Seven Energy Annual Reports & Accounts 2014

Committed
to deliver
Annual Report 2014

Seven Energy is an indigenous Nigerian
oil and gas exploration, development,
production and distribution company,
with significant oil and gas assets and
integrated operational gas infrastructure
in the south east of Nigeria.
Go online:
www.sevenenergy.com
Our vision is to be Nigeria’s leading integrated gas
developer and supplier for power generation and
industrial consumption, with a reputation for quality
and reliability, operating to the highest operational
and social standards.
Read more in:
At a glance
p04

Being a reliable and valued partner
Read more in:
Our strategy
p16
Generating and sharing wealth
Read more in:
Corporate social
responsibility
p42
Driving and expanding industrialisation
Read more in:
Business model
p08
Independent auditor’s report to the Directors
of Seven Energy International Limited 61
Consolidated statement
of comprehensive income 62
Consolidated balance sheet 63
Consolidated statement of changes in equity 64
Consolidated cash flow statement 65
Notes to the consolidated financial statements 66
Glossary of terms 100
Shareholders’ information 102
Overview 48
Board of Directors 50
Board Committees 53
Senior Management 54
Directors’ report 56
Remuneration report 58
Operational review:
South east Niger Delta 24
North west Niger Delta 28
Anambra basin 32
Financial review 34
Risk management 38
Corporate social responsibility 42
Highlights 02
Group overview 04
Chairman’s statement 06
Business model 08
Market overview 12
Chief Executive’s statement 14
Our strategy 16
Key performance indicators 20
Strategic report
Financial Statements
Operational and
financial review
Corporate governance
01Seven Energy Annual Report 2014
FinancialStatementsCorporategovernanceOperationalandfinancialreviewStrategicreport

• First commercial gas deliveries commenced in January
2014, providing gas to Ibom Power
• Substantially completed the south east Niger Delta gas
infrastructure, including the Uquo gas processing facility
and the 37 km Uquo to Oron pipeline
• Gross average oil production of 52,500 bopd (2013:
51,600 bopd) from OMLs 4, 38 41; net entitlement
of 15,800 bopd (2013: 10,400 bopd)
• Secured substantial appraisal acreage in the Anambra
basin region with significant gas resource potential
• First oil deliveries to ExxonMobil’s Qua Iboe terminal
commenced from Uquo and Stubb Creek fields in Q1 2015
• Diversified our customer base, with five gas sales
agreements in place with customers in the south
east Niger Delta region by end of Q1 2015
We have achieved this across our operations, significantly strengthening our
business through increased production and reserves, combined with securing
enhanced debt facilities.
Continued strong performance
Read more in:
Operational review
p22
N89m
funding for community projects across
our eight Local Government Areas (2014)
Corporate social
responsibility highlights
Read more in:
Financial review
p34
+17%
increase in net 2P plus 2C reserves
and resources
414 MMboe 2014 vs 354 MMboe 2013
$273m
EBITDAX in 2014 vs $202m 2013
11.7m hours
reached without a lost time incident by
the end of 2014
$55m
profit after tax vs $39m in 2013
Highlights
Seven Energy Annual Report 201402

33 people
trained through our projects in 2014
28%
of our workforce are female
Read more in:
Key performance indicators
p20
Read more in:
Corporate social responsibility
p42
Operational and commercial highlights
• Accumulated 11.7 million man hours
without a lost time incident, a serious
HSE related incident or a reportable
environmental spill or loss of containment
• Commercial deliveries of gas commenced
in January 2014 to Ibom Power
• Commenced gas supply to the Unicem
cement factory utilising our own gas
production from the Uquo field
• Average gas deliveries of 23 MMcfpd
during 2014
• Continued growth in gross production
from OMLs 4, 38 41 with average gross
oil production of 52,500 bopd (2013:
51,600 bopd); net entitlement 15,800
bopd (2013: 10,400 bopd)
• Construction of Train 2 of the Uquo gas
processing facility completed providing
an additional 100 MMcfpd processing
capacity, taking the total to 200 MMcfpd
• Completed the 37 km Uquo to Oron
gas pipeline taking our cumulative gas
distribution pipeline network up to
227 km in total
• Entered into two new gas sales
agreements with Alaoji Generation
Company Limited and Notore Chemical
Industries PLC in January 2015
• Successfully completed and brought
on-stream two new gas wells, Uquo 7
and Uquo 8, located at the Uquo field
resulting in the availability of four gas
wells to meet gas sales commitments
• FUN oil gathering manifold completed
in 2015 and commenced oil deliveries
to ExxonMobil’s Qua Iboe terminal from
the Stubb Creek and Uquo fields
• Calabar NIPP commenced taking gas
deliveries in 2015 to begin commissioning
of their five turbines
Financial highlights
• EBITDAX increased by 35% to $273 million
during the year (2013: $202 million)
• Profit after tax up 41% to $55 million
(2013: $39 million)
• Short-term borrowings decreased to
15% ($113 million) of total net borrowings
at the end of 2014; being 68% in 2013
($359 million)
• Completed the placement of $400
million of Senior Secured Notes, of
which $100 million was through a
private placement with the Nigeria
Sovereign Investment Authority
• Secured $255 million of new equity
investments from Temasek, the
International Finance Corporation and
the IFC African, Latin American and
Caribbean Fund
• Entered into an additional $170 million
Acquisition Finance Facility to finance
the acquisition of East Horizon Gas
Company Limited
• Capital investment of $912 million during
the year, comprising $408 million in
OMLs, 4, 38 41 $334 million related to
the acquisitions of OPLs 905, 907 917
licence interests and the East Horizon gas
pipeline, plus $166 million in the south
east Niger Delta gas infrastructure business
and $4 million in other capital expenditure
Corporate highlights
• Acquired the East Horizon Gas Company
Limited, which includes the 128 km East
Horizon gas pipeline and a gas sales
agreement with Unicem
• Acquired SRL 905 Holdings Limited, and in
2015, Gas Transmission and Power Limited
giving a 90% licence interest currently in
OPL 905 located in the Anambra basin
• Acquired a 22.5% interest in Afren Global
Energy Resources Limited which holds a
41% and 42% licence interest in OPLs 907
917 respectively.
Seven Energy Annual Report 2014 03
Strategicreport

Lagos
ELPS-WAGP
Nigeria
Legend
Seven Energy licence areas
Seven Energy marginal ﬁeld areas
Licence areas
NPDC Strategic Alliance
Agreement areas
Oil and gas ﬁelds
Seven Energy gas pipeline
(under construction)
Seven Energy oil pipeline
NGC gas pipeline
3rd party oil pipeline
3rd party gas pipeline
Areas of core interest
Seven Energy customer (power station)
Seven Energy customer (industrial)
Seven Energy customer (export terminal)
Uquo gas processsing facility
Major road
At a glance
Seven Energy is an indigenous Nigerian oil and gas exploration, development,
production and distribution company, with significant oil and gas assets and
integrated operational gas infrastructure.
Our operation locations
South east Niger Delta
The south east Niger Delta
is Seven Energy’s flagship
gas infrastructure business.
Through its wholly owned
midstream business, Accugas,
the Group owns and
operates gas processing
capacity, at the Uquo
gas processing facility,
processing gas from the
Uquo and Stubb Creek
fields. It also runs a pipeline
distribution network,
delivering to a diversified
customer base.
– 130 MMboe net1
2P + 2C
(Uquo and Stubb Creek)
– 200 MMcfpd
processing capacity
– 227 km gas
distribution pipelines
– Five gas sales contracts
signed by Q1 2015, of
which four were receiving
gas as at April 2015
North west Niger Delta
Seven Energy entered into a
Strategic Alliance Agreement
in 2010 with the Nigerian
Petroleum Development
Company, where we agreed
to pay all of NPDC’s costs in
connection with the
development of OMLs 4,
38 41 and to provide
technical services in exchange
for a share of NPDC’s
production from its 55%
licence interest. Since entering
into the agreement, annual
average gross production at
the OMLs has increased from
25,700 bopd in 2010
to 52,500 bopd in 2014;
an increase of over 100%.
– 221 MMboe net2
2P + 2C
(OMLs 4, 38 41)
– 52,500 bopd average gross
production during 2014
– 3.7 MMbbl of oil lifted
in 2014
Anambra basin
In 2014, Seven Energy
increased its footprint in
south east Nigeria, with
the acquisition of a 40%
licence interest in OPL 905
(increasing to a 90% licence
interest in 2015 following the
acquisition of GTPL), located
in the Anambra basin. Since
then we have increased
our interest in the area,
acquiring a 22.5% share of
AGER, which owns a 41%
and 42% licence interest in
OPLs 907 917 respectively.
The Anambra basin is a
relatively underdeveloped
region rich in gas resources,
which we look to harness to
provide gas for local industry
in the medium- to long-term.
– 63 MMboe net1
2C
(OPLs 905, 907 917)
– Existing gas discoveries
– Appraisal programme
in preparation
Read more in:
Operational review:
South east Niger Delta
p24
Read more in:
Operational review:
North west Niger Delta
p28
Read more in:
Operational review:
Anambra basin
p32
1 Net working interest
2 Net entitlement from indirect interest
Group overview

2P 220 MMboe (1,318 Bcfe)
2C 194 MMboe (1,165 Bcfe) Oil 31%
Gas 69%
Anambra basin
Benin City
Orogho
Okporhuru
Uquo ﬁeld
Stubb Creek
ﬁeld
Sapele
Ovhor
Amukpe
Oben
Port
Harcourt
Calabar
Warri Owerri
Aba
Ikot
Abasi
Ukanafun
Creek Town
Uyo
Oron
Nsukka
Onitsha
Enugu
OPL 907
OPL 905
OPL 917
Umuahia
North west
South east
OML 4
OML 13
OML 14
North
kilometres 1000
OML 41
OML 38
Ajaokuta
Niger
Ibom Power
UniCem
Forcados Terminal
Calabar
Alaoji
Notore
Qua Iboe
terminal
2P + 2C net reserves and resources Oil vs gas: net 2P + 2C
414MMboe
2P + 2C net reserves and resources
Strategicreport

