Seven Energy Annual Reports & Accounts 2015

PoweringNigeria
Annual Report 2015

Our vision is to be Nigeria’s leading integrated
gas supplier, powering the industrialisation
of the country through our wholly-owned
infrastructure, and being recognised for the
reliability and quality of our supply whilst
generating value for our investors.
Why we’re
important
to Nigeria:
* See Glossary page 98 for definition.
Go online:
www.sevenenergy.com
We invest in Nigeria’s
infrastructure
p02
+9%
increase in net 2P + 2C reserves and resources:
452 MMboe 2015 (2014: 414 MMboe)
$215m
Operating cash flow in 2015
(vs $141m in 2014)
+200%
increase in daily average gas deliveries:
70 MMcfpd 2015 (2014: 23 MMcfpd)
$62m
EBITDAX in 2015
(2014: $273m)
• Average daily gas deliveries in the south east Niger Delta
trebled year on year to 70 MMcfpd (2014: 23 MMcfpd)
• Average daily gross oil production during 2015 increased
to 59,200 bopd (2014: 52,500 bopd)
• EBITDAX* for the year of $62 million (2014: $273 million)
• South east Niger Delta business segment contributed
73% to 2015 EBITDAX
• Loss after tax of $182 million (2014: $55 million profit)
• 9% year on year increase in 2P plus 2C net reserves
and resources
• Operatingcashflowincreasedby52%to$215millionin2015
Highlights

Seven Energy’s business continues to develop
its focus on domestic gas distribution with an
increasing percentage of sales volumes and revenues
being to our local gas customers. The benefits to
Nigeria are threefold: investment in infrastructure,
growth of industry and investment in people.
Strategic report
Overview
Why we’re important to Nigeria:
Investing in Nigeria’s infrastructure 2
Meeting our customers’ needs 4
Investing in people 6
Group overview 8
Chairman’s statement 10
Chief Executive’s statement 12
Strategy
Market overview 14
Business model 18
Our strategy 22
Key performance indicators 24
Resources and relationships 26
Risk management 28
Operational and financial review
Operational review:
South east Niger Delta 34
North west Niger Delta 38
Anambra basin 40
Corporate social responsibility 42
Financial review 48
Corporate governance
Overview 52
Board Committees 53
Board of Directors 54
Senior management 56
Directors’ report 58
Remuneration report 60
Financial Statements
Independent auditor’s report to the Directors
of Seven Energy International Limited 63
Consolidated statement
of comprehensive income 64
Consolidated balance sheet 65
Consolidated statement
of changes in equity 66
Consolidated cash flow statement 67
Notes to the consolidated
financial statements 68
Glossary of terms 98
Shareholders’ information 100
We meet the needs
of our customers
We invest in people
p04 p06
1Seven Energy Annual Report 2015
Strategicreport

Why we’re important to Nigeria
Investing in Nigeria’s
infrastructure
Seven Energy has constructed a 200 MMcfpd gas processing
facility and a 227 km gas distribution network.
Seven Energy Annual Report 20152

Seven Energy’s investors
The potential for Nigeria
Seven Energy recognises that a strong
balance sheet is pivotal for successful
oil and gas development.
We enjoy continued support from our
long term investors and have recently
welcomed the IDB Infrastructure Fund II,
sponsored by the Islamic Development
Bank and other institutional investors, to
our list of investors through their recent
investment in our business of $50 million.
“By ensuring our network is strategically
located to deliver gas to the NIPP’s
coming on stream in south east Nigeria
and having proven our ability to provide
reliable supply, we expect to continue
to expand our customer base”.
Stephen Tierney,
Managing Director, Accugas
Seven Energy
$1billion
invested in gas production,
processing and distribution
infrastructure in south east
Nigeria.
Domestic gas
distribution
Seven Energy continued to service its five
contracted gas customers. Over the year,
this comprised average daily deliveries of
17 MMcfpd to Ibom Power, 16 MMcfpd
to Unicem cement factory, 10 MMcfpd
to Notore fertiliser plant, 10 MMcfpd
to Calabar NIPP power station and
17 MMcfpd to Alaoji NIPP power station.
Read more in:
Business model page 18
Strategicreport

Meeting our
customers’ needs
Successfully supplying our five existing gas customers in 2015,
we aim to expand our customer base to deliver gas to other industries.

