Seven EnergyTechnical profile

Technicalstrengths

Seven Energy Technical profile

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.

Seven Energy operates along the value chain from upstream exploration, appraisal, development and production assets; through to midstream activities comprising ownership of processing anddistribution infrastructure, and marketing to end users.

Key facts

200MMcfpd gas processing facility

260 km network of gas pipelines

600MMcfpd gas distribution capacity

354MMboe 2P + 2C reserves and resources

51,600 bopd average gross oil production (2013)

First commercial delivery of gas in January 2014

Technical overviewSeven Energy has a track record of investment in and development of its technical capabilities.

Since its establishment as an independent company in 2007,Seven Energy has invested over ₦160 billion ($1 billion) in oiland gas developments in Nigeria.

The Group’s business model is unique, as the Group owns,develops, produces and delivers gas to its customers in southeast Niger Delta.

In addition, it works closely with its partners on key oildevelopment projects in both south east Niger Delta andnorth west Niger Delta.

With the investments made to date, Seven Energy has builttremendous experience and expertise, particularly in terms ofgas development projects in Nigeria, but also through oilprojects.

Through its various projects, the Group has gained valuabletechnical expertise and insight into reservoir, processing andpipeline engineering to the point of delivery to the Group’sofftakers.

Project experienceWe have developed extensive project experience through an active programme ofconstruction, development and ongoing maintenance that has delivered, and continues todeliver, successful projects.

Seven Energy Technical profile

Copyright© Seven Energy 2014

D

Ibom Power station

U

Ukanafun U

Ikot Abasi

Port Harcourt

C

Aba

Uquo to Ikot Abasi pipeline• 62 km 18-inch gas pipeline• Greenfield construction,undertaken from 2010 to 2011

• First commercial deliveries of gasmade in January 2014

Seven Energy marginal field areas

Licence areas

Seven Energy oil and gas fields

Seven Energy gas pipelineSeven Energy gas pipeline (under construction)

Seven Energy oil pipelineNGC gas pipeline3rd party gas pipeline3rd party gas pipeline (under construction)

Seven Energy customer (power station)

Seven Energy customer (industrial)

Seven Energy customer (export terminal)

Complete or near complete projects

Ongoing or new projects under consideration

Legend

OML 13

OML 14

Uquo Field

Stubb CreekField

0 40kilometres

3

Stubb Creek EarlyProduction Facility

62 km

23 km

37 km

Calabar NIPPpower station

Qua IboeTerminal

I

UniCem

128 km

Uquo GasProcessing Facility

Calabar

Uyo

Oron

North

Oron to Creek Town pipeline• 26 km 24-inch gas pipeline, withconstruction expected to commence in2014

Uquo to Oron pipeline• 37 km 24-inch gas pipeline• Greenfield construction, undertakenfrom 2013 to 2014

• Pipe laying complete and pipeline dueto be commissioned in 2014

Stubb Creek to Uquo pipelines• 31 km 6-inch gas pipeline and 23 km 6-inch oil pipeline

• Greenfield construction, undertakenfrom 2010 to 2011

East Horizon pipeline• Acquired the completed 128 km 18-inch gas pipeline in Q1 2014

• In operation, delivering gas since 2012

Stubb Creek Early Production Facility• 2,000 bopd capacity• Greenfield construction, completed in2014

• Commercial deliveries of oil toExxonMobil’s Qua Iboe export terminalto commence in 2014

Stubb Creek Central ProcessingFacility• 8,000 bopd capacity• Greenfield construction, currently atdesign stage

Uquo Gas Processing Facility• Two Train gas processing facility,with total capacity of 200 MMcfpd(100 MMcfpd per Train)

• Greenfield development. Train 1was commissioned in 2012, andTrain 2 was commissioned in 2014

• First commercial deliveries of gasmade in January 2014

Uquo to Qua Iboe pipelines• 8 km 4-inch oil pipeline from UquoGas Processing Facility to FUNManifold (greenfield construction -2010 to 2011)

• 2 km 10-inch oil pipeline from FUNManifold to ExxonMobil Qua Iboeexport terminal (greenfieldconstruction, to be commissionedin 2014)

Technical expertiseOver the years, the Group has built strong technical expertise from reservoir development togas deliveries.