Continuing good progress
against a challenging backdrop
We continue to make good progress on many
fronts as we position ourselves as the leading
fully integrated supplier of gas to the domestic
market in Nigeria. This progress has been
frustrated on occasion by factors outside of
our control which have unfortunately had an
impact on completion of key projects and on
financial performance. That said, the Uquo
and Stubb Creek fields are now in production
and we have gas contracts in place to supply
up to 280 MMcfpd, so the strength of our
business model is now being realised.
Corporate development
In March 2014, we acquired East Horizon Gas
Company, which operates the 128 km East
Horizon gas pipeline, running through Akwa
Ibom and Cross Rivers states, and has a 25
MMcfpd long-term gas sales agreement with
Unicem, Nigeria’s third largest cement factory,
in Cross Rivers state. This consolidates our
dominant midstream position in south east
Nigeria, expanding the reach of our distribution
network to new markets and diversifying our
customer base. We are already realising the
benefits of this acquisition as we can now
supply Uquo gas to the cement factory rather
than gas purchased from third parties, thus
securing the full value chain, along with
providing an alternative supply route for gas
to Calabar NIPP.
During 2014 and in early 2015, we also
completed acquisitions of various licence
interests in the Anambra basin. This is an
undeveloped gas-rich basin to the north
of the Niger Delta, in the industrial heartland of
Nigeria. We have acquired operated interests in
three blocks, OPLs 905, 907 917, all having
undeveloped gas discoveries and substantial
additional gas resource potential. We see
this as a significant opportunity for long-term
growth, by expanding our domestic gas
footprint at a low entry cost.
Strengthening the balance sheet
During 2014, we strengthened the balance
sheet, raising additional equity and debt, and
refinancing debt facilities to an extended
maturity date. We raised $255 million of
additional equity from Temasek, IFC and the
IFC ALAC Fund, to support our growth. This
was a strong endorsement, from these three
prominent international investment funds,
of our business plan and the leading role we
are playing in the fast developing Nigerian
domestic gas market. In October 2014, we
issued $400 million Senior Secured Loan Notes
and Private Bond, using these proceeds to
repay shorter term borrowings.
Financial performance
The Group’s financial performance continued
to improve in 2014, with revenue growing
10% to $378 million (2013: $345 million),
EBITDAX 35% higher at $273 million (2013:
$202 million), and profit after tax 41% higher
at $55 million (2013: $39 million). However, net
cash flow generated from operations fell by
18% to $141 million (2013: $172 million),
predominantly as a result of an increased
underlift position during the year, offset by an
increase in an operational expenditure payable.
Capital investment in 2014 amounted to $912
million (2013: $508 million), of which $408
million (2013: $338 million) related to OMLs 4,
38 41.
Board and corporate governance
As I have reported previously, we remain
committed to the highest standards of
corporate governance and during 2014
we continued to strengthen our Board.
We appointed three additional Non-executive
Directors: Clare Spottiswoode, Fidelis Oditah
and Cyril Odu, all of whom add a wealth of
relevant experience to our Board. In January
2015, Dale Rollins was also appointed as a
Non-executive Director.
“We are making good progress
in developing our business
to take advantage of the
growth opportunities in the
domestic gas market.”
Dr Andrew Jamieson OBE
Non-executive Chairman
Chairman’s statement

make concerted efforts to incorporate and
develop best practice into our daily activities,
to comply with national and international
standards such as those issued by IFC and
Global Reporting Initiative.
Outlook
We have continued to make very good
progress in developing our business and
creating a sustainable business model with
good growth prospects. We are clearly seeing
the growth opportunity in the domestic
market, with five large volume gas supply
contracts now in place. The sharp decline in
oil prices over the last six months has created
a challenging environment particularly as we
look to access additional capital, further details
It is with great regret I have to report the
death of Joshua Udofia, a Director of the
Company for over five years and one of
the founders of Seven Energy, as it now is.
The knowledge and wisdom he brought
to the Company will be sorely missed.
We recognise the important role all our
stakeholders play in our success. By listening to
their views, we are able to act responsibly and
put transparency at the heart of our business.
We remain committed to sustainability and the
health, safety and security of our workforce
and the communities affected by our
operations. Our goal is to be a leader amongst
our peers in all areas of CSR. We continue to
Read more in:
p46
The Board is committed to developing and applying
high standards of corporate governance both in the
management of its business and in its accountability
to stakeholders as a whole.
of which are provided in the financial review
and note 3 to the Financial Statements. It
remains our intention to gain deeper access to
global equity markets through an Initial Public
Offering on an international stock exchange,
and whilst current market conditions are not
conducive to this move, timing of an IPO
remains under constant review.
Finally, I would like to thank shareholders,
Board members, Management and
employees for their continued support,
contribution and commitment in these
exciting times.
Dr Andrew Jamieson OBE
Chairman
Dr Andrew Jamieson
OBE
Non-executive Chairman
Phillip Ihenacho
Chief Executive Officer
Ashley Dunster
Non-executive Director
Atul Gupta
Osam Iyahen
Michael Lynch-Bell
Cyril Odu
Dale Rollins
Appointed in 2015
Peter Gutman
Alternate Non-
executive Director
Dr Yemi Osindero
Fidelis Oditah
QC SAN
Clare Spottiswoode
CBE
Strategicreport

First-mover
We have a sustainable long-term
business model in a growing market
Funding
Prominent debt and
equity investors
Oil and gas reserves
Our own reserves or
access to third parties
Local knowledge and
management expertise
Significant indigenous,
in-country expertise
Partner relationships
Established relationships with
upstream joint venture partners,
contractors and customers
Availability of supply
Identify low risk exploration, appraisal and development
targets, or access to third party reserves
Proximate demand and growth potential
Establish long-term sales agreements with anchor customers
Seven Energy nurtures and adds relationships with both
indigenous companies and international oil companies,
delivering key benefits for employees, customers and
communities by acting as an active, reliable and valued
partner with excellent QHSSE/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.
Business model

An integrated model, connecting supply with demand in first-mover advantage
locations, where gas resources are undeveloped and there exists a growing gas
demand due to high dependence on imported petroleum products.
Read more in:
Operational and
financial review
p22
Read more in:
Corporate social
responsibility
p42
Read more in:
Corporate
governance
p46
Cash flow
Reinvested into
the business
Customer
satisfaction
Reliable supply
of quality gas
Licence to
operate
Proven track record
of delivery
Clean fuel
Our gas business
provides clean,
cheap fuel to
power Nigeria
Local economic
growth
Job creation
results in/leads to
improved standards
of living
Contract
management
Engage in secure
and economically
beneficial contracts
Exploration
and production
Actively developing or
seeking reserves to
meet our demand
Relationship
management
Working closely with
all our partners along
the value chain to
ensure timely delivery
Delivery
of oil
and gas
Construct
Integrated processing
and distribution network
giving control over
the infrastructure
Operate
High operational
standards, with
excellent safety record
Read more in:
Corporate social
responsibility
p42
Strategicreport

Power
station
Electricity transmission
network operator
Distribution
company
Processing
facility
Oil export
terminal
Gas receiving
facility
Production
stream
Sales quality
gas
Gas pipeline
Oil and gas
reserves
and resources
Residential
From exploration to the consumer
At every stage of Seven Energy’s operations we aim to improve Nigeria’s communities,
as well as the country as a whole, by maximising responsible production of the country’s
natural resources whilst minimising any effect on the environment.
Business model

Manufacturing
plants
Industry
414 MMboe
net 2P + 2C reserves and resources
227km
gas pipeline distribution network
200 MMcfpd
gas processing capacity
Gas pipelines
Laying of a transportation system
which consists of a network
of pipelines in which natural gas
travels at high pressure,
throughout the south east
Niger Delta.
Gas receiving facility
Facility where the gas
stream is separated into trains
where filtration, pressure
and temperature adjustment
takes place. The gas is metered
prior to being dispatched
to customers.
Oil and gas reserves
and resources
Identification, development
and production of proximate
crude oil and natural gas.
Processing facility
Construction of an industrial
facility to separate and process
the various hydrocarbons to
produce ‘sales quality’ dry natural
gas and its associated condensates.
Power stations
Taking gas for the generation
of electricity to power Nigerian
businesses and homes, including
Ibom Power, Calabar NIPP
and Alaoji.
Manufacturing plants
Taking gas either to power their
processes, in the case of the
Unicem cement factory, or as
feedstock, in the case of the
Notore fertiliser plant.
Oil exporters
IOCs who purchase crude and
refined oil products for exportation.
Electricity transmission
network operator
It owns and maintains a network
of transmission towers which are
steel structures with an overhead
power line to transmit electrical
energy at high voltage over
large distances.
Distribution company
It operates the distribution
network of towers and
cables that bring electricity
to residential, industrial and
commercial customers.
Seven Energy Our customers Other operators
Strategicreport