Read more in:
Operational review page 33
Seven Energy’s opportunity
Meeting Nigeria’s gas needs
With a reputation for being a trusted
partner in Nigeria with a successful track
record in building a gas business known
for quality of supply, Seven Energy is
well positioned to become the country’s
leading integrated gas supplier.
Coupled with the domestic demand for
gas and favourable policy for developing
Nigeria’s gas reserves, Seven Energy has
prioritised the commercialisation and
monetisation of its significant gas assets.
Seven Energy’s working interest gas
reserves and resources base is 1.9 Tcf
of gas (2P and 2C), providing a platform
for growth potential and a solution to
meet local gas demand.
“Seven Energy is a very reliable and professional business
partner, willing to engage in a dialogue to ensure the
timely and efficient resolution of issues to ensure
uninterrupted operations. We have enjoyed a transparent
and effective relationship over the last few years and
look forward to the same going forward”.
Rabiu Umar,
Energy Strategy Director
Lafarge Africa Plc
With domestic gas prices delinked from
the oil price, Seven Energy’s gas strategy
provides a hedge against the volatility
of the oil price facing the industry.
1.9Tcf
Seven Energy’s gas reserves
and resources (2P 2C)
2Bcfpd
Nigeria’s gas demand
Unicem
The United Cement Company of Nigeria
Limited (Unicem) is an Associate of Lafarge
Africa Plc and is one of Seven Energy’s
anchor customers. Located in Cross River
State with a manufacturing plant at
Mfamosing, Akamkpa Local Government,
40 km north east of Calabar, Unicem
represents the blueprint of the Seven Energy
gas customer; an energy-intensive industrial
operation directly linked to the growth and
development of the country.
Strategicreport

Investing in people
We continue to develop our organisational capabilities, foster and retain the
best talent and look after our people, to support the business as a whole.

Read more in:
Corporate social responsibility page 42
The benefits for Seven Energy
“Seven Energy stands out
amongst industry peers.
Within a short while, I’ve
seen us make tremendous
progress in our capital projects,
operations and the business
as a whole. Underpinning
this is an engaged, competent
and diverse workforce, good
governance and a deep
respect for employees and
our various stakeholders.”
Arinola David
Human Resource Manager
75%
of staff across office and field locations
participated in a training / development
programme in 2015
95%
of our Nigeria-based staff are indigenous
31%
of our total workforce are women
Training
Our Learning and Development
Committee continued to plan training
events and programmes that were
targeted to individual needs, based
on organisational requirements.
Seven Energy employs 198 full-time
staff and on our various infrastructure
projects we employ numerous
contractors. The employment
opportunities offered to Nigerians
through our operations are significant.
In addition, through our involvement
with our footprint communities,
we offer casual work to many youths
in our operational areas.
198full-time staff employed in 2015
104contractors hired (as of 31 Dec 2015)
The benefits for Nigeria
Strategicreport

02
03
01
Oil 31%
Gas 69%
Oil vs gas: net 2P + 2C
Anambra basin
Port
Harcourt
Calabar
Owerri
Aba
Ikot
Abasi
Ukanafun
Uyo
Oron
Nsukka
Onitsha
Enugu
Umuahia
west
South east
North
kilometres 1000
Niger
Seven Energy licence areas
Seven Energy marginal field areas
Licence areas
NPDC Strategic Alliance Agreement areas
Oil and gas fields
Seven Energy gas pipeline
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 processing facility
Major road
Legend
Group overview
At a glance
Seven Energy is the leading integrated gas company in
south east Nigeria, with upstream oil and gas interests
in the region. We have a deep understanding of the
domestic Nigerian gas market, supplying gas to the
power generation and manufacturing industries,
principally through our own integrated processing
and pipeline infrastructure.

02
OML 4
OML 38
OML 41
Warri
03
Enugu
Nsukka
Onitsha
OPL 905
OPL 917
OPL 907
01
Aba Uyo
Ikot
Abasi
OML 14
OML 13
Port
Harcourt
Calabar
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 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.
/ 200 MMcfpd gas processing capacity
/ 227 km gas distribution network
/ Delivering to five gas customers during 2015
/ 156 MMboe net1
2P + 2C (Uquo and Stubb Creek)
Read more in:
North west Niger Delta
Seven Energy entered into a Strategic Alliance Agreement in 2010
with the Nigerian Petroleum Development Company, whereby
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 57,000 bopd in 2015 – an increase of over 120%.
/ 231 MMboe net1
2P + 2C (OMLs 4, 38 41)
/ 57,000 bopd average gross production during 2015
/ 5.1 MMbbl of oil lifted in 2015 (2014: 3.7 MMbbl)
Read more in:
Anambra basin
In 2015, Seven Energy increased its footprint in south east Nigeria,
acquiring an additional 50% licence interest in OPL 905. The
Group now holds a combined 90% licence interest in OPL 905,
a 22.5% share of a 41% licence interest in OPL 907 and 42%
licence interest OPL 917, all located in the Anambra basin. The
Anambra basin is a relatively underdeveloped region, rich in gas
resources, which we will look to harness to provide gas for local
industry in the medium to long term.
/ 65 MMboe net2
2C (OPLs 905, 907 917)
/ Existing gas discoveries
/ Appraisal programme ongoing
Read more in:
1 Net entitlement from indirect interest
2 Net Seven Energy interest
Strategicreport

