Corporate presentation October 2014 Disclaimer This presentation - - PowerPoint PPT Presentation

Corporate presentation

October 2014

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

• ffer, 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” or “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;
• 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 otherwise. 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.

3

Seven Energy at a glance

December 14

Seven Energy is an indigenous Nigerian oil and gas exploration, development, production

and distribution company with a vision to become the leading supplier of gas to the Nigerian domestic market for power generation and industrial consumption.

Key facts 200 MMcfpd gas processing facility 227 km network of gas pipelines 600 MMcfpd gas distribution capacity 354 MMboe 2P + 2C reserves and resources 51,600 bopd average gross oil production (2013) First commercial delivery of gas in January 2014

Integrated player in Nigerian oil & gas

Seven Energy at a glance

• Business consists of two types of operations onshore in Nigeria:
• Upstream oil and gas exploration, appraisal, development and production; and
• Midstream gas processing, distribution, sales and marketing

Upstream Midstream Reserves & resources Lower risk exploration focused on relatively secure areas onshore Nigeria Development & production On-stream assets and near-term development assets Processing Gas processing capacity in close proximity to key demand areas Distribution Existing network of pipelines linking supply with demand Sales & marketing Established long-term gas sales agreements with customers

232MMboe 2P

NPDC

Strategic Alliance Agreement

200MMcfpd

Gas processing capacity

227km

Network of gas pipelines

3

Long-term take-or-pay agreements

122MMboe 2C

4

Seven Energy has a strong track record …

History

5 December 14

… 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

• f Weatherford

International and merger with Exoro Energy

2007 2008 2009 2010 2011 2013 2012 2014

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) Oil deliveries from the Uquo Field and Stubb Creek Field to export terminal at Qua Iboe to commence Right of Way acquisitions and clearing complete and construction commenced on pipeline from Uquo to Oron to supply the Calabar NIPP power station Acquisition of East Horizon Gas Company (“EHGC”) Commercial gas deliveries to the Ibom Power station commenced Entry into a 20-year, 80% take-or-pay gas sales agreement to supply 131 MMcfpd

• f gas to the Calabar

NIPP power station Train 2 of the Uquo Gas Processing Facility commissioned (additional 100 MMcfpd processing capacity, taking the total to 200 MMcfpd) Construction of the Uquo to Oron pipeline to complete and commercial deliveries to the Calabar NIPP power station to commence Acquisition of SRL 905 (OPL 905) Entry into a 10-year, 100% take-or-pay gas sales agreement to supply 43.5 MMcfpd of gas to the Ibom Power station $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

• Upstream assets encompass:

–

South east Niger Delta – Uquo and Stubb Creek Fields (oil and gas)

–

North west Niger Delta – OMLs 4, 38 and 41, via Strategic Alliance Agreement with NPDC (oil and gas)

–

Anambra Basin – OPL 905 (gas)

• Group 2P + 2C reserves and resources of 354 MMboe, of which the 2P reserves are

232 MMboe

• Midstream activities include significant gas infrastructure to supply the power sector

and industrial customers, including: –

200 MMcfpd gas processing facility

–

227 km of gas distribution pipelines with 600 MMcfpd of gas distribution capacity

• Seven Energy’s vision is to be the leading supplier of gas to the domestic market for

power generation and industrial consumption

• The Group aims to use its first mover advantage in the domestic market to maximise

stakeholder value through sustainable long-term growth along the value chain from upstream to midstream

Seven Energy is a unique business …

Business

6 December 14

Gas Receiving Facility near Ibom Power Station Pipeline from Uquo to Ikot Abasi

… operating along the value chain from upstream to midstream

Locations

7 December 14

Our upstream and midstream assets are located onshore Nigeria … … in relatively secure locations in the Niger Delta and Anambra Basin

Nigeria presents significant growth opportunities …

Market overview - gas

8 December 14

• At 179 Tcf, Nigeria benefits from having the largest gas

reserves in Africa

• However, these reserves are highly under-developed owing to

an historic focus on oil – Nigeria is only ranked 23rd in terms of gas production in the world (vs 9th in terms of proved gas reserves)

• Of this, only 14% 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.2,000 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 Breakdown of use of Nigeria’s gas production (2012) Supply and infrastructure

24% 24% 38% 14%

Flared Upstream use Exported Power industry and other

9 30 48 65 179 UK Netherlands India Egypt Nigeria 3 3 5 6 7 India Nigeria Egypt UK Netherlands 4 8 9 14 29 Nigeria Egypt Netherlands India UK Proved gas reserves (2013) Tcf Total gas production (2013) bcfpd Gas pipelines ‘000 km

… for indigenous players like Seven Energy

Strong forecast growth in gas demand …

Market overview - gas

9 December 14

• Large, growing population of 174 million, the largest in Africa.