20202015 20252012
Power
Feedstock
Gas powered industries
Light domestic industries
5.2
7.2
3.6
1.8
AlgeriaAngola EgyptLibyaNigeria
2,322
1,801
1,575
988
714
This plan calls for the construction of
new cost competitive gas infrastructure,
including pipelines and processing facilities,
across the country, aiming to fulfil Nigeria’s
gas potential and meet growing domestic
energy demand by increasing domestic
power generation capacity.
The current and future gas landscape
Nigeria has the largest proved gas reserves
in Africa, of 179 Tcf (2013), with production
of only 3.5 Bcfpd (2013). However, Nigeria
has not yet capitalised on these gas reserves,
with only 14% being supplied to, and used
by, the domestic market. Approximately
38% of Nigeria’s gas production is exported
as LNG, 24% is flared, and the remainder
is re-injected, used as fuel, or processed
into liquefied petroleum gas or gas liquids.
In addition, Nigeria does not yet have the
processing and distribution infrastructure
to meet its potential demand. Of the existing
2,000 km network of gas pipelines, it is
estimated that only one third is used for
domestic consumption, with the remainder
used for LNG exports.
However, as a result of the Government’s
power infrastructure reforms, combined with
advantageous fuel substitution economics and
Nigeria’s economic growth prospects, domestic
gas demand in Nigeria is expected to grow at
an average of 11.3% a year from 2012 to 2025,
reaching 7.2 Bcfpd.
Changes in the oil sector
Nigeria holds the second largest oil reserves
in Africa, of 37.1 billion bbls (2013), and
is Africa’s largest producer of oil, with
production of 2.3 MMbopd in 2013. Most
of Nigeria’s oil is found in the Niger Delta area,
with additional reserves offshore in the Bight
of Benin, the Gulf of Guinea and the Bight
of Bonny. The Nigerian economy is heavily
dependent on the oil sector, which represents
over 96% of the country’s export earnings
and approximately 40% of the Nigerian
Government’s revenue.
Market highlights
Nigeria is Africa’s largest economy by GDP
Nigeria has the largest gas reserves in
Africa which are largely undeveloped,
with relatively low production levels
Strong local demand for power, driven
by population and economic growth
Nigeria – a growing opportunity
Nigeria is a rapidly growing economy with
the largest population in Africa. The pace
of economic growth is held back by a lack
of investment in infrastructure, and reliance
on expensive diesel for power generation.
This is being addressed by Government power
sector reforms aiming to unlock the largest
gas reserves in Africa. Allied to a shift in focus
towards offshore assets by international oil
companies, this presents a highly attractive
market environment for indigenous players
with significant reserves and a focus on gas.
Developing Nigeria’s power capacity
The pace of economic development,
although strong, has been constrained by
a lack of investment in power infrastructure,
leading to domestic power shortages, lack
of an affordable electricity supply and self
generation of power. Despite being a major
oil producer, Nigeria relies on expensive,
imported petroleum products to generate
power, at a cost of $17.5 billion year. The
country also imports approximately 62% of its
consumed petroleum products, largely in the
form of diesel, which is a far more expensive
and environmentally harmful fuel than gas.
The Nigerian Government has privatised the
existing power generation and distribution
companies, established a bulk buyer
of electricity and implemented a more
appropriate pricing framework. It has now
brought in several measures to encourage
private companies and institutions to invest
in the power sector, aiming to meet a target
of 40GW of generating capacity by 2020.
Most of this is expected to come from new
gas fired power stations.
However, Nigeria’s domestic gas supply
is currently inadequate for this power
generation target. Thus, the development
of gas supply for the domestic market is
a priority for the Nigerian Government,
as demonstrated by a number of reforms
and initiatives, including the Gas Master Plan.
Domestic demand for gas
Bcfpd
African oil production (2013)
Mbopd
Power sector reforms
driving gas demand
Market overview

International oil companies have been active
in Nigeria since the 1950s, and the Nigerian
National Petroleum Corporation has majority
stakes of between 50% and 60% in most
fields. The IOCs act as partners and operators
of these fields. However, since 2009, the IOCs
have shifted their focus towards large offshore
projects. As a result, a number of divestments
have taken place, and continue to create
opportunities for companies like Seven Energy
to increase their asset base in Nigeria. This
development, coupled with a strong political
backing for the development of the
indigenous oil industry, allows Seven Energy
to be a competitive participant in the
divestment process.
The Seven Energy opportunity
Having focused our efforts on acquiring,
developing and constructing oil and gas assets
and infrastructure in Nigeria, we believe we
have built the experience and knowledge to
allow us to overcome the challenges that face
oil and gas companies operating in onshore
Nigeria. In particular, we are well positioned
to take advantage of the anticipated growth
in domestic demand for gas and to pursue
any strategically attractive asset acquisition
opportunities that may arise.
1.3Tcf
Nigeria’s gas production 2013
(BP Statistical Review 2014)
179 Tcf
Nigeria’s proven gas reserves 2013
(BP Statistical Review 2014)
174m
Nigeria’s population,
the largest in Africa (World Bank)
$522bn
Nigeria’s GDP, the largest in Africa
(World Bank)
6.0%
Nigeria’s forecast average annual
economic growth from 2014 to 2017
(World Bank)
177 Bcf
Nigeria’s gas consumption 2010
(CIA World Factbook)
Government reforms to incentivise investment in the power sector, as well as to develop
the domestic gas supply market, mean demand for gas in Nigeria will grow strongly.
Currently, the region has significant proven gas reserves which are exported, flared or
remain largely undeveloped. Against a backdrop of economic growth and positive
demographic trends, Nigeria is becoming an attractive market for local gas players.
Strategicreport

Strategic update
I am proud to report that Seven Energy now
has five contracts to deliver gas to domestic
customers in Nigeria. At the start of 2014
we had two. Our vision to be the leading
supplier of gas to the Nigerian domestic power
market for power generation and industrial
consumption is gathering pace. Having
attained an average price of $94 per barrel for
our oil sales in 2014, seeing oil prices fall to
below $50 per barrel in early 2015 reaffirmed
to us the suitability of our strategy to develop
gas for sale to the Nigerian domestic market.
With a combination of our fixed price gas sales
and take-or-pay contracts, we look to provide
stability in a market that is currently uncertain
and volatile. Our strategy to provide gas for
domestic consumption is bearing fruit, having
provided gas to Ibom Power since the start of
2014, starting our own gas deliveries to
Unicem in late 2014, and gas deliveries to
Calabar NIPP and Notore Chemicals in early
2015. As we demonstrate our ability to deliver
gas to high specifications with reliability, we
are attracting new customers thanks to our
reputation for quality performance and our
first-mover advantage.
South east Niger Delta gas business
The Nigerian economy continued to grow
strongly during 2014, becoming Africa’s largest
economy. This is despite the inadequate supply
of domestic gas for power generation and
industrial use, which has had a negative
impact on the Nigerian economy due to the
need for costly fuel substitutes. The pace of
economic development continues to be
constrained by a lack of investment in Nigeria’s
power infrastructure and the absence of a
reliable and affordable electricity supply. With
limited competition, our expanding gas
processing and transportation infrastructure
means we are ideally positioned to reach a
larger distribution and demand area for our
own, but also, third party gas.
During 2014, we completed the acquisition
and integration of the East Horizon Gas
Company into our Group. We also reached
agreement with Niger Delta Power Holding
Company to construct a further section of
pipeline between Oron and Creek Town, thus
expanding our geographic reach over this
industrialised area of Nigeria. In addition, we
reached agreement with the Nigerian Gas
Company to transport gas from Ikot Abasi
through its pipelines to customers in the Port
Harcourt region, and also to deliver our own
gas into our East Horizon gas pipeline. We
are now able to transport gas to customers
covering an area from Port Harcourt in the
west, to Calabar in the east. Our strength is in
attracting customers to whom we can deliver
gas, taking advantage of our existing pipeline
network with limited or no additional capital
costs, as demonstrated in the recent cases.
This expansion and diversification of our
customer base significantly reduces our
exposure to the performance of any
one customer.
During 2014, we completed, as planned,
construction of the pipeline from Uquo
to Oron, to enable us to deliver gas to the
Calabar NIPP power station. Though we
had planned to start delivery by the end of
2014, we were delayed, as the third party
constructing the pipeline from Oron to Creek
Town fell behind schedule. It is a tribute
to the flexibility of our pipeline network that
we are able to deliver commissioning gas
to Calabar NIPP by our western route, and
a mark of our operational expertise and
financial strength that we have been able
to take over construction of the uncompleted
section of line. During 2015, we will progress
construction of this line and continue to
deliver gas to all our customers’ increasing
volumes in line with their capacity to accept
gas deliveries.
Phillip Ihenacho
“We aim to continue to develop
our business to achieve our goal
of being the leading supplier of
gas to the domestic market for
power and industrial consumption.”
Consolidating our strategic
position in the gas sector
Chief Executive’s statement

During the year we completed two wells,
Uquo 7 8, as gas producers which are
now producing gas at combined rates of
up to 85 MMcfpd, with estimated potential
of some 140 MMcfpd; a very satisfactory
result that confirms our expectations of this
large gas field. In addition, in early 2015 we
drilled an exploration well, Uquo North East-1
prospect, which encountered both gas and oil
reservoirs, achieving results ahead of our
expectations. We have suspended this well
while we study development options.
Anambra basin prospect
We are building our position in the Anambra
basin, a gas-rich basin, having acquired a
participating interest and operatorship of OPL
905 and adding interests in blocks OPL 907
and OPL 917. Our aim is to build a strong
acreage in this industrial heartland, from
where we plan to implement an integrated
exploration and development scheme to
commercialise gas across the region.
Oil production from Uquo
and Stubb Creek
We intended to begin oil production from
Uquo and Stubb Creek in 2014. In the event,
following delays in completing the connection
to ExxonMobil’s Qua Iboe Terminal, I am
pleased to report that we began production
from both fields in February 2015. We are
now evaluating development options for the
oil accumulation encountered in the Uquo
North East-1 prospect well.
Development of OMLs 4, 38 41
Our cooperation with Nigerian Petroleum
Development Company and Seplat on
developing the fields on these blocks has
continued to result in increased performance.
Though production over the year was
affected by downtime caused by damage to
the Trans Forcados pipeline, we now have an
alternative export route to the Warri refinery,
providing some mitigation. Gross production
rates reached 80,000 bopd in late 2014 for
the first time, affirming the potential of these
fields. During the year, the operator signed
a gas sales agreement with the 450 MW
Azura-Edo Independent Power Project,
which is a significant step in developing the
gas reserves of these blocks, providing the
opportunity to both increase revenue and
diversify production, once the processing
facilities and power plant are constructed.
Outlook
During the year we have continued to develop
and consolidate our strategic position in the
gas business in the south east Niger Delta,
and by expanding our customer base we have
diversified our risk profile. We aim to continue
to develop our business to achieve our goal
of being the leading supplier of gas to the
domestic market for power and industrial
consumption. In doing so we will play our part
in the growing prosperity of Nigeria, and its
development of a sustainable and diverse
economy that is less dependent on oil.
Phillip Ihenacho
+17%
increase in 2P+2C net reserves resources
414 MMboe 2014 vs 354 MMboe 2013
23 MMcfpd
average gas deliveries during 2014
vs nil 2013
11.7m hours
reached without a Lost Time Incident
(“LTI”) by the end of 2014
5gas sales agreements signed by Q1 2015
During 2014 we substantially completed our south east gas infrastructure and commenced
gas deliveries. We are now, in early 2015, delivering gas to two power stations and two
industrial customers, with deliveries to our fifth customer due to commence in Q2 2015.
We are playing our part in developing a sustainable and diverse economy in Nigeria that
is less dependent on oil.
Strategicreport