Chairman’s statement
Steering a steady course
towards our vision
The headlines covering our industry and the Nigerian
macro-economic landscape over the last year accurately
describe the very challenging environment that
we have been operating in. Nonetheless, we have
continued to make good progress towards achieving
our long term objectives.
Dr Andrew Jamieson
Chairman
Reinforcement of the business model
The turmoil that the oil industry, and
the exploration and production sector in
particular, is currently experiencing due to the
sharp fall in the oil price and the weakened
long term outlook has in many ways
emphasised the strength in our business
model and our long term strategy.
Our gas business in south east Nigeria,
which is fully integrated with our upstream
assets in this region, will generate
sustainable earnings and cash flow under
long-term fixed price gas processing,
transportation and sales arrangements,
sheltering us from oil price volatility and the
ongoing capital expenditure that is typically
required by EP companies to sustain
production and growth. Our infrastructure
also provides us with first mover access to
significant opportunities in the growing
domestic gas-to-power market in Nigeria.
We are, therefore, sharpening our focus
on the infrastructure business, restructuring
our business and organisation and, in the
process, reducing our cost base. We expect
that this will also better position us to attract
additional equity and longer term, lower
cost debt capital, at a time when the sector
as a whole is suffering from capital flight
and depressed valuations.
Whilst the midstream gas business is our
core focus, we remain fully committed to
our upstream business and to our existing
joint venture arrangements, which are an
integral part of our business model and
growth strategy, and to the StrategicAlliance
AgreementwithNPDC.
Strengthening the balance sheet
We have continued the programme that we
initiated in 2014 to strengthen the balance
sheet through the renegotiation and
refinancing of our existing debt facilities and
the issue of additional equity. During 2015
we successfully refinanced the Accugas
infrastructure debt, closed a new $52
million debt facility, put in place a $30
million local currency working capital facility
and, in February 2016, we closed an equity
issue to raise $100 million from existing
investors and a new infrastructure fund.
The focus of this ongoing programme is an
initiative to put in place a tranche of longer
term debt more suited to our midstream
infrastructure assets so as to align the debt
obligations and availability with the revenue
and cash flow profile of the midstream
business. Further details can be found
in the Financial review.
One of the biggest risks in our business
model is the creditworthiness of our gas
off-takers and their ability to pay, particularly
those in the power sector where the value
chain stretches beyond our direct
counterparty to the market regulator, the
distribution companies and the end users.
This has been and continues to be an area
of focus and we have made good progress
in renegotiating our gas sales agreements
to reduce our risk through enhancing the
credit support packages.
Operational performance
During 2015 we continued to make good
progress operationally to be in a position
to meet the growing demand of our gas
customers as and when they come up to
fully operational capacity. Whilst the
build-up in demand from these customers
during the course of the year was slower
than expected, gas sales had increased by
over 300% to in excess of 100 MMcfpd
by 2015 year end. Construction of the final
leg of our pipeline network in the south
east Niger Delta region is on budget and
on schedule for completion this year, which
will position us to supply in excess of 200
MMcfpd from mid-2016, all of which is
contracted under long-term fixed price
take-or-pay arrangements.
First oil production from both the Uquo and
Stubb Creek fields commenced during 2015
and field performance has been in line with
expectations.