Through the delivery of its leading-edge gas projects in southeast Niger Delta, ongoing oil developments at the StubbCreek and Uquo Fields, as well as its support to thedevelopment of OMLs 4, 38 and 41 via the Strategic AllianceAgreement with NPDC, Seven Energy has learnt anddeveloped a wide range of technical capabilities tocomplement its experience.

In particular, the Group has differential expertise in: gasreservoir appraisal and development; high-rate gas welldrilling and completion design and implementation; gasprocessing; development and pre-project planning; project

management (including project controls); gas plant design,construction and operations; and, pipeline design,construction and transportation.

In support to NPDC, as part of the Strategic AllianceAgreement where Seven Energy serves as a technical andfunding partner to NPDC on the development of OMLs 4, 38 and 41, the Group has also seconded to NPDC full-timegeology, reservoir engineering and facilities engineeringresources.

Our technical capabilities include:

• Reservoir engineering• Geology / geophysics• Petrophysics• Development engineering• Reservoir management• Drilling engineering• Completions engineering• Rig supervision• Workover design• Project engineering• Process engineering• Mechanical engineering• Rotating equipment

• Electrical & Instrumentation (E & I) engineering• Computer Assisted Design (CAD)• Telecoms• Project scheduling• Cost engineering• Cost control• Operations management• Production engineering• Maintenance engineering• Safety engineering• Environmental engineering• Quality engineering

Seven Energy Technical profile

Well re-entry and drillingSeven Energy has a track record of successful well re-entries and drilling.

In 2013, Seven Energy re-commenced its drilling programmeand concluded a successful workover and 35 MMcfpd welltest on Uquo-4, as well as the drilling of large bore wells atUquo-7 and Uquo-8ST. The results of the drillings have beenin line with expectations and confirmed excellentcharacteristics of the reservoir.

Since December 2013, the Uquo-2 and Uquo-4 gasproduction wells have been on-production.

Future work plans on the Uquo Field include the completionof Uquo-7 and Uquo-8ST and drilling of further wells on

identified prospects at the Uquo Field, including the Uquo-NE1exploration well.

Upon completion of the infrastructure required to deliver oilfrom the Stubb Creek and Uquo Fields in 2014, productionwill commence from the oil wells at these fields.

Furthermore, additional exploration activities are plannedover the next few years for OPL 905, located in the under-explored Anambra Basin, including acquisition of 2D and 3Dseismic data and drilling of an exploration well.

Recent well achievements

Uquo Field• Uquo-2 and Uquo-4 re-enter and complete as gasproduction wells

• Uquo-3 re-enter and complete as oil production well

• Uquo-7 and Uquo-8ST drill large bore wells

Stubb Creek Field• SC-2, SC-5, SC-6, SC-7 and SC-8 maximum efficiencyrate (MER) tests

OML 56• Amoji-1 re-entry and sidetrack

Planned drilling activity

Uquo Field• Uquo-7 and Uquo-8ST complete as gas productionwells

• Uquo-9 drill and complete

• Uquo-NE1 exploration well drill and test

Stubb Creek Field• Drill non-associated gas (NAG) appraisal well

OPL 905• Drill exploration well (following acquisition and analysis of 2D and 3D seismic data)

Project planning processesKey to Seven Energy’s project successes are its detailed planning processes, which ensure effective project delivery.

7PREP – Project planning process

Effective pre-project planning is essential for successfulproject implementation. Seven Energy has developed and

uses a 7PREP project planning process to help guide itsprojects from initiation to commissioning and operations.