Our five strategic priorities
Integrated value chain
• Be a first mover into regions to build and operate production processing capacity and distribution infrastructure,
ensuring our ability to control the full value chain
• Control the full value chain, from wellhead to delivery, providing assurance to customers of a reliable,
quality gas supply; attracting a creditworthy customer base
• Locate and acquire oil reserves with near-term cash flow potential and gas resource upside
Market penetration
• Expand customer base beyond existing anchor customers to deliver gas to smaller volume, higher priced,
industrial off-takers
• Supply gas to generate a significant portion of Nigeria’s power and support the industrialsation of Nigeria’s
manufacturing sector
Access to reserves
• Enhance existing reserves and resources by investment into lower risk oil and gas exploration, appraisal
and development
• Maximise the use of our infrastructure by processing and delivering of third party gas
• Acquire oil reserves with near-term cash flow potential and accompanying gas resources upside
Stakeholder value
• Secure investment opportunities with sustainable returns to achieve predictable results and cash flows
• Identify and acquire interests in low cost undeveloped gas fields with clear monetisation capability,
predominantly lower risk onshore exploration activity
• Target all gas contracts being supported by payment guarantees
Operational excellence
• Comply with national and international operational standards
• Conduct operations in a responsible way in respect to both our external environment and the
safety of all stakeholders
• Continous improvement of corporate governance across all operations to effectively manage
and mitigate risk, investing in our people, policies and procedures
Our strategy

Capable of adding long-term sustainable value, underpinned
by targeted strategic objectives to achieve our vision of providing
gas to contribute to the economic growth of Nigeria.
Read more in:
Key performance
indicators
p20
Read more about
our approach to:
Risk management
p38
KPIs Relevant risks Progress
• Operating cash flow • Managing for growth
• Partnership relations
We completed the acquistion of the
128 km EHGP, and the construction
of the 37 km Uquo to Oron pipeline.
Processing capacity was increased to
200 MMcfpd with completion of
the second train of the Uquo gas
processing facility.
• Weighted average gas price • Managing for growth
• Gas off-takers
Through the acquisition of EHGC, we
added Unicem to our customer base,
increasing our weighted average gas
price and contracted gas volumes
by 25 MMcfpd. At the start of 2015,
we also added two new customers
increasing contracted gas volumes
by 50 MMcfpd.
• Net reserves and resources • Reserve replacement Two wells drilled at Uquo together
are capable of meeting current
levels of demand. Early 2015, oil
and gas deposits encountered at
Uquo NE-1 prospect. 24 wells drilled
at the OMLs, adding an additional
deliverability of 13,800 bopd.
• EBITDAX • Project execution
• Funding and treasury
management
• Gas off-takers
• Legislation and regulation
• Adverse media
• Bribery and corruption
Identified significant growth
opportunities in the underdeveloped
Anambra basin region, with
acquistions of licence interests
in OPLs 905, 907 917 for
low entry costs, meeting our
first-mover criteria.
• Total Recordable
Incidence Rate (TRIR)
• Partnership relations
• Employee considerations
• Project execution
• QHSSE/CSR
• Bribery and corruption
• Security
We have continued to maintain
an excellent safety record during
significant, potentially hazardous,
construction projects which
included the completion of
the Uquo gas processing facility
and a 37 km gas pipeline.
Strategicreport

Pipeline bypass
We completed the construction of the
1 km pipeline that bypasses the Ibom
Power power station which connects
our 62 km Uquo to Ikot Abasi pipeline
to the NGC pipeline, which runs up to
Ukanafun. Through negotiations as part
of the EHGC acquisition, we successfully
agreed to reverse the flow of gas through
NGC’s pipeline, which extended our
customer reach west to Port Harcourt
through access to the extensive third party
gas pipeline network.
Integrated value
chain and market
penetration
Our extended pipeline network enabled us
to diversify our customer base and engage
in two new gas sales agreements in 2015,
with the Notore fertiliser plant in Onne and
the Alaoji power station near Aba with
minimal extra capital expenditure.
Strategy in action

Strong financial
backing
We have always been proud of the high
quality of investors we have attracted
over the years and most recently in 2014,
we successfully raised $255 million of
equity from Temasek, the International
Finance Corporation (a member of the
World Bank Group), and the IFC African,
Latin American and Caribbean Fund.
Stakeholder value
We completed the placement of $300
million of Senior Secured Loan Notes and
$100 million Private Bond placed with the
Nigeria Sovereign Investment Authority.
In addition, the Group raised an Acquistion
Finance Facility of up to $170 million.
This demonstrates the support of
prominent institutions, and their
belief in our vision to become the
leading domestic gas supplier
in Nigeria.
Strategicreport

201420132012
354
414
363
201420132012
171.9
141.1
77.8
Delivering on our strategy
Definition
Cash flow from operations, before capital
expenditure and financing activities. It is an
indicator of the Group’s ability to generate
cash from its business operations.
Progress
Decreased during the year due to
increased underlift, offset by an increase
in operational expenditure payables.
Outlook
We expect to receive increased cash
flows from our gas customers, under
the take-or-pay contracts in place. This
may be offset by the challenging oil price
environment and timing of oil liftings
under the Strategic Alliance Agreement.
Risk management
Close control of expenditure and
monitoring of cashflows. In addition,
credit enhancing measures are sought
as part of gas sales agreements.
Definition
The Group’s net entitlement of proved and
probable 2P reserves plus 2C resources,
measuredinmillionofbarrelsofoilequivalent.
Progress
2P plus 2C net reserves and resources
increased by 17% year on year to 414
MMboe (2013: 354 MMboe). This was
due in part to the new acreage acquired
in the Anambra basin.
Outlook
The Group continues to look for low cost,
secure opportunities to increase its interest
in reserves and resources, whilst appraising
opportunities to convert our existing
resources into reserves.
Risk management
Detailed monitoring of supply and
demand constraints (reserves replacement,
processing and delivery capacity).
We measure our progress through five key performance measures that are closely
aligned with delivering on our strategy.
Measuring our success
Net reserves and resources
MMboe
Operating cash flow
$ million
During 2014, In addition to
our solid performance on our
key KPIs, Seven Energy saw
enhancement in gas production,
revenue and profits.
With deliveries in 2015 of first oil
from the Uquo and Stubb Creek
fields, the commencement of
deliveries to Calabar NIPP power
station and the diversification of
our customer base is expected to
provide, continued improvement
in our KPI measures is anticipated.
Key performance indicators
Market penetration
Access to reserves
Stakeholder value

201420132012
2.49
2.81
2.49
201420132012
201.3
273.4
33.9
2012
0.0
2013
0.0
2014
0.19
Definition
The weighted average contracted gas price
weighted by daily contracted gas volumes.
Progress
The Group has increased its weighted
average gas price through the diversification
of its customer base to include Unicem.
Outlook
The Group will continue to target
diversification of its customer base beyond
the power generation sector and into
the industrial sector to try to achieve the
best price for our reserves and resources.
Risk management
Targeted market research of areas of
demand and customer availbility at the
right price, to achieve best price for our
reserves and resources.
Definition
Profit or loss before finance costs,
investment revenue, foreign exchange gains
or losses, taxes, depreciation, depletion and
amortisation and unsuccessful exploration
costs and impairments.
Progress
Continued strong growth as a result
of increased production volumes and
production entitlement from the Strategic
Alliance Agreement, coupled with the
first year of gas revenues from the south
east Niger Delta region.
Outlook
Gas deliveries are anticipated to increase
in 2015, which will be potentially offset by
a reduction in our production entitlement
under the Strategic Alliance Agreement
due to the current drop in oil prices and
expected reduction in capital expenditures.
Risk management
Close operational review and monitoring
of key producing assets and their
development, combined with ongoing
assessment of market opportunities.
Definition
Determined by multiplying the total
recordable workplace incidents by
200,000 and dividing by the total hours
worked during year. Recordable workplace
incidences include fatalities, permanent
total disabilities, permanent partial
disabilities, lost time incidents, restricted
work cases and medical treatment cases
(excluding first aid cases). It is a measure
of the Group’s QHSSE/CSR performance.
Progress
The Group had three incidents during 2014,
none resulting in fatalities. With the level
of construction activity and the potentially
hazardous industry we operate in, the
Group maintains an excellent safety record.
Outlook
Seven Energy continues to monitor TRIR
closely. The Group is committed to retaining
a focus on QHSSE/CSR performance.
Risk management
Close and ongoing review of all QHSSE/
CSR policies and procedures, and
application thereof, including rigorous
incident reporting (including incident
analysis, follow-up, remedial action and
communications of learnings).
Read more in:
Financial review
p34
Weighted average gas price
$/mscf
EBITDAX
$ million
Total Recordable Incidence Rate (TRIR)
Strategicreport

Operational and
financial review
Operational review:
South east Niger Delta 24
North west Niger Delta 28
Anambra basin 32
Financial review 34
Risk management 38
Corporate social responsibility 42

Operationalandfinancialreview

Our assets in the south east Niger Delta
region consist of the Uquo and Stubb Creek
fields, and our major gas processing and
distribution infrastructure. All are close to
areas where there is significant demand for
gas from existing or planned power stations
and other industrial off-takers, around Ikot
Abasi, Calabar, Uyo, Aba and Port Harcourt.
These assets are also situated near to
ExxonMobil’s Qua Iboe export terminal.
Highlights
• First commercial gas deliveries in January 2014
• Commissioning of Train 2 of the Uquo gas processing facility, resulting in total processing
capacity of 200 MMcfpd in May 2014
• Mechanical completion of the 37 km, 24 inch Uquo to Oron pipeline in October 2014
• Delivery of own gas to the Unicem cement factory in November 2014
• Oil production from Uquo and Stubb Creek started in February 2015
South east
Niger Delta
Operational review