Chairman (and shareholder’s representative) 1
Board composition
Executive Director (and shareholder’s representative) 1
Independent Non-executive Directors 1
Other shareholders’ representatives 7
Board experience
Oil and gas industry 6
Financial 1
Capital markets 3
We also achieved exploration success on
the North East-1 prospect on the Uquo field
with commercial discoveries of both oil and
gas, adding 20 MMboe gross 2P reserves
and extending our reserve life under existing
gas sales contracts by a further two years.
Corporate social responsibility
We place a high priority on the health,
safety and security of our workforce and
the local communities impacted by our
operations. We continue to implement best
practice in our daily activities in compliance
with the highest standards and our track
record has been second to none. However,
it is with deep regret that I have to report
the fatality of a community member in a
road traffic accident involving one of our
contractors. We are providing support to
the family and have introduced additional
safe-driving procedures, testing and training
to prevent similar tragic accidents.
Financial performance
In the short term, whilst the Group’s gas
business builds up to full operational
capacity, the Group’s financial performance
is still materially influenced by the oil price
and this is reflected in the financial
performance for 2015.
Total revenue decreased by $24 million to
$354 million (2014: $378 million), but this
decrease masks a significant 171% increase
in gas revenues to $92 million (2014: $34
million). Oil revenues declined by 24% to
$261 million (2014: $344 million) with the
lower realised oil price being compensated
to some extent by increase lifting volumes
under the terms of the Strategic Alliance
Agreement on OMLs 4, 38 41. EBITDAX
was 77% lower at $62 million (2014:
$273 million). The lower oil price has also
impacted on the carrying value of our
interest in OMLs 4, 38 41 which has
resulted in an impairment charge of $90
million (2014: nil) which is a contributing
factor in the reported loss after tax of
$182 million (2014: profit after tax $55
million). Net cash flow generated from
operations increased by 52% to $215
million (2014: $141 million), predominantly
as a result of increased cash flow from
our integrated gas business. Capital
investment in 2015 amounted to $238
million (2014: $912 million), of which
$125 million (2014: $408 million) related
to OMLs 4, 38 41.
Board changes
We remain committed to high standards
of corporate governance, whilst
recognising that it should always be
fit for purpose. Following the most
recent equity raise we now have nine
shareholder representatives (including
designate Chairman and Executive
Director) on the Board of Directors,
recognising the significance of their
ongoing financial and strategic support
to the Company, representing as they
do approximately 75% of the issued
and voting share capital. Given the
diversified nature of the shareholder
base the rationale for the Company
to also retain all of its independent
Non-executive Directors at this stage
in the Company’s development is
significantly diminished so Clare
Spottiswoode, Fidelis Oditah and myself
will be stepping down as Directors of
the Company at this year’s Annual General
Meeting, with Matthew Harwood
succeeding me as Chairman of the Board.
I would like to thank Clare and Fidelis for
their valuable contribution to the Company.
Outlook
The oil price hiatus will continue to present
short-term challenges, adversely impacting
our cash flow and market sentiment
generally as we look to continue to
strengthen our balance sheet, at a time
when our gas business is still growing to
full operational capacity. However, we will
see our capital expenditure programme for
2016 decrease significantly in the south east
Niger Delta as we complete our distribution
network, and we are continuing to closely
examine our cost base to achieve
sustainable savings as we restructure our
business. During 2015 we reduced our
operating cost base by 20%, and we expect
to realise further annual cost savings of
20 – 30% as we sharpen the focus of our
business to maximise shareholder value. This
will position us with a leaner, more efficient
organisation, to exploit what I believe is a
strong and sustainable business model,
with excellent long-term growth potential.
Finally, I would like to thank shareholders,
management and employees for their
continued support, contribution and
commitment in these very challenging,
yet progressive times.
Dr Andrew Jamieson
Chairman
Corporate governance
The Board is committed to the highest standards
of corporate governance, with strong shareholder
representation, ensuring that it is fit for purpose.
Matthew Harwood
Non-executive Director
(designate Chairman)
Phillip Ihenacho
Chief Executive Officer
Ashley Dunster
Osam Iyahen
Atul Gupta
Cyril Odu
Lubomir Varbanov
Stephen Vineburg
Peter Gutman
Michael Lynch-Bell
Independent non-executive Director
Read more in: Corporate governance page 52
Strategicreport