In addition, the population is young and rapidly urbanising

• Fast growing economy (6.9% p.a. forecast from 2013 to 2019)
• However, the pace of economic growth is constrained by lack
• f investment in infrastructure, chronic power shortages and a

reliance on expensive diesel for power generation

• In addition, Nigeria currently imports the vast majority of its

consumed petroleum products (with $17.5 billion spent annually for power generation alone) Strong growth in domestic demand for gas Compelling economics to switch from diesel to gas Fast growing market Power sector reforms

• There is increased focus by the Nigerian Government to develop

power infrastructure to support growth …

• … with a target of 40 GW of installed power capacity by 2020 (vs

6 GW at present) – the majority to come from new gas fired power stations

• Strong growth in demand for gas expected (11.3% from 2012 to

2025)

• Power sector to continue to be the most important sector but

with feedstock industries forecast to grow the fastest

22.21 Ibom Power Calabar NIPP UniCem Diesel 2012 2015 2020 2025 Light domestic industry Gas powered industries Feedstock Power Bcfpd 1.8 3.6 5.2 7.2 Weighted average price: $2.80

… due to demographic and economic growth and power sector reforms

$/MMbtu

Nigeria’s significant oil reserves and shift in focus by IOCs …

Market overview - oil

10 December 14

• Nigeria has significant oil resources, and an economy that is

reliant on the revenues from these resources (c.96% of export earnings and c.40% of the Nigerian Government’s revenues)

• The majority of Nigeria's oil reserves are found in the Niger

Delta, with additional oil reserves being found offshore in the Bight of Benin, the Gulf of Guinea and the Bight of Bonny

• IOCs have been active in Nigeria since the 1950s and NNPC, the

state-owned oil company, and its subsidiary, NPDC, have majority stakes (55-60%) in most fields. The IOCs (e.g. Shell, Chevron, Total, ExxonMobil, Eni) act as partners and operators

• n these fields
• The IOCs have shifted their focus from onshore projects to LNG

and deepwater offshore exploration and production due to a strategic switch to large projects with less security risk

• Since 2009, the IOCs have undertaken a programme of

divestment of onshore Niger Delta interests. Shell has been at the forefront of this, with 2 disposal rounds completed to date (OMLs 4, 38 and 41 and OMLs 26, 30, 34 and 42). Chevron and Conoco are currently in divestment processes

• Combined with strong political backing for the development of

an indigenous oil industry, these divestments provide

• pportunities for indigenous players to grow their asset base

Proved oil reserves – Africa (2013) Oil production – Africa (2013)

49 37 13 12 4 Libya Nigeria Angola Algeria Egypt 2,322 1,801 1,575 988 714 Nigeria Angola Algeria Libya Egypt Bnbbl Mbopd

… means opportunity for indigenous players

With fully integrated upstream to midstream operations …

Integrated business model

11 December 14

Commercialisation

Seven Energy nurtures and adds relationships with both indigenous companies and IOCs, delivering key benefits for employees, customers and communities by acting as an active, reliable and valued partner with high QHSEE/CSR standards. Through the partnerships entered into to date, Seven Energy has built a reputation for having reliable technical, operational and financial capabilities, and will continue to bring these capabilities to existing and future relationships

Reserves & resources Processing Development & production Distribution Sales & marketing Cashflow

Grow and diversify resource base by pursuing lower risk oil and gas exploration, appraisal and M&A opportunities in areas considered to be relatively secure,

• nshore Nigeria

Evaluate and focus on near-term development and production assets to maximise production and convert contingent resources into reserves Expand processing capabilities in line with expected growth of production and demand Connect to new gas offtakers and reach additional demand centres by constructing new and supplementing existing network of pipelines along with other methods of distribution Drive and expand existing customer relationships, whilst identifying and evaluating new offtake

• pportunities

Re-invest the significant majority of generated cash flows into the business to drive further growth, whilst servicing the