kilometres
North
0 40
Stubb
Creek field
Uquo field
Port
Harcourt
Aba
Ikot Abasi
Ukanafun
Creek Town
128km
62km
37km
23km
OML 13
OML 14
Oron
Calabar
Uyo
Legend
Seven Energy marginal
field areas
Licence areas
NGC gas pipeline
3rd party gas pipeline
Seven Energy customer
(power station)
(industrial)
(export terminal)
Uquo gas processsing facility
Demand areas
Seven Energy oil and
gas fields
Qua Iboe
terminal
Ibom Power
Alaoji
Calabar
UniCem
Notore
2 short-term
(12 months or less) take-or-pay contracts,
signed in 2015, adding 55 MMcfpd
130 MMboe
2P+2C net reserves and resources
200 MMcfpd
Uquo gas processing facility capacity
3 long-term
take-or-pay contracts totalling contracted gas
sales volumes of 1.4 Bcf from the end of 2014
Throughout 2014, we continued to develop our
gas processing and transportation infrastructure.
Most of these capital projects are now complete
and successfully operating, consolidating our
strong local position.
Achieving first gas
Notable successes in 2014 began in January, with the start
of commercial gas deliveries to the Ibom Power power
station in Akwa Ibom State under our 10 year take-or-pay
gas sales agreement. Through 2014, we supplied an
average of 14 MMcfpd, enabling the Ibom Power station
to generate up to 115 MW from its main turbine, total
production levels being limited due to only one of three
turbines being operational. The power station has total
generating capacity of 190 MW from three separate
turbines, with individual capacities of 115 MW, 38 MW and
38 MW. The main turbine uses approximately 25 MMcfpd
of gas when running. On completion of work on the
remaining two turbines, the power station will begin to
take its full contracted volumes of 43.5 MMcfpd.
In November 2014, we commenced deliveries of gas from
the Uquo field to the Unicem cement factory (prior to this
the Group was delivering third party gas supplied by NGC),
under a contract to deliver up to 25 MMcfpd. In February
2015 we commenced deliveries to the Notore fertiliser plant
under a short-term contract to deliver up to 25 MMcfpd
and commenced delivery of commissioning gas to the
Calabar NIPP power station.
Asset overview
Uquo field Stubb Creek
field
Total
Seven Licence interest 40% 51%1
Operator Frontier
Oil
Universal
Energy
2P + 2C gross gas reserves
and resources (Bcf)
729 503 1,232
2P + 2C gross oil reserves
and resources (MMbbl)
8 23 31
2P + 2C gross reserves
and resources (MMboe)
130 107 237
2P + 2C net reserves
76 54 130
Type of hydrocarbon Oil and gas Oil and gas
Status In production In production
1 Held by Universal Energy (Seven Energy holds a 62.5% interest in Universal Energy).

During 2015, whilst we construct this line
we are delivering gas to Calabar NIPP for its
commissioning programme via the western
route via Ikot Abasi and Ukanafun. On
completion of the Oron to Creek Town
pipeline we will increase deliveries to the full
contracted volumes of 131 MMcfpd via the
more direct easterly route.
Successful drilling campaigns
In October 2014, we successfully completed
Uquo wells 7 8, drilled in 2013 on the Uquo
field within OML 13. During Q1 2015, these
wells were fulfilling combined gas deliveries of
up to 85 MMcfpd, successfully meeting our daily
nominations. We now have four completed gas
production wells on the Uquo field which are
sufficient to meet our contractual needs in the
short term.
In February 2015, we drilled the Uquo North-
East 1 prospect in the Uquo field area to a
vertical depth of 7,576 feet, encountering gas
reservoirs as expected, as well as moderate oil
accumulations in twohorizons.Wehavenow
suspendedthewell,with plans to complete
pending an evaluation of oil and gas
development options.
Processing capacity ready to meet
delivery agreements
We completed the commissioning of Train 2
at our Uquo gas processing facility in May, which
brought the facility into full operational mode,
doubling the Group’s processing capacity to 200
MMcfpd. This achievement led to us receiving
recognition from Nigeria’s Federal Government
in August for our contribution to its Gas Master
Plan, with a Presidential visit to officially
commission the Uquo gas processing facility.
Oil production at Stubb Creek and
Uquo fields
In February 2015 we commenced oil production
from one well at the Uquo field and two wells at
the Stubb Creek field. This followed completion
of the FUN oil gathering manifold and its
connection to ExxonMobil’s export terminal at
Qua Iboe. We received our first lift of oil from
this terminal in April 2015.
Acquiring East Horizon Gas Company
In March 2014, we made a significant addition
to our gas distribution network by acquiring the
128 km East Horizon gas pipeline, through the
acquisition of the East Horizon Gas Company
LimitedfromOandoPLCforagrossconsideration
of$250million(netconsideration$137million).
ThepipelinerunsfromUkanafun in Akwa Ibom
State to the Unicem cement factory in Cross
River State. The acquisition of EHGC also
included a gas sales agreement with theUnicem
cementfactory,Nigeria’sthirdlargest cement
manufacturer, located at Mfamosing, in Cross
Rivers state. The contract with Unicem is a 20
year take-or-pay agreement to supply up to 25
MMcfpd, with a provision to increase to 50
MMcfpd when the upgrade of the factory,
due to be completed in 2016, doubles its
production to 5 million metric tonnes per year.
Enhancing our pipeline network
Following this acquisition, we agreed terms
with NGC to transport gas through their
pipelines from our gas receiving facility at the
Ibom Power power station to Ukanafun, and
from there to the west towards Port Harcourt
and also to the east through our East Horizon
gas pipeline. To facilitate this we completed a
1 km high pressure pipeline that bypasses the
Ibom Power station to connect our gas line to
the NGC line to Ukanafun. Completion of this
line enabled us to deliver gas from the Uquo
field to Unicem from November 2014; prior to
this we were delivering purchased third party
gas to Unicem.
Connection to Calabar NIPP
During 2014, we successfully completed the
constructionofthe37km,24inchpipelinefrom
Uquo to Oron in order to supply gas to Calabar
NIPP. In late 2014 it became apparent that
Calabar NIPP would not complete its
construction of the pipeline from the power
station to Oron and in response to this we took
over construction of the 26 km section of line
from Oron to Creek Town section at a cost of
approximately $90 million, which we expect
to complete in early 2016. In return for this we
have agreed a higher gas price with Calabar
NIPP for the duration of the 20 year contract
which provides us with a good return on the
additional capital investment.
Major customers
Seven Energy has five gas sales
agreements in place – three
long-term and two short-term,
providing stable, diversified
and long-term cash flows:
Ibom Power station
A 10 year 100% take-or-pay gas sales
agreement to supply the 190 MW Ibom
Power power station, near Ikot Abasi,
with 43.5 MMcfpd. The station is
owned by Ibom Power, which is
owned by Akwa Ibom State.
Calabar NIPP power station
agreement to supply the 560 MW Calabar
NIPP power station, near Calabar, with
131 MMcfpd. The station is owned by the
Calabar Electricity Generation Company.
Unicem
agreement, expiring in 2032, to supply
Unicem, a cement factory near Calabar.
EHGC is contracted to supply Unicem
with 25 MMcfpd, increasing to 50 MMcfpd
in 2016 with the completion of the
factory upgrade. Unicem is owned by
a consortium of Flour Mills of Nigeria,
Lafarge and Holcim.
Alaoji Power station
A one year 80% take-or-pay gas sales
agreement to supply the 1 GW Alaoji
Power station with 30 MMcfpd.
Notore fertilizer station
A six month 80% take-or-pay gas
sales agreement to supply the Notore
fertiliser plant with 25 MMcfpd of gas
as feedstock.
Operational review South east Niger Delta continued

Ukanafun
Junction
26 km
24 inch pipeline
8 km
4 inch
pipeline
2 km 10 inch pipeline
Oron tie-in
26 km
24 inch pipeline
128 km 18 inch East Horizon
pipeline
62km 18 inch
Uquo to Ikot Abasi pipeline
31 km
6 inch pipeline
23 km
6 inch pipeline
37 km
24 inch Uquo to Oron pipeline
Ibom Power
power station
190MW
Calabar NIPP
power station
560MW
Gas Receiving
Facility
FUN
oil gathering manifold
Qua Iboe
terminal
Gas well
Oil well
Oil and gas well
Third-party pipeline
Uquo Gas
Processing Facility
Uquo ﬁeld
Stubb
Creek
ﬁeld
Stubb Creek
Early Production
Facility
Calabar Junction
Unicem
Notore fertiliser plant
The Group, through Accugas, entered into
a short-term GSA with, and commenced
delivery in 2015 to, Notore Chemical
Industries PLC, a leading Nigerian fertiliser
and agro-allied company.
Gas is being supplied at a rate of
25 MMcfpd as part of the feedstock
to Notore’s fertiliser plant. By this supply
arrangement, Seven Energy utilises its
existing capacity and proven track record
to target strategically located customers.
“This milestone represents
another significant step in our
effort to increase domestic gas
supply and utilisation of gas for
the good of Nigeria, its people
and its economy”.
Steve Tierney
Managing Director, Accugas
Seven Energy’s midstream infrastructure

OMLs 4, 38 41 are located in the north
west Niger Delta, near established oil and
gas infrastructure, giving access to Shell’s
Forcados export terminal for oil and to
major demand centres for gas, including
Lagos, Benin City and Ajaokuta.
North west
Niger Delta
Highlights
• Average gross production during 2014 of 52,500 bopd (2013: 51,600 bopd).
This average was impacted by downtime on the Trans Forcados pipeline
• Net production entitlement to Seven Energy of 15,800 bopd (2013: 10,400 bopd)
• 24 wells drilled during 2014 (2013: 15)
Operational review

North
kilometres 200
OML 4
OML 41
OML 38
Benin
River
Umutu
Asuokpu
Ogume
Nugu
Olokun
Ubaleme
Okoporo
Okwefe
Omoja
Ijomi
Jesse
Mosogar
Oriomu
Orogho
Sapele
Amukpe
Ovhor
Okporhuru
Oben
Legend
Oil pipeline
Third party marginal field
NPDC Strategic Alliance
Agreement areas
Gas pipeline
Oil field
Gas field
Prospect/discovery
Asset overview
OMLs 4, 38 41
Licence interest 55%1
Operator Seplat
2P + 2C gross gas reserves
and resources (Bcf)
2,286
2P + 2C gross oil reserves
and resources (MMbbl)
427
2P + 2C gross reserves
808
2P + 2C net reserves
222
Type of hydrocarbon Oil and gas
Status In production
1 Indirect interest via the Strategic Alliance Agreement with NPDC.
We hold a diversified portfolio of onshore oil and gas
interests in the north west Niger Delta region, with
substantial reserves and access to export facilities and
demand centres. Our focus has been to support NPDC
effectively in continuing to develop OMLs 4, 38 41.
52,500 bopd
average gross oil production
222 MMboe
2P + 2C net reserves and resources
15,800 bopd
average net oil production entitlement
Intensive field development programme
In 2014, we continued the intensive development
programme at the OMLs, drilling 24 wells and utilising six
rigs. The drilling programme included 14 development
wells, four workover wells and six appraisal wells, bringing
on-stream additional deliverability of some 13,800 bopd
during the year.
With the growing development activity, expenditure also
rose, with our capital additions increasing 21% to $408
million during the year, from $338 million in 2013. We are
reducing the work programme for 2015 due to the current
oil price, in particular reducing the number of drilling rigs
operating at the fields. Currently three rigs are operating.