Chief Executive’s statement
Growing stakeholder value
in a challenging environment
Strategic update
With a threefold increase in gas deliveries
in 2015, we truly established Seven Energy
as a force in the Nigerian domestic gas
market and are closer than ever to reaching
our vision of being Nigeria’s leading
integrated gas supplier. This is due to the
dedication of our people, years of hard
and intensive development work and the
effective deployment of $1 billion of capital
expenditure into Nigeria’s gas processing
and transportation infrastructure.
Last year was not, however, without its
difficulties. With the oil price falling sharply
during the course of 2015, Nigeria, as Africa’s
largest oil producer, is facing a significant fall
in revenue which has led to challenges in
financing infrastructure projects. These
conditions have impacted our oil production
interests and pose a significant threat to
Nigeria’s oil dependent economy, where we
conduct our business. However, the continued
development of our gas business mitigates
this, both in terms of helping to reduce
Nigeria’s need to import diesel and by making
our revenues less reliant on the oil price. Our
priority lies in establishing long term take-or-
pay gas contracts with customers supported
by appropriate credit arrangements.
Our vision to be the leading integrated gas
supplier for the domestic Nigerian market is
proving its worth in the current low oil price
environment as we continue to attract new
investors and enjoy support from our major
shareholders. Our focus will remain on
expanding our gas sales arrangements into
the domestic gas market seeking to diversify
our customer base to include industrial and
power generation users.
South east Niger Delta – gas business
In the south east Niger Delta, our expanded
gas processing and transportation
infrastructure enabled us to reach a larger
demand area for the delivery of gas and as
a result we delivered gas at an average rate
of 70 MMcfpd in 2015 (2014: 23 MMcfpd).
We have seen volumes build up over the
past year as customers have come online,
in particular the Calabar NIPP and Alaoji
NIPP power stations. This has resulted in
a south east Niger Delta contribution to
EBITDAX of $45 million in 2015 (2014:
$28 million loss) which reflects the increase
in deliveries to our customers.
We delivered increasing volumes of gas to
five contracted gas customers (2014: two):
the Ibom Power station, the Calabar NIPP
power station, the Alaoji NIPP power station,
the Unicem cement factory near Calabar,
and the Notore fertiliser plant near Port
Harcourt. During the early months of
2016 these deliveries have risen to over
100 MMcfpd, closing the gap towards our
target of delivering 200 MMcfpd in line with
the projected growth of customers demand.
With the full integration of the East Horizon
gas pipeline into our processing and
distribution network and our good working
relationship with NGC we have been able to
deliver gas to customers in the Port Harcourt
areainthewestandtotheCalabarNIPPpower
station and the Unicem cement factory in the
east. During the year we have progressed the
construction of an additional 26 km pipeline
from Oron to Creek Town which will enable
us to deliver gas directly to the Calabar region.
This work will be concluded in mid-2016,
to coincide with Calabar NIPP power station
becoming fully operational and requiring full
volumes of gas. The build-up in gas take from
Calabar has been delayed due to the time
taken to construct its electricity distribution
system; however, we are confident that
completion of this infrastructure is a priority
for the Nigerian Government in 2016.
As we reach the final stage of this phase
of our infrastructure development, capital
expenditure will continue to reduce in 2016,
as it did in 2015, and our focus will be on
building our customer base. Our work
includes targeting ‘last-mile’ customers
located close to our pipeline infrastructure,
including captive power plants which
generate electricity for small industrial areas
that value a reliable electricity supply, as well
as seeking additional high volume customers
to whom we can supply gas on a long term
basis. Our experience and demonstrable
ability to build and develop gas infrastructure
efficiently and safely in the Nigerian
environment is a core skill and this will enable
us to efficiently access and bring online new
customers in 2016.
Seven Energy is now established as a significant
participant in the rapidly developing Nigerian gas
market, despite the challenging environment we find
ourselves in. Our gas deliveries to our five contracted
customers have more than trebled during the course of
2015 and we continue to drive market penetration by
diversifying and building our customer base further.
Phillip Ihenacho