Project initiation

Project planning Project execution

Concept

Front end engineering

design (FEED)

Detailed engineering

Construction & completion

Commis-sioning

Operations

Gate 1

Technical andmanagement

review

Gate 2

Technical andmanagement

review

Gate 3

ManagementreviewFinal

investmentdecision

Seven Energy Technical profile

Corporate governanceSeven Energy is committed to developing and applying high standards of corporategovernance.

Seven Energy has established an effective corporategovernance framework that adds value to its business,supports its reputation and ensures the Group’s long-termcontinuity.

The Group’s approach to corporate governance is applied tothe management of the business and in the Group’saccountability to stakeholders as whole. Its policies andprocedures, as implemented and in use throughout thebusiness, guide its day-to-day operational and administrativeactivities in a transparent and sustainable way.

These policies are based on international standards andbenchmarks, such as:• Quality Management: ISO 9001: 2008; 14001:2004; • Anti-Corruption and Business Ethics: UK Bribery Act 2010,Foreign Corruption Practices Act 1977;

• Health & Safety and Environmental: OHSAS 18001,EGASPIN: 2002;

• Asset Protection: ISO 31000: 2009, VPSHR; and• Corporate Social Responsibility: ISO 9001: 2008; 14001:2004; World Bank and IFC Principles.

For each policy, management systems are in place and utilisedto provide more specific guidance, procedure and to act as amanagement tool.

Seven Energy’s reporting is in-line with International FinanceCorporation (IFC) and Global Reporting Initiative (GRI) andother recognised international reporting standards.

Seven Energy Technical profile

Capital supportIn support of its investment programme, Seven Energy benefits from a strong and supportiveinvestor base.

Seven Energy has made and continues to make significantinvestments in the development of its upstream andmidstream assets.

Its investments are supported by an internationallyrecognised investor base, combined with debt financingprovided by a strong syndicate of local Nigerian banks.

232.0

508.4

215.1

2011 2012 2013

Capital expenditure

Note1 As at 31 May 2014 and on a fully diluted basis (which comprises ordinary shares andirredeemable convertible loan notes, but excludes warrants, share options andconvertible bond options)

Other investors include:Others 31.6%

3.4% 13.4%

15.4%

15.5%

ALAC Fund 3.1%

7.7% 9.9%

Investors1

$million

The Seven Energy opportunityWith its technical expertise and integrated business model,Seven Energy is well placed to act as a partner for furtherprojects to develop Nigeria’s vast oil and gas resources.

Nigeria presents significant growth opportunities. With expected stronggrowth in domestic demand for gas and associated infrastructuredevelopments, the market opportunity is particularly strong for gas.

The combination of Nigeria’s positive demographic changes,economic growth, highly attractive mature resource basecombined with power sector reforms and the shift in focus byinternational oil companies towards offshore assets allcontribute to the attractiveness of the region.

Seven Energy’s upstream and midstream strategy is tofurther develop these resources for the benefit of Nigeria.

Underpinning the model is the Group’s ongoing effortsto enhance existing reserves and resources, throughinvestment into lower risk oil and gas explorationappraisal and development.

With the Group’s integrated business model,Seven Energy offers access to expanding newmarkets, as well as cost pricing advantages overnon-vertically integrated companies.

In addition, the Group seeks to work withupstream partners to monetise theirproduction of gas, either through utilisingSeven Energy’s distribution capacity orthrough other developments of the gasresources.

NigeriaSeven Exploration & Production Limited7 Anifowoshe StreetVictoria IslandLagosNigeria

Tel: +234 1 277 0600

Accugas Limited7 Anifowoshe StreetVictoria IslandLagosNigeria

Tel: +234 1 277 0600

United KingdomSeven Energy International Limited4th Floor 6 Chesterfield GardensLondon W1J 5BQUnited Kingdom

Tel: +44 20 7518 3850Email: info@sevenenergy.com

www.sevenenergy.com