We continue to receive regular liftings of
our entitlement to oil production from these
fields under our agreement with NPDC, lifting
3.7 MMbbl during 2014 (2013: 3.1 MMbbl),
which achieved an average sales price of
US$94.3 bbl (2013: US$110.8 bbl). In 2014,
our net production entitlement was 15,800
bopd, an increase of 52% compared to
10,400 bopd in 2013. As our oil entitlement
is lifted on delivery at Shell’s Forcados export
terminal, we are shielded from certain risks
and losses associated with bunkering and
transmission prior to delivery.
Asset disposal
During the year, the Group completed the sale
of its participating interest in the Matsogo
field to its joint venture partner, Chorus
Energy, for $7 million.
Production potential increased
We continue to create shareholder value
by deriving production from six fields: Oben,
Sapele, Ovhor, Amukpe, Okporhuru and
Orogho. Average gross production increased
from 51,600 bopd in 2013 to 52,500 bopd
in 2014. Daily production rates reached
80,000 bopd toward the end of 2014,
compared with 60,000 bopd during 2013,
a 33% increase, with the additional
production from the 24 new oil wells drilled
during the year. However, with problems at
the Trans Forcados pipeline, there was more
downtime than during 2013, which is why
there was only a small increase in average
daily production.
Operational review North west Niger Delta continued

Highlights
• Acquired significant acreage positions offering significant
gas upside covering interests in OPLs 905, 907 917
• Industrial region offering attractive gas market potential
OPLs 905, 907 917 are located in the
Anambra basin region of Nigeria. The
fields contain existing seismic evaluations
and undeveloped gas discoveries and
are located in a developed industrial
part of Nigeria offering significant scope
to develop a gas market for power and
industrial use.
Anambra basin
Operational review

OPL 905
OPL 916
OPL 908
OPL 906
OPL 903
OPL 902
OPL 910 OPL 911
OPL 207
OPL 228
OPL 135
OPL 206
OPL 203
6º30”E 7º00”E 7º30”E
6º30”N
6º00”N
OPL 915
OPL 201 OPL 901
OPL 914
OPL 907
OPL 917
kilometres 250
Niger
M
am
u
Aboine
Anambra
Enugu
Eha-Amufu
Awka
Onitsha
Nsukka
Asaba
Aiddo 1
Ikem 1
Adaobi 1
Ubulu 1
Nemomai 1
Adoﬁ River 2
Nsukwa1
Igbariam 1
Ajire 1
Alo 1
Nzam 1
Okpo 1
3
2
Anambra River 1
Akukwa 1
Ogbabu 1
Ugueme 4
Ishkago 1
3
Mbala 1,2
Amansiodo 1
2
Iji 1
Ihandiagu 1
Legend
Other
Oil discovery
Towns / Villages
Gas discovery
License
Asset overview
OPL 905 OPL 907 OPL 917
Licence interest 90%1
41%2
42%2
Operator GTPL AGER AGER
2C gross gas resources
(Bcf)
337 183 337
2C gross resources
(MMboe)
56 31 56
2C net resources
(MMboe)
42 9 12
Type of hydrocarbon Gas Gas Gas
Status Undeveloped Undeveloped Undeveloped
1 Held by GTPL (50%) and SRL Holdings (40%).
2 Held by AGER (Seven Energy holds a 22.5% shareholding in AGER).
With significant gas potential to be developed to
serve the surrounding areas of industrial growth and
high demand, we have been focusing on acquisitions
to capitalise on first-mover advantage in this region.
Building the gas resource base
In January 2014, we completed the acquisition of SRL 905
Holdings Limited, which holds a 40% licence interest in OPL
905. In addition, following the acquisition of GTPL in 2015,
the Group now holds an additional 50% licence interest.
With existing seismic and two exploratory wells previously
drilled, this fits our target profile of low cost access to low
risk evaluation and exploration, with the aim of growing our
reserve base. The gross recoverable 2C resources at OPL 905
are estimated to be 337 Bcf.
During the remainder of 2014, and into 2015, we continued
to build on our position in the region with acquisitions in
further licence areas with existing seismic and exploration
wells drilled. This included acquiring a 22.5% shareholding
in AGER, which holds a 41% and 42% licence interest in
OPLs 907 917 respectively. A work programme is being
prepared to evaluate the potential of these gas prone blocks.
A growing market opportunity
Through these acquisitions of undeveloped gas resources,
we are looking at a long-term development programme to
grow market share by replicating our south east Niger Delta
business model. Our aim is to harness Nigeria’s vast potential
gas resources to provide vital energy to power the growth of
this industrial heartland.
We intend to undertake additional exploration activities on
the fields in the near-term, including acquisition of 2D and
3D seismic data, followed by drilling exploration wells
and testing the existing gas discoveries.

Our performance
In a challenging environment for the oil and gas industry we
have strengthened our balance sheet through an equity raise
and a placement of Senior Secured Loan Notes and Private Bond,
and continued improvement in our financial performance.
Revenue
In 2014, revenue increased by 10% to
$378 million (2013: $345 million). The growth
in revenue was principally due to the
commencement of commercial gas deliveries
to the Ibom Power power station and the
Unicem cement factory, following the
acquisition of East Horizon Gas Company
on 31 March 2014.
Oil revenues generated from OMLs 4, 38 41
under the Strategic Alliance Agreement with
NPDC were largely unchanged, year on year,
at $344 million (2013: $344 million). The
benefit from an increase in the number of
lifted barrels to 3.7 MMbbls (2013: 3.1
MMbbls) was offset by a reduction in average
realised prices for the year of $94 per bbl
(2013: $111 per bbl). Gas revenues to Ibom
Power and Unicem amounted to $33 million
(2013: $nil) at an average delivery rate of
23 MMcfpd for the year.
Cost of sales and depletion
Cost of sales, comprising production expenses
and increase in underlift, decreased from $101
million to $41 million. Production expenses
increased by $61 million to $232 million (2013:
$171 million). The increase reflected the
greater production volumes at the OMLs and
commencement of gas production and gas
purchases associated with deliveries to Ibom
Power and Unicem respectively. The increase
in underlift was $191 million (2013: $71
million) which reflected unlifted production
entitlement under the Strategic Alliance
Agreement. Further details of the mechansim
for determining the Group’s production
entitlement under the Strategic Alliance
Agreement can be found in note 4 to the
Financial Statements.
Depletion increased by $54 million to $122
million (2013: $68 million), reflecting the
significant increase in production entitlement
at the OMLs, gas production at the Uquo
field and depletion of infrastructure assets
including the Uquo gas processing facility,
gas receiving facility at Ikot Abasi and our
network of gas pipelines.
EBITDA and EBITDAX
EBITDA increased by $77 million from
$196 million in 2013 to $273 million in 2014.
EBITDAX was also $273 million for 2014
(2013: $202 million), increasing by $71 million.
2014
$m
2013
$m
Operating profit
Add back:
148 126
– Depletion 122 68
– Depreciation
and amortisation 3 2
EBITDA 273 196
Add back:
– Impairment charge – 6
EBITDAX 273 202
This improvement in EBITDA and EBITDAX
in 2014 was principally due to the increased
production volumes and production
entitlement from the Strategic Alliance
Agreement coupled with the first year of
gas revenues, generated from Ibom Power
and Unicem gas sales contracts. This was
offset by increased administrative expenses
from $43 million in 2013 to $59 million
in 2014, as the Group continued to build its
operational, technical and financial capabilities
to manage and develop its increasing
portfolio of assets together with increased
costs associated with business development
opportunities and other corporate costs.
Finance costs
During the year Seven Energy continued
to strengthen its capital structure. In October
2014, the Group issued $400 million, Senior
Secured Loan Notes and Private Bond, the
proceeds of which were used to repay the
Group’s Reserve Based Lending Facility,
Convertible Bond, Working Capital Facility
and Discount House Loan Facility. In addition,
the Group secured an Acquisition Finance
Facility of up to $170 million which was
used to finance the acquisition of East
Horizon Gas Company. As a result of its
new and enlarged debt facilities, additional
debt redemption costs, and write-off of
unamortised finance expenses, Seven
Energy’s net finance costs increased by
$38 million to $76 million (2013: $38 million).
Tax
In 2014, the Group incurred a total net tax
charge of $26 million (2013: $49 million).
This consisted of a deferred tax charge
of $26 million, mainly due to profits arising
from the Strategic Alliance Agreement, offset
by the recognition of deferred tax assets
(mainly due to recognising capital allowances
in the Accugas Limited subsidiary).
Profit for the year
The Group recorded a profit after tax
for the year ended 31 December 2014
of $55 million (2013: $39 million), a year
on year increase of 41%.
Capital expenditure
Seven Energy continued to make significant
investment in both exploration and
development of its upstream and midstream
assets, and also in company acquisitions.
Total capital investment amounted to
$912 million in 2014 (2013: $508 million).
Set out below is a breakdown of this capital
investment by principal assets:
2014
$m
2013
$m
North west Niger Delta 408 338
South east Niger Delta 166 168
Other 4 2
Total capital additions 578 508
East Horizon Gas Company
acquisition
270 -
Suntera (OPL 905) acquisition 64 -
Total capital investment 912 508
In particular, $408 million (2013: $338 million)
was provided for the development of
the OMLs under the Strategic Alliance
Agreement. During 2014, a total of 24
(2013: 15) wells were worked-over or drilled
on the OMLs. In addition, Seven Energy
continued its investment programme in
the south east Niger Delta, with additions to
both its upstream and infrastructure assets.
Financial review