$m
EBITDAX contribution
by operating segment
328
-28
3645
-100 -50 0 50 100 150 350300250200
South east
North west
Corporate
-27
-19
2014
2015
boepd
Net production by segment
15,800
3,400
10,500
11,000
0 4,000 8,000 12,000 16,000
North west
2014
2015
South east
$m
Administrative expenses
59
35
0 10 20 30 40 50 60
2014 2015
are monitoring the current Trans Forcados
pipeline downtime and initial indications
suggest the pipeline will be operational at
the end of the second quarter of 2016.
A review of prior years’ claimed costs has
resulted in a net reduction of incurred costs
attributable to Seven Energy’s indirect interest
of $158 million being recognised. Whilst this is
good news in terms of reduced costs and, as a
result,anincreaseinfutureprofitoilproduction
entitlement,it has resulted in a significant net
reduction in our entitlement to oil for cost
recovery in the current year. Our financial
results for 2015 reflect this impact.
Similarly, the drop in oil prices in 2015 has
resulted in impairment of asset values across
the industry. We are by no means immune
from this, and have taken a $90 million
impairment charge on our assets on blocks
OML 4, 38 and 41. More positively, our gas
dominated assets in the south east Niger
Delta have suffered no impairment giving
us further encouragement as to the merit of
our business model based on gas to power
the industrialisation of Nigeria.
Anambra Basin prospectivity
We have interests in three licences in the
Anambra basin in Nigeria: OPLs 905, 907
and 917. Each licence contains discovered
gas in addition to existing seismic data
and our work during the year provides
encouragement as to the prospectivity
of the area, both for gas and for oil. This
is an industrial region of Nigeria and offers
significant scope for development of a
gas market for power and industrial
consumption. Our plans are to initiate a
pilot development programme supplying
gas to small regional customers, both to
establish a gas market and to test the
deliverability of the discovered gas
reservoirs, which will enable us to pursue
our appraisal activities and commercialise
gas across the region.
Outlook
We plan to continue to drive market
penetration by expanding our customer
base beyond our existing customers to
deliver gas to smaller volume, higher priced,
industrial off-takers to provide us with a
more diverse and robust customer mix.
In the light of the current reduced oil prices
we have taken measures to cut costs, which,
achieved a 41% drop in administrative
expenses to $35 million in 2015 (2014:
$59 million). We have an ongoing cost
cutting initiative, looking to achieve
increases in efficiency across our operations
to weather the storm and ensure our
long term competitiveness, and we expect
Our current supply of gas comes from our
Uquo field which is a large, highly prolific
gas reservoir. With gross reserves and
resources of 800 Bcf of gas, which were
boosted by the Uquo North East 1
discovery, the four gas production wells on
this field are well able to meet our current
required delivery volumes. These wells have
delivered volumes of up to 140 MMcfpd,
consistently meeting our daily nominations.
South east Niger Delta – oil business
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 our oil gathering
manifold and its connection to ExxonMobil’s
export terminal at Qua Iboe, a process that
has taken some years to complete. Average
combined gross oil production for 2015
from the fields was 2200 bopd (2014: nil),
with 800 bopd (2014: nil) net Seven Energy
entitlement.
Our Uquo North East 1 discovery well, as
mentioned above, discovered gas as well
as 5 MMbbl of 2P oil reserves; we intend to
tie back this well as an oil producer, subject
to a positive outlook in the oil price.
In 2015, for the first time, we saw a higher
proportion of our production come from
our south east Niger Delta region, home to
our integrated gas business: 10,998 boepd,
compared to 10,500 boepd from the north
west Niger Delta region.
North west Niger Delta – OMLs 4,
38 and 41
We hold an interest in a diversified portfolio
of onshore 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 the
Nigerian Petroleum Development Company
and Seplat in the development of these fields
where average gross production has
increased from 25,700 bopd in 2010 when
we acquired our indirect interest to 57,000
bopd during 2015 with daily production
rates exceeding 80,000 bopd. In June 2015
additional processing capacity at the Oben
field facilities was completed, following
which gas deliveries have materially
increased, reaching 300 MMcfpd
in December 2015.
Our objective in the coming year is to maintain
production levels whilst minimising costs.
Oil production from these blocks suffers
considerable interruption due to sabotage
and damage inflicted on the Trans Forcados
Pipeline and we support efforts to reduce the
loss of production caused by this activity. We
to identify further potential cost savings
in excess of 20%.
We are well positioned to be part of a
successful diversification of the Nigerian
economy from its current over-reliance on
oil and we will play our part in diversifying
the economy for the benefit of all our
stakeholders, in particular for the benefit
of all Nigerians. We remain committed to
delivering the bold vision that sees Nigeria
powered by its own gas resources.
Phillip Ihenacho
Strategicreport

Market overview
Nigeria, Africa’s
most attractive
opportunity
Seven Energy operates solely within Nigeria, giving
us a depth of local knowledge in the domestic
power market. We are leaders in the development
of gas to power infrastructure in Nigeria.