• bligations of the

capital structure

Corporate social responsibility

… Seven Energy has a unique access to a fast growing market

Upstream Midstream

Seven Energy’s upstream assets …

Upstream - overview

12 December 14

… constitute a well diversified portfolio

North west Niger Delta South east Niger Delta

OMLs 4, 38 and 41

 Indirect 55% licence interest through

the Strategic Alliance Agreement with NPDC

 Operator: Seplat  2P+2C gross reserves and resources of

400 MMbbl of oil and condensate and 2.3 Tcf of gas

 Average gross production: 51,600

Matsogo Field [sold October 2014]

 Marginal field in OML 56, 49% licence

interest

 Operator: Chorus Energy  Undeveloped and held for sale

Uquo Field

 Marginal field in OML 13, 40% licence

interest

 Operator: Frontier Oil  2P+2C gross reserves and resources

• f 650 Bcf of gas

Stubb Creek Field

 Marginal field in OML 14, 51% licence

interest held by Universal Energy

 Operator: Universal Energy (62.5%

• wned by Seven Energy)

 2P+2C gross reserves and resources

• f 20 MMbbl of oil and 450 Bcf of gas

Emerging infrastructure and substantial identified demand Established infrastructure for distribution and export of hydrocarbons, offering access to the Lagos market and the “last mile” distribution opportunities

Anambra Basin

OPL 905

 40% licence interest  Operator: GTPL  2P+2C gross reserves and resources of

425 Bcf The operator and the outstanding interest in OPL 905 is in the process

• f being acquired by Seven Energy

No established infrastructure, but demand identified for LNG or CNG

354 MMboe of 2P + 2C reserves and resources …

Upstream - reserves and resources

13 December 14

• Uquo Field

–

First gas production commenced in December 2013, with first commercial deliveries taking place in January 2014 to the Ibom Power station

–

Current production volumes of up to 25 MMcfpd

• Stubb Creek Field

–

Early Production Facility finalised and connections to export terminal nearly complete. Initial capacity of 2,000 bopd to be expanded to 8,000 bopd

–

Oil production to commence in 2014

• OMLs 4, 38 and 41

–

Gross average production of 51,600 bopd (2013)

–

Production currently at 6 fields - Oben, Amukpe, Ovhor, Sapele, Okporhuru (from May 2013) and Orogho (from December 2013)

Oil vs gas (2P + 2C)

64% 36% Gas Oil

Reserves and resources growth

MMboe

… and a continued focus on gas

122 232

2C 2P

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

Upstream - OMLs 4, 38 and 41

14 December 14

• 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 2013, average gross production increased by 55% to

51,600 bopd (2012: 33,350 bopd) ….

• … and Seven Energy’s production entitlement grew by 237% to

10,400 bopd from 3,100 bopd (2012)

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

Amukpe, Okporhuru and Orogho

• The future work programme is focused on further development
• f these production fields, as well as appraisal and development
• f discoveries
• In addition, the intention would be to expand the existing gas

infrastructure and transform Oben into a gas processing hub and a major provider of gas to offtakers, particularly within the power sector OMLs 4, 38 and 41 - prospects

24,500 31,300 33,400 51,600

2010 2011 2012 2013 Note: 1) Figures for 2010 are for the 5 months to 31 December 2010, since Seplat became the operator

1

Average gross production (bopd)

+111%

… with strong production track record

First gas production at the Uquo Field …

Upstream - Uquo Field

15 December 14

• 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 650 Bcf of gas
• The field has two completed gas production wells (Uquo-2 and Uquo-4) and one completed oil production well (Uquo - 3). In

addition, the Uquo - 7 and Uquo - 8ST wells have been drilled, and are scheduled for completion as gas production wells in 2014

• In December 2013, production at the Uquo Field commenced to allow testing and commissioning work at the Ibom Power station,

following a programme of repairs and maintenance. Current production is up to 25 MMcfpd, to be increased during 2014 in line with the demands of its customers

• Full oil production and deliveries of oil to ExxonMobil’s Qua Iboe export terminal are scheduled to commence in 2014

Uquo Field – structure

… in December 2013

Uquo Field – wells and prospects

Stubb Creek is ideally located near the Uquo Field …

Upstream - Stubb Creek Field

16 December 14

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 20 MMbbl of oil and 450 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 is scheduled to commence in 2014
• The field will be 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)