11.7m hours
reached without a Lost Time Incident
(“LTI”) by the end of 2014
$912m
Total capital investment
vs $508m in 2013
During 2014, Seven Energy continued its
drilling programme at the Uquo Field at wells 7
8 which were completed in October 2014.
In addition, drilling commenced at the Uquo
North–East 1 prospect. The Uquo to Oron
gas pipeline, to supply the Calabar NIPP
power station, was mechanically completed
in October 2014. The acquisition of the East
Horizon Gas Company and Suntera (OPL 905)
resulted in capital investments amounting to
$270 million and $64 million respectively.
Acquisitions
On 31 January 2014, Seven Energy acquired
a 40% licence interest in OPL 905 through its
acquisition of the entire share capital of SRL
905 Holdings Limited. Total consideration
amounted to $48 million.
On 31 March 2014, Seven Energy acquired
the entire issued share capital of East Horizon
Gas Company Limited, which operates the
128 km East Horizon gas pipeline through
Akwa Ibom and Cross Rivers states in the
south east Niger Delta and has a gas sales
agreement with the Unicem cement factory
to supply gas up to 25 MMcfpd, increasing
to 50 MMcfpd in 2016, under a 20 year gas
sales agreement, expiring in 2032. Total net
consideration amounted to $137 million
(after taking into account assumed liabilities).
On 12 December 2014, the Group signed
a share purchase agreement with Global
Energy Company Limited to acquire up to
72.5% of the issued share capital of Afren
Global Energy Resources Limited, a Nigerian
oil and gas exploration and production
company. This company has a 41% and
42% license interest in OPL 907 and OPL 917
respectively and is located in the Anambra
basin, adjacent to OPL 905. On initial
acquisition only 22.5% of the share capital
was acquired, with the remaining 50% to
be acquired in 2015 following the re-
assignment of the company’s performance
bond to Seven Energy. The total expected
consideration is approximately $14 million.
Further details of these acquisitions are set
out in note 35 of the Financial Statements.
Cash flows and cash
At 31 December 2014, the Group had
cash balances of $38 million (2013: $50
million). The cash flow movements in
2013 and 2014 are summarised below:
2014
$m
2013
$m
Net cash provided
from operating activities
141 172
Net cash invested in
capital projects
(328) (324)
Acquisition of subsidiaries (151) –
Net cash inflow from
debt financing
174 228
Cash inflow from
equity financing
255 –
Net cash outflow
from financing costs
(102) (57)
Net cash (outflow)/inflow (11) 19
Effect of foreign exchange
rate changes
(1) (1)
Cash balance at start of year 50 32
Cash balance at end of year 38 50
Netcashprovidedfromoperatingactivitiesreduced
from $172 million to $141 million principally due
to an increase in underlift during the year, offset
by an increase in operational expenditure
payables. Acquisition of subsidiaries amounted
to $151 million (2013: $nil) related to the
purchase of EHGC and Suntera.
With respect to the OMLs there was a net cash
outflow of $11 million (2013: $92 million
inflow), primarily due to falling oil prices in the
second half of 2014, and an increase in the
amount of underlifted production entitlement.
Net cash inflow from debt financing of
$174 million (2013: $228 million) principally
reflected borrowings under the Acquisition
Finance Facility, Project Finance Facility and
the issue of Senior Secured Loan Notes and
Private Bond, offset by the repayment of
the Reserve Based Lending facility, Working
Capital Facility, Convertible Bond and Discount
House Loan Facility in October 2014.
$255 million (2013: $nil) was raised through
the issue of ICLNs as described below in the
section “Financing and capital structure”.
Net cash outflow from financing costs
increased to $102 million (2013: $57 million)
which reflected increased interest expense from
greater borrowing levels, together with issue
costs associated with the Senior Secured Loan
Notes and Private Bond, and the premium paid
on the repayment of the Convertible Bond.
Financing and capital structure
The Group has continued to strengthen
its financing and capital structure, through
new and enlarged debt facilities with
extended maturity profiles together with
the issuance of additional equity.
In March 2014, the Group supplemented
its existing Project Finance Facility with an
Acquisition Finance Facility of up to $170
million to finance the acquisition of EHGC.
On 10 October 2014, the Group issued
$300 million of Senior Secured Loan Notes
which were listed on the Irish Stock Exchange.
In addition, a further $100 million Private
Bond was placed with the Nigeria Sovereign
Investment Authority. The proceeds from
both of these issues were used to repay four
near-term facilities, as set out above. Further
details of the Group’s debt facilities are set
out in note 23 of the Financial Statements.
The maturity profile of the Group’s gross
borrowings at 31 December 2014 is set
out below:
2014
$m
2013
$m
Current
Amount due within one year 113 372
Non-current
Amount due after one but
within two years
57 44
Amount due after two but
within five years
239 93
Amount due after five years 400 44
Total gross borrowings 809 553

Seven Energy’s equity capital structure
comprises ordinary shares and ICLNs. During
the year, $255 million was raised from the
issue of new ICLNs for cash. In addition,
$33 million of ICLNs were issued to the
vendors of SRL 905 Holdings Limited as
part of the acquisition consideration.
Going concern basis
The financial position of the Group, its cash
flows and liquidity position are described
above. In addition, note 24 to the Financial
Statements includes the Group’s objectives,
policies and processes for managing its
capital, its financial risk management
objectives, details of its financial instruments
and its exposures to credit risk and liquidity risk.
The Group intends to fund its current and
future development projects and operations
using a combination of operating cash flows,
debt facilities and, from time to time, new
equity issues. The Group has in place the
Senior Secured Loan Notes, Private Bond,
Project Finance and Acquisition Finance
facilities, and Bank of Industry Loan Facility.
The Group is required to comply with
various ongoing financial and non-financial
covenants typical to facilities of this nature,
details of which are provided in note 23 to
the Financial Statements.
The Group’s ongoing funding requirements are
sensitive to significant changes in the timing of
cash calls from joint venture partners, the
frequency of its liftings from oil and gas sales
contracts together with the level of funding
available under debt facilities.
For the next 12 months, Seven Energy’s
funding requirements are based on the Group’s
2015 Annual Funding Plan which assumes:
• completion of the refinancing of the
Project Finance and Acquisition Finance
facilities into a single combined facility
resulting in the deferment of the current
amortisation profiles of both facilities for
at least 12 months; and
• securing between $50 million and $125
million of additional debt or equity funding.
Further details of the Group’s 2015 Annual
Funding Plan are set out in the “Going concern”
section of note 3 of the Financial Statements.
As reported in note 23 of the Financial
Statements, at the time of acquisition,
EHGC’s Bank of Industry Loan Facility was
not, and continues not to be, in compliance
with certain financial covenants in the loan
agreement. Whilst an informal waiver of this
non-compliance was received at the time
of acquisition, in the absence of a formal
waiver at 31 December 2014 this facility has
been disclosed within current borrowings.
EHGC expects to receive formal waiver
confirmation from the lenders that they do
not intend to demand immediate repayment
of the amounts due and will allow EHGC to
continue to repay in accordance with the
agreed repayment schedule.
As a result of these funding requirements
in the next 12 months and absent signed
commitments, the Directors acknowledge
that material uncertainties exist which
may cast significant doubt on the Company’s
and the Group’s ability to continue as
a going concern and, therefore, that the
Company and the Group may be unable
to realise their assets and discharge their
liabilities in the normal course of business.
Nevertheless, after making enquiries, and
considering both the uncertainties described
above and the status of discussions with
relevant lending banks and existing or
potential security holders, the Directors
have a reasonable expectation that the
Group and the Company have adequate
resources to continue in operational existence
for the foreseeable future. For these reasons,
they continue to adopt the going concern
basis in preparing the Financial Statements.
A summary of the Group’s debt facilities at 31 December 2014 is set out below:
Summary of
current debt facilities Purpose
Balance at
31 December 2014
$m
Maturity
date
Project Finance Facility Funding of Accugas processing and pipeline infrastructure 225 March 2020
Acquisition Finance Facility Funding the acquisition of EHGC 130 June 2019
Senior Secured Loan Notes General funding 300 October 2021
Private Bond General funding 100 October 2021
Bank of Industry Facility Funding of East Horizon pipeline 34 June 2017
UERL term loan Provided by Akwa Ibom Investment and Industrial
Promotion Council for Stubb Creek Field development
9 December 2018
Promissory Note Acquisitions of interests in OPL 907 917 11 June 2015
(or June 2016)
Total gross borrowings 809
Financial review continued

Effective risk management is essential if the
Group is to deliver on its strategic and operational
objectives whilst maintaining its excellent HSE
record. The Risk Register is the means by which
the Group’s principal risks are reported to the
Executive Committee and the Board
for review.
The Risk Register identifies those risks with the
potential to seriously affect the performance,
future prospects or reputation of the Group,
or prevent us from delivering on our strategic
objectives. It includes strategic, financial and
operational risks, together with external factors
over which the Board may have little or no
direct control. The Risk Register is updated
quarterly and identifies:
• the specific risks facing the Group
• likelihood of the risks materialising and
their potential impact on the business’s
strategic objectives
• the Group’s ability to reduce or control
the incident and impact of risks
• the risk profile by exposure and by type
• the extent and categories of risk which are
regarded as acceptable for the Group
to bear
Board of Directors
Executive Committee
Senior Management
Risk owners
Review and
recommendations
by the Internal Audit team and
assessment by the Governance
Board as to the effectiveness
of action plans and controls.
Identification of new risks
–– Identification and assessment of
new risks, including risk grading.
–– Formulation of mitigation plans
and assignment of review cycles.
–– Identification of key process
controls.
Updating of existing risks
–– Review and assessment
of existing risks.
–– Monitoring of progress against
agreed mitigation plans.
–– Re-evaluation of review cycle
or closing-out of risks.
2014 risks and uncertainties
Managing for growth: with a strategy focused on organic and acquisitive growth, external and internal factors
drive each investment decision to ensure that long-term value is created for all stakeholders. Risks are inherent
across the entire investment process.
Funding and treasury management: the Group relies on a number of capital sources for its operations and
availability of financing is essential to its future growth plans. Availability of financing, ongoing compliance with
financing obligations as well as ongoing liquidity are the main risks.
Project execution: the Group experienced high levels of activity across its key projects during 2014, including
construction and drilling activities. Project planning, execution and cost management are key risks, together with
QHSSE/CSR and community related risks.
Gas off-takers: core to the Group’s business proposition and capital structure are its long-term gas sales agreements.
Performance and payments by the customers are the main identified exposures.
Employee considerations: in view of the Group’s growth across its business, employee retention and recruitment
is a priority. In addition, communication across the business is vital to effectively share information and motivate staff
on the Group’s achievements.
Our continued focus
on identifying and
mitigating our risks is
evident in our strong
and improving KPIs.
Risk management framework
Short- to medium-term risks
Risks are inherent within every business environment. Seven Energy’s Board and senior
management are responsible for ensuring that risks facing the Group are identified,
assessed and managed to ensure creation and retention of shareholder value.
Risk management
Market penetration
Access to reserves
Stakeholder value