Nigeria’s gas resources
Nigeria has the largest proved gas reserves
in Africa of 180 Tcf, yet its production is
inadequate to satisfy the Government’s
power generation targets. Its production lags
behind that of its developing African peers,
producing 3.7 billion standard cubic feet per
day (“Bcfpd”) versus Egypt’s 4.7 Bcfpd and
Algeria’s 8.0 Bcfpd; both countries with
smaller gas reserves than Nigeria.
The International Oil Companies (“IOCs”),
that have been active in Nigeria since the
1950s, have traditionally focused on oil in
Nigeria, with gas left undeveloped or flared.
Nigeria has the second highest gas flaring
rates globally, which was estimated to cost the
Nigerian government $870 million in 2014.
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. Seven Energy
sees this development, coupled with a
strong political backing for the development
of indigenous players, as an opportunity
to take the position as Nigeria’s leading
integrated gas supplier to power the
industrialisation of the country by the
delivery of processed gas through our
gas distribution infrastructure.
Nigeria’s economic outlook
Nigeria is Africa’s largest economy with a
GDP of $569 billion in 2014. The country
has seen robust historic GDP growth from
2000 to 2014 at an average of 8%, and this
is forecast to continue to grow at a rate of
approximately 5% per annum from 2016
to 2018. Both past and future economic
growth have been restrained by a lack of
investment in infrastructure and the lack
of adequate power supply.
Nigeria does face pressure from the lower
oil price environment being experienced
currently, although this has been partially
reduced due to efforts by the Nigerian
Government to diversify the economy away
from oil. Oil accounts for 70% of the
Government’s revenue and the majority
of its foreign currency reserves; the recent
downturn has led to the implementation of
tighter currency controls by the Central Bank
of Nigeria to support the Naira and avoid a
currency devaluation.
Seven Energy is well placed to absorb
the impact of the continued depressed oil
price through a focus on our growing gas
business as we continue to attract new
investors and enjoy support from our major
shareholders. In addition, we carefully
manage our foreign currency requirements.
Nigeria presents an attractive opportunity to
Seven Energy. It is rich in gas reserves and resources,
has a large and upwardly mobile population, a fast
growing economy restrained by a lack of electricity
and a Government committed to implementing
game changing reforms in the gas-to-power sector.
Seven Energy is perfectly positioned, as a leading
integrated gas supplier, to provide an economic
solution to the significant power supply deficit
and to play a key role in powering Nigeria’s
economic growth.
Strategicreport

Proved gas reserves (2014)
Tcf
65
50
UK
Netherlands
India
Egypt
Nigeria
180
28
9
(BP Statistical Review 2015)
Total gas production (2014)
Bcfpd
5
4
India
Nigeria
UK
Egypt
Netherlands
5
4
3
Gas pipelines (2013)
‘000 km
14
9
Nigeria
Egypt
Netherlands
India
UK
29
8
4
(CIA world factbook 2013)
Market overview
Nigeria’s growing demographic
Nigeria’s population, the largest in Africa,
and seventh largest in the world, is currently
estimated at 182 million and forecast to
grow by 2.5% per annum to 263 million
by 2030. This makes it the fastest growing
population in the top ten most populous
countries in the world. The lifestyle of this
growing population is hindered by the fact
that Nigeria delivers an intermittent power
supply to its population, which consumes
only 156 kilowatt hours per capita, one of
the lowest globally, lagging behind many
of its African peers.
Nigeria’s middle class is also growing rapidly,
as is their demand for power. Between 2000
and 2014 middle-class households grew by
600%, to a total of 4.1 million, or 11% of the
total population. This is forecast to grow by
7.2% per annum, adding a further 7.6 million
middle-class households over the next
16 years.
This forecast significant growth in the
Nigerian population and its middle-class is
a major contributing factor in the growth in
demand for electricity and, in-turn, demand
for gas to power the required electricity
generation expansion.
Sector reforms driving gas demand
Nigerian Government policy is working
towards stimulating domestic electricity
generation to meet growing demand. This is
being achieved by discouraging gas flaring
through the implementation of a “flareout”
policy and fines where flaring takes place.
In conjunction with this, the publication
of the Gas Master Plan in 2008 aimed to
address the shortfall of gas supply through
the promotion of investment in gas
infrastructure and gas fired power stations.
Along with other power sector reforms,
including the privatisation of the existing
power generation and distribution
companies, establishing a national bulk
buyer of electricity and the implementation
of a more appropriate pricing framework,
the target of the GMP was to expand
domestic power generation from 6 GW
to 40 GW by 2020. Much of this new
production will come through Independent
Power Producers who have financed new
gas fired power plants. This will require
significant private sector investment in
the full supply chain including generation,
distribution and gas to power infrastructure
and distribution networks to be successful.
Seven Energy’s capital expenditure of
$1 billion on Nigeria’s gas infrastructure
as part of our wider strategy to become
an integral supplier of gas to the Nigerian
domestic market, aligns and supports the
Government’s sector reforms and has
helped Nigeria move closer to realising
the Government’s GMP targets. Since
the smooth changeover of the Nigerian
administration in 2015, the new
Government has reiterated that the gas
to power project and resolution of the
power shortage in Nigeria are at the top
of the national agenda.
Highlights
// 180 Tcf – largest proved
natural gas reserves in Africa
// 182 million – Africa’s
largest population
(UN 2015)
// 263 million – Nigeria’s
projected population by 2030
(UN 2015)
// $569 billion – Nigeria
is Africa’s biggest economy
(World Bank 2014)
continued