• This facility has been mechanically completed and commissioning

work is ongoing. Construction work continues to connect the FUN manifold to ExxonMobil’s Qua Iboe export terminal

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

… and offers additional oil and gas reserves and resources

OPL 905 offers significant opportunities for …

Upstream - OPL 905

17 December 14

… the development of gas reserves and resources

• In January 2014, Seven Energy acquired SRL

905, which holds a 40% licence interest in OPL

• 905. The Group is currently consolidating the

block’s ownership interests and will become the Operator

• OPL 905 is an undeveloped gas asset. The

licence area was previously explored in the 1950s and 1960s and contains 2 gas discoveries – Ihandiago and Amansiodo

• The gross recoverable resources are estimated

to be in the range of 350 – 730 Bcf

• The near term intention is to undertake

appraisal and exploration activities at the field, including acquisition of 2D and 3D seismic data followed by drilling OPL 905 – structure

Seven Energy’s midstream business is operated by Accugas, its wholly-owned subsidiary

Midstream - overview

18 December 14

Accugas is focused on supplying gas to the domestic market

• Seven Energy’s wholly-owned midstream business, Accugas, focuses on sales and marketing,

processing and distribution of gas to the domestic Nigerian market

• The business has recently been strengthened with the acquisition of EHGC, which includes the

128 km East Horizon pipeline

• The Accugas business has 3 components:

–

Processing: gas processing services are provided via the 200 MMcfpd Uquo Gas Processing Facility to Seven Energy’s upstream subsidiaries and joint venture partners. Similar processing services are planned to be offered to other market participants in due course

–

Distribution: gas is transported through an extensive 227 km gas pipeline infrastructure from processing facilities directly to offtakers

–

Sales and marketing: gas sales agreements are entered into with offtakers

• 3 long-term take-or-pay gas sales agreements are in place to sell over 1.3 Tcf of gas

–

10-year 100% take-or-pay gas sales agreement to supply 43.5 MMcfpd to the 190 MW Ibom Power station

–

20-year 80% take-or-pay gas sales agreement to supply 131 MMcfpd to the 560 MW Calabar NIPP power station

–

20-year 80% take-or-pay gas sales agreement, expiring in 2032, to supply UniCem with 25 MMcfpd, contemplated to increase to 50 MMcfpd upon a planned expansion of the cement plant’s production capacity

• Spare capacity is built into Accugas’ distribution infrastructure. The business is therefore

capable of providing long-term supply of gas, a lower cost fuel than most alternatives, to additional offtakers for power generation and for local industry

Seven Energy’s midstream operations are located …

Midstream - demand

19 December 14

… near areas where significant demand has been identified

Seven Energy is the only company in Nigeria …

Midstream - facilities

20 December 14

• First delivery of gas – first commercial deliveries of

gas commenced in January 2014

• This followed a 4-year greenfield development

programme that commenced in 2010

• At present, the Group supplies the 190 MW Ibom

Power station with up to 25 MMcfpd of gas

• The volumes will increase to the full contract

quantity of 43.5 MMcfpd, as the remaining repairs and maintenance at the power station completes

• The construction of the Uquo to Oron pipeline is

well progressed and first deliveries of gas to the Calabar NIPP power station expected by end of 2014, initially through the Ibom bypass

• When both power stations are fully operational,

Seven Energy will supply gas to generate up to 750 MW of power, equivalent to more than 10% of the installed power generation capacity of Nigeria

• In addition, the acquisition of EHGC provides

access to the East Horizon pipeline and the UniCem gas sales agreement where first deliveries commenced in 2012 Overview of the facilities in south east Niger Delta

… to produce gas solely for domestic consumption

Calabar NIPP power station 560 MW

37 km 24-inch Uquo to Oron pipeline

Uquo Field Uquo Gas Processing Facility Stubb Creek Field

23 km 6-inch pipeline

Stubb Creek Early Production Facility

Oron tie-in 62 km 18-inch Uquo to Ikot Abasi pipeline

Gas Receiving Facility

Ukanafun Junction 128 km 18-inch East Horizon pipeline

Gas well Incomplete gas wells Oil well Oil and gas well Seven Energy gas pipeline Seven Energy oil pipeline Third party pipeline

31 km 6-inch pipeline

UniCem

Creek Town / Calabar junction 26 km 24-inch pipeline FUN Manifold 8 km 4-inch pipeline

Qua Iboe Terminal

2 km 10-inch pipeline

Ibom Power station 190 MW

26 km 24-inch pipeline (under construction)

Notes 1) Represents principal shareholders (>3.0%). Seven Energy’s equity capital is composed of ordinary shares and irredeemable convertible loan notes (“ICLNs”). The ICLNs were originally issued to ensure majority Nigerian ownership of ordinary shares, whilst allowing access to international investors. The ICLNs are non-interest bearing, not repayable, have the same dividend rights as ordinary shares and may convert into ordinary shares at pre-determined conversion price. ICLNs have the same voting rights as ordinary shareholders and holders are party to a Securityholders’ Agreement 2) On a fully diluted basis, taking into account share options and warrants, but excluding conversion rights attached to the Company’s 10% Convertible Bond and any equity issued as a result of the EHGC and GTPL acquisitions 3) Before equity to be issued as a result of the EHGC and GTPL acquisitions

Seven Energy benefits from …

Capital structure - equity

21 December 14

Historical equity issued ($ millions)

3 7 19 7 34 70 15 120 68 42 20 12 154 31 69 77 33 255 200 400 600 800 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 Apr-14 Equity issued Cumulative equity raised

15.4% 13.4% 9.9% 7.7% Others 31.6% 3.1%

Investors1,2

Total equity funds issued as of May 2014 ($ millions) 1,0353

… a strong and supportive investor base

15.5% ALAC Fund 3.4%

Other investors include:

Seven Energy has a mix of debt instruments …

Capital structure - debt

22 December 14

Summary of current debt facility Facility

$m

Maturity date

Project Finance Facility to fund Accugas processing and pipeline infrastructure High Yield Bond Term loan provided by Akwa Ibom Investment and Industrial Promotion Council for Stubb Creek Field development 225.0 400.0 9.9 225.0 400.0 9.9 March 2020 October 2021 September 2017 Notes 1) As at 31 October 2013 2) Available from March 2014. On 31 March 2014, $100 million was drawn to finance the EHGC acquisition; in July 2014, £30 million was drawn to go towards part payment of the contingent deferred consideration. 3) Assumed as part of the acquisition of EHGC, which completed in March 2014. $52 million of this facility is currently outstanding

• To support its growing business, Seven Energy

has continued to extend and enlarge its portfolio of debt instruments

• Seven Energy continues to seek opportunities to

strengthen its capital base, which recently included;

–

$300m High Yield Bond (HYB) in October 2014 with international investors. 10.25% coupon / 7 year maturity / B- credit rating (Fitch / S&P)

–

$100m debt from Nigerian Sovereign Investment Authority on the same terms as the HYB

• 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 Acquisition Finance Facility to fund the acquisition of EHGC and its pipeline infrastructure(2) 170.0 130.0 June 2019

… provided by local banks and international investors

Total 846.9 806.9 Bank of Industry Facility, assumed as part of the EHGC acquisition(3) 42.0 42.0 June 2017

Seven Energy continues to deliver improving results …

Performance indicators - financial

23 December 14

EBITDAX Revenue Property, plant and equipment Capital expenditure

$ million $ million $ million $ million

… and to invest for long-term growth

86.8 102.4 345.0 100 200 300 400 2011 2012 2013 7.7 33.9 201.3 100 200 300 2011 2012 2013 215.1 232.0 508.4 100 200 300 400 500 600 2011 2012 2013 506.9 713.3 1,150.6 250 500 750 1,000 1,250 2011 2012 2013

Seven Energy continues to benefit from …

Performance indicators - operational

24 December 14

Gross average production Operating cash flows Total Recordable Incidence Rate Contracted gas volumes

$ million Note: Illustrates the additional contract volumes secured with the acquisition of EHGC and assumes that UniCem’s planned expansion is complete by end of 2015 in order to take the increased volumes of 50 MMcf pdfrom 2016

• nwards

1

• 34.6

77.8 171.9

• 100

100 200 2011 2012 2013 31,300 33,350 51,600 15,000 30,000 45,000 60,000 2011 2012 2013 bopd 159 1,115 1,115 242 250 500 750 1,000 1,250 1,500 2011 2012 2013 0.2 0.0 0.0 0.0 0.1 0.2 0.3 0.4 2011 2012 2013 bcf TRIR