Probability
Impact
Gas
off-takers
Funding
and treasury
management
Reserves
replacement
Bribery and
corruption
Employee
considerations
Project
execution
Legislation
and
regulation
(2013)
Legislation
and
regulation
Adverse
media
Partnership
relations
(2013)
Partnership
relations
QHSSE/
community
Security
(2013)
Security
Managing
growth
Each identified risk is given a risk rating, based on the probability of the risk occurring and the estimated impact
on the business. The above analysis highlights the Group’s main identified risks. Further details of these risks are
set out in “Principal risks and uncertainties” on the following page.
Performance 2014 Objectives 2015 Strategic objectives
Achieved the effective integration of the acquisitions completed during 2014,
following a detailed commercial, financial, legal and technical due diligence
process. Further identified strategic upstream opportunities identified during 2014,
completed in early 2015.
Continue to look for opportunities targeting growth
opportunities that fit with a business model and strategic
objectives of stable growth in underdeveloped areas.
The capital structure was strengthened during 2014, through the successful
raising of $255 million of ICLNs in early 2014, placement of Senior Secured Loan
Notes and Private Bond used for refinancing, and an Acquisition Finance Facility to
fund new acquisitions.
Effective management of the Group’s liquidity position,
evaluating various options available to the Group.
Continue to apply a financially disciplined approach
to the way Seven Energy conducts its business.
Train 2 of the Uquo gas processing facility, the Uquo to Oron pipeline and drilling
projects have largely been delivered according to plan. Continued delays were
experienced with the FUN oil gathering manifold and connections to ExxonMobil’s
Qua Iboe export terminal, which was completed in February 2015.
Completion of Oron to Creek Town pipeline and
effectively manage the Group’s operations with a
continued strong focus on QHSSE/CSR and community
related issues.
Seven Energy commenced commercial gas deliveries to Ibom Power in January
2014 after a period of delay due to maintenance required at the power station.
Also during the year, we increased our customer base through acquisitions and
organic growth, utilising our processing and distribution capacity. Unfortunately,
we were unable to commence deliveries to Calabar due to their operational delays.
Continual close cooperation with gas off-takers to ensure
scheduled commencement of deliveries and timely
receipt of payment. Completion of a guarantee package
supported by the World Bank. Continued diversification
of customer base.
Benchmarked remuneration policies have been implemented following a benchmarking
review of pay equality across all employee band levels. Internal communication
strengthened, including quarterly staff bulletin and introduction of an intranet.
Ongoing review of remuneration policies, combined
with further strengthening of communication across
the organisation, including succession planning.
Risk distribution
To enable the Group to achieve its objectives, risk awareness, monitoring
and control is a continuous process that involves everyone in the organisation.

Principal risks and uncertainties
Key risk factor Responsibility Potential impact
Strategic risks
Reserve replacement
Assessment: High
(2013: High)
Chief Technical Officer Access to reserves and resources underpins Seven Energy’s business and its
growth aspirations.
Managing for growth
Assessment: Medium
(2013: Medium)
Chief Executive Officer With a strategy focused on organic and acquisitive growth, the Group is exposed
to risks that are inherent across the entire investment process.
Partnership relations
Assessment: Medium
(2013: Medium)
Chief Executive Officer The legal and day-to-day interpretation and status of working relations with the
Group’s various partners are key to the development and performance of Seven
Energy’s assets.
Employee
considerations
Assessment: Medium
(2013: Medium)
Chief Executive Officer Employee retention and recruitment is essential to support the Group’s growth
and development.
Operational risks
Project execution
Assessment: Medium
(2013: High)
Chief Operating Officer Seven Energy currently has a high level of project related activities. There are a
variety of risks associated with such projects, including delays, dependency on third
parties, obligations and cost overruns.
QHSSE/CSR
Assessment: Medium
(2013: Medium)
Chief Operating Officer The Group’s focus on upstream and midstream oil and gas activities exposes it to
a wide range of QHSSE/CSR related risks, including injury, loss of life, environmental
damage and community disturbances.
Financial risks
Funding and treasury
management
Assessment: High
(2013: High)
Chief Financial Officer The Group has high levels of debt with associated obligations and restrictions.
Therefore, there is a risk of breach and inability to undertake further financing
in support of the Group’s growth strategy.
Bribery and corruption
Assessment: Medium
(2013: Medium)
Chief Executive Officer Seven Energy operates in a region considered particularly prone to bribery
and corruption. Especially exposed are its contract and procurement operations.
External risks
Gas off-takers
Assessment: High
(2013: High)
Chief Executive Officer Within its midstream business, Seven Energy has a narrow customer base with
the risk of non‑performance and/or non-payment.
Security
Assessment: Medium
(2013: Medium)
Chief Operating Officer Security incidents, such as kidnapping and criminal activities, are inherent risks
to Seven Energy’s operations in Nigeria.
Legislation
and regulation
Assessment: High
(2013: High)
Chief Executive Officer Seven Energy’s licences and operating activities are subject to various laws
and regulations, some of which may be changing in the short- to medium-term.
Adverse media
Assessment: High
(2013: High)
Chief Financial Officer Negative or speculative media coverage could adversely impact Seven Energy’s
reputation and ability to operate.
Risk management continued

Mitigation
KPI/Performance
metric
Strategic
objectives See also
Ongoing options analysis undertaken to assess opportunities to access additional reserves and resources via
appraisal and exploration, third party purchase arrangements, or through an enlarged asset portfolio following
new fields’ bid allocation processes or via MA activity. Annual assessment by independent experts of existing
reserves and resources.
Reserves and resources Operational
review
For each investment opportunity, significant emphasis is placed on in-depth reviews and evaluation. By using
Seven Energy’s in-house experience and expertise, combined with that of its advisers, full due diligence and
integration planning are undertaken as part of the evaluation process. In addition, each asset continues to be
closely monitored with decisions being implemented to capture the assets’ long-term value.
Reserves and resources
Contracted gas volumes
Weighted average gas
price
CEO’s statement
Through the existing legal arrangements in place for the Group’s portfolio of assets, combined with active
technical and financial participation, the Group strives to maintain a positive and mutually beneficial working
relationship with its strategic and joint venture partners. In addition, the Group monitors closely the obligations
attached to the licence of each of its assets, the Strategic Alliance Agreement with NPDC, and works with its
partners to ensure that the relevant work programmes are met.
Capital expenditure
Gross production
CEO’s statement
Succession planning, review and benchmarking of remuneration policies are regularly undertaken across the
organisation. In addition, significant focus is being placed on internal communications to align this with the
Group’s external communications programme.
Employee turnover
Diversity
% in-country staff of
Nigerian nationality
Corporate social
responsibility
For each project, either construction or drilling related, Seven Energy carefully evaluates the feasibility, cost
estimates and the projected rates of return prior to approval. Dedicated project teams oversee the individual
projects to ensure completion in line with timetable, taking into account the Nigerian dry and wet seasons
and supply of high quality contractors. The teams also work in close cooperation with any third parties.
Capital expenditure
Operating cash flows
Operational
review
Industry leading QHSSE/CSR policies and procedures have been implemented across the business. The Group
has a dedicated QHSSE/CSR team in place to ensure continued high awareness and application of these policies
and procedures. Environmental considerations are also key and are an area of increasing regulation. Work
continues to ensure that operations meet international standards. Emergency response plans have been
updated and implemented and are regularly tested.
LTIR
TRIR
FAR
No of environmental spills
Corporate social
responsibility
Seven Energy closely monitors its funding and liquidity requirements. Formal budgeting and forecasting
processes are in place and cash forecasts are regularly produced and reviewed to ensure compliance with
funding obligations and growth plans. To further optimise the Group’s capital structure, continuous
evaluation of market opportunities takes place.
EBITDAX
Financial review
Strict policies and procedures are in place across the business, and in particular with regard to contracts and
procurement and anti-bribery and corruption. These policies are regularly reviewed and updated and subject
to internal audit. Careful vetting and monitoring processes are in place for suppliers. A programme of regular
training and awareness has been implemented and there is an independent reporting hotline.
% completion of
compliance training
% compliance certification
Board
Committee
report
In addition to the take-or-pay provisions within each gas sales agreement, significant credit enhancing packages
are being sought where appropriate. The Group continues to work closely with its key customers to ensure
mutually beneficial relationships. As part of Seven Energy’s core strategy additional customers have been,
and continue to be, sought to diversify the risk.
Weighted average gas
price
Gross production
Contracted gas volumes
Operational
review
The Group is sensitive to security issues, and its operations are focused on relatively secure areas of the Niger
Delta. In addition, the Group has dedicated security teams in each area of operation, with a robust security
management and alert system in place. Each asset and operation is assessed regularly from a risk perspective
and security considerations are incorporated into all new projects.
Gross production
LTI
TRIR
No of fatalities
Corporate social
responsibility
The Group and its advisers closely monitor any proposed changes, particularly with regard to the proposed
Petroleum Industry Bill, and consider mitigating and contingency plans, including lobbying and active
participation in discussions. In addition, it closely monitors the political situation in general.
Effective tax rate CEO’s statement
The Group and its public relations advisers actively monitor and respond, as required, to the media. In addition,
the Group seeks to provide full transparency of its operations via its external communications programme.
It has also established a Crisis Media Plan.
Reputational damage CEO’s statement
Market penetration
Access to reserves
Stakeholder value

Generating
and sharing
wealth
Corporate Social
Responsibility Report 2014
Generating and
sharing wealth
Read more:
Corporate Social
Responsibility Report
Our key areas of focus
Stakeholder relations
Nigerian content
People
Health and safety
Asset protection
Compliance
Environment

We aim to be a leader in our sector and in the region in all areas of Corporate Social
Responsibility. We continue to incorporate industry best practice in our daily activities,
with our objective being to meet or exceed national and international standards.
CSR highlights
Successful education programme on
dangers of hydrocarbons for all pipeline
right of way communities.
Training for 23 local graduate trainee
engineers and ten local heavy duty
equipment operators.
No lost time incidents, serious health,
safety and environment related incidents
or reportable environmental spills.
Extensive Health, Safety Environment
training and awareness programme
for 416 staff and contractors.
Finalised the Seven Energy CSR
management system, aiming to meet
the IFC performance standards.

Seven Energy Annual Reports & Accounts 2014

Seven Energy Annual Reports & Accounts 2014

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