additional 100 MMcfpd processing capacity, taking the total to 200 MMcfpd) Construction

• f the Uquo to

Oron pipeline completed Acquisition of SRL 905 (OPL 905) $255 million equity investment by the International Finance Corporation (“IFC”), IFC ALAC Fund and Temasek $400m raised in the High Yield Bond market, refinancing existing debt Entered into 2 new ToP GSAs with a Power Station and Fertilizer Plant for a combined delivery quantity

• f 55 MMcfpd

Accugas debt facilities re- financed into a $445 million combined facility $52 million pari passu debt funding secured

2014 2015

Uquo-7 and Uquo-8 drilled and completed Drilled NE-1 prospect with oil and gas discoveries exceeding expectations Acquisition of interests in OPLs 907 and 917 FUN manifold commissioned and tied into Qua Ibo and Uquo and Stubb Creek oil fields; producing West Pipeline Route established through arrangements with NGC to access Calabar and Port Harcourt area with 120+ MMcfpd Negotiated higher selling price for Calabar GSA and commencec construction of Oron-Creek Town pipeline Extension to Uquo licence secured to cover recent Uquo NE-1 discovery, adding 107 Bcf & 1MMstb 2C resources

2016

$100 million additional equity secured from new & existing shareholders

Seven Energy has a mix of debt instruments provided by local banks and international investors

Appendix 2: Capital structure - debt

27 July 16

Summary of current debt facility Facility

$m

Maturity date

Accugas gas processing and pipeline infrastructure facility (“Accugas IV”) High Yield Bond Term loan provided by Akwa Ibom Investment and Industrial Promotion Council for Stubb Creek Field development 445.0 400.0 7.8 385.0 400.0 7.8 March 2020 October 2021 December 2018 Notes 1) As at 31 December 2015

• To strengthen its balance sheet and to support its current

capital expenditure programme, Seven Energy has been restructuring its debt facilities to extend the maturity dates

• Seven Energy continues to seek opportunities to strengthen

its capital base, this recently included the issue of:

• $300m High Yield Bond (HYB) listed on the Irish Stock

Exchange with international investors. 10.25% coupon / 7 year maturity / B- credit rating (Fitch / S&P) in October 2014

• $100m debt from Nigerian Sovereign Investment

Authority on the same terms as the HYB in October 2014

• $52m senior secured term loan facilities raised in June

2015

• $385m refinancing of Accugas facilities in “Accugas IV”,

better aligning repayment profile with gas sales build up, completed in July 2015

• The objective is to ensure that an appropriate capital

structure is in place for long-term growth, both organically and through acquisitions

Drawn(1)

$m Total 937.5 897.5 Bank of Industry Facility, assumed as part of the EHGC acquisition 16.5 16.5 June 2017 Promissory Note 12.0 6.0 June 2015 (or June 2016) Senior Secured Term Loans (pari passu with HYB) 51.8 51.8 October 2021 Naira working capital facility 30.0 30.0 Annually, for four years

Nigeria Seven Exploration & Production Limited 35 Kofo Abayomi Street Victoria Island Lagos, Nigeria Tel: +234 1 277 0600 Accugas Limited 35 Kofo Abayomi Street Victoria Island Lagos, Nigeria Tel: +234 1 277 0600 United Kingdom Seven Energy International Limited 4th Floor, 6 Chesterfield Gardens London W1J 5BQ United Kingdom Tel: +44 20 7518 3850 Email: info@sevenenergy.com www.sevenenergy.com