… strong operational performance metrics

Seven Energy’s development plan is in line …

Outlook

25 December 14

… with its vision and objectives

2014 priorities Upstream Midstream

• Completion of additional gas producing wells, drilling of

new wells and increase Uquo Field’s gross field gas production capability to 175 MMcfpd by end of 2014

• Commencement of deliveries of oil of up to 2,000 bopd

and 600 bopd from the Stubb Creek Field and the Uquo Field, respectively

• Continued development of OMLs 4, 38 and 41 to increase

production to 72,000 bopd by year end (exceeded 70,000 bopd October 2nd, 2014)

• Commencement of exploration & appraisal work

programme on OPL 905

• Exploration, appraisal and development of existing assets
• Acquisition of strategically located reserves and resources
• New licence applications to further build asset portfolio
• Development of gas reserves and resources in the Stubb

Creek Field, OMLs 4, 38 and 41 and OPL 905

• Integration of the East Horizon pipeline into the Group’s

gas distribution network

• Readiness for first commercial deliveries of gas to the

Calabar NIPP power station

• Entrance into additional gas sales agreements
• Acquisition of third-party gas to leverage the Group’s gas

infrastructure

• Develop expertise and strategic partnerships for

alternative gas markets such as CNG and micro LNG

• Installation of incremental processing capacity driven by

gas demand Long-term goals

Yemi Osindero Non-executive Director (Standard Chartered) Atul Gupta Non-executive Director (CIPEF) Ashley Dunster Non-executive Director (CIPEF) Robin Pinchbeck Non-executive Director (Petrofac)

Board

26

Board Osam Iyahen Non-executive Director (AFC) Phillip Ihenacho Chief Executive Officer Dr Andrew Jamieson OBE Chairman Dr Joshua Udofia Non-executive Director Fidelis Oditah Non-executive Director Michael Lynch-Bell Non-executive Director Clare Spottiswoode CBE Non-executive Director Board sub-committees (all chaired by Non-executive Directors)

Audit Environment & Community HR & Remuneration

Independent Director

Highly experienced Board with significant industry and Nigerian expertise

Shareholder Board Representative

IFC representatives to be appointed

Chris Odu Non-executive Director (Temasek)

Chris Thomas VP Strategy and BD 20 years of industry experience Ian Brown-Peterside General Counsel 10 years of industry experience Campbell Airlie Chief Technical Officer 30 years of industry experience Bruce Burrows Chief Financial Officer 20 years of industry experience

Management

27

Executive management team Jeff Corey Chief Operating Officer 25 years of industry experience Ani Umoren VP Operations 30 years of industry experience Chidi Chukwueke VP JV Management 20 years of industry experience Nkem Okoro VP Wells and Services 30 years of industry experience Senior management Dr Glenn Bestall VP QHSSE/CSR 30 years of industry experience Abdullah Bukar VP Regulatory Affairs 35 years of industry experience Stephen Tierney MD, Accugas 25 years of industry experience Bassey Unoh VP Capital Projects 30 years of industry experience

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

Phillip Ihenacho Chief Executive Officer 10 years of industry experience

London based Lagos based

Seven Energy is proud of its diverse and talented workforce

People

28 December 14

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

• Seven Energy employs some 170 people, of whom 84% are located in Nigeria, with the remaining 16% being located in London. 93%
• f the Group’s in-country employees are of Nigerian nationality
• In addition, the Group employs a number of contractors, particularly in connection with its various infrastructure projects. As of 31

December 2013, the number of contractors utilised was approximately 130

• 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 27% of its

workforce

• The Group continues to strengthen its policies and procedures for nurturing and developing staff. The Group also tries to employ

locally on the basis of merit and the ability to fill positions

158 172 168 2011 2012 2013 Management Operations and support staff Administration 16% 84% UK Nigeria

Seven Energy’s projects deliver key benefits …

Corporate social responsibility

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… for local communities and Nigeria as a whole

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

Glossary of terms

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“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 “EBITDA” Earnings before interest, taxation, depletion and depreciation and amortisation “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

Nigeria Seven Exploration & Production Limited 7 Anifowoshe Street Victoria Island Lagos, Nigeria Tel: +234 1 277 0600 Accugas Limited 7 Anifowoshe 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