Electric power consumption (2012)
(kWh per capita)
12,954
262
346
156
US
UK
South Africa
Cameroon
Ghana
Nigeria
4,405
5,452
(World Bank 2012)
Gas market outlook
Gas consumption has grown in Nigeria by
8.4% per annum between 2004 to 2014
but much of this growth is due to LNG
exports (7.2%) with only modest growth
in domestic consumption. Nigeria does
not yet have the processing and distribution
infrastructure to meet the potential demand
of the domestic market.
The domestic gas demand in Nigeria is
forecast to rise to 10 Bcfpd by 2020 from a
current estimated demand of 2 Bcfpd. The
development of gas supply for the domestic
market is therefore a priority for the Nigerian
Government as it looks to achieve its power
generation targets and to build a diversified
and stable economy.
Nigeria has one of the lowest rates of
electricity generation per capita in the
world; only an estimated 41% of the
population has access to supply and, of this
segment, only 30% receiving their electricity
requirement. Nigerians have to resort to
burning substantially more expensive fuels
with both private individuals and businesses
relying on expensive diesel generators for
their power. Nigeria’s current electricity
output is estimated to be approximately
4 gigawatts, just 10% of the 2020 target
identified in the Gas Master Plan.
Seven Energy, by offering a solution for gas
to power across the integrated value chain
from gas production through to distribution,
sees itself as an ideal partner for the
Government in the vision of satisfying
domestic demand. Our approach is being
proven through our supply of gas to three
gas-fired power stations; we will continue
to expand our customer base in 2016 and
beyond, both to power stations and other
industrial customers.
Highlights
// 15% – gross produced
gas volumes flared in 2013
(EIA 2015)
// 156 kWh per capita –
Nigeria’s power consumption,
one of the lowest globally
(World Bank 2015)
// 2 to 10 Bcfpd – the
projected growth of gas demand
in Nigeria from 2015 to 2020
(NNPC 2015)
Strategicreport

Business model
Generating wealth
Seven Energy is the leading integrated gas company in south
east Nigeria. Our business model demonstrates the business
activities we are engaged in, the inputs we rely on, and the
outputs and outcomes we look to generate to create value
for our stakeholders over the short, medium and long term.
Financial capital:
Debt and equity investment/
free cash flows
Natural capital:
Hydrocarbons
Human capital:
Employees, contractors,
partners
Intellectual capital:
Local knowledge, quality
control, technical expertise
Social
relationship capital:
Communities, joint venture
partners, contractors, suppliers,
customers, Government
Manufactured
capital:
Facilities and distribution
infrastructure
Construction
We design and construct
integrated gas infrastructure,
and ensure control through
ownership
Contract
management
We engage in secure
and economically
beneficial contracts
Distribution
We distribute our final
products, high quality
gas and crude oil, through our
network of pipelines, with a
focus on reliability
Exploration
andproduction
We look to sourcegas to
guarantee reliability of
supply to meet our
customers’ needs
Relationship
management
We cooperate closely with all
our partners, who are crucial
in assisting us in getting our
productto market
Financial
management
We align our capital structure
tosupport our long-termfront-
loaded capitalintensive business
Inputs Business activities
These are the key inputs consumed
by our business, which we manage
closely to ensure the efficient and
timely availability of quality resources
Through these processes we transform these inputs to create
value for the Company as well as our stakeholders as a whole

Read more in:
Operational and financial review page 33
Read more in:
Corporate social responsibility page 42
Read more in:
Corporate governance page 52
Outputs Outcomes
Cash flow
Reinvested into the business
Clean fuel
Our gas business provides cleaner,
cheaper fuel to power Nigeria
Local economic growth
Job creation leads to
improved living standards
Electricity generation
Fulfilling the Government’s
power generation plans to
drive economic growth
Licence to operate
Proven track record of delivery
Customer satisfaction
Reliable supply of high quality gas
Resulting in a high quality
product for our customers
The value realised to Seven Energy, our
investors and our stakeholders in Nigeria.
Delivery
of clean
reliable
gas
Crude
oil sales
Strategicreport

Business model
From reservoir to customer
Seven Energy is involved in the exploration, production, processing and
distribution of hydrocarbons. The delivery of our gas to market involves
the design, construction, operation and maintenance of significant
infrastructure, which is only possible with the longstanding backing
of our international investors, local Nigerian banks, and the support
of our employees and partners.
continued
Oil and gas production
We identify, develop and produce crude
oil and natural gas.
Processing facility
We design, construct, operate and
maintain a processing facility to convert
our raw hydrocarbons to delivery grade
standards. This involves the importation
of materials, engagement and management
of hundreds of contractors, the mobilisation
