Corporate presentation October 2014
Disclaimer 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” 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 or 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. 2
Seven Energy at a glance 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 3 December 14
Seven Energy at a glance Integrated player in Nigerian oil & gas • 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 Development & Reserves & Distribution Sales & marketing Processing resources production Existing network of Established long-term Gas processing On-stream assets and Lower risk exploration pipelines linking supply gas sales agreements capacity in close near-term focused on relatively with demand with customers proximity to key development assets secure areas onshore demand areas Nigeria NPDC 227 km 200 MMcfpd 232 MMboe 2P 3 Long-term take-or-pay 122 MMboe 2C Strategic Alliance Network of gas Gas processing agreements Agreement pipelines capacity 4
History $400m raised in the Seven Energy has a strong track record … High Yield Bond market, refinancing existing debt Buy-out of a division Acquisition of GOGE Acquisition of 62.5% Strategic Alliance Acquisition of SRL Acquisition of East $255 million equity of Weatherford (renamed Seven interest in Universal Agreement entered 905 (OPL 905) Horizon Gas investment by the International and Energy (BVI)) (Uquo Energy (Stubb Creek into with NPDC for Company ( “EHGC”) International merger with Exoro Field) Field) the development of Finance Corporation Energy OMLs 4, 38 and 41 (“IFC”), IFC ALAC Fund and Temasek 2007 2008 2009 2010 2011 2012 2013 2014 Entry into a 10-year, Completion of a Entry into a 20-year, Train 1 of the Uquo Right of Way Commercial gas Train 2 of the Uquo Construction of the 100% take-or-pay 23 km pipeline from 80% take-or-pay gas Gas Processing acquisitions and deliveries to the Gas Processing Uquo to Oron gas sales agreement the Stubb Creek sales agreement to Facility clearing complete Ibom Power station Facility pipeline to complete to supply 43.5 Field to Qua Iboe supply 131 MMcfpd commissioned (100 and construction commenced commissioned and commercial MMcfpd of gas to and the 62 km of gas to the Calabar MMcfpd processing commenced on (additional 100 deliveries to the the Ibom Power pipeline from Uquo NIPP power station capacity) pipeline from Uquo MMcfpd processing Calabar NIPP power station to Ikot Abasi to Oron to supply capacity, taking the station to the Calabar NIPP total to 200 commence power station MMcfpd) Oil deliveries from the Uquo Field and Stubb Creek Field to export terminal at Qua Iboe to commence … of development, commercialisation and M & A 5 December 14
Business Seven Energy is a unique business … • 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: – Pipeline from Uquo to Ikot Abasi 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 Gas Receiving Facility near Ibom Power Station … operating along the value chain from upstream to midstream 6 December 14
Locations Our upstream and midstream assets are located onshore Nigeria … … in relatively secure locations in the Niger Delta and Anambra Basin 7 December 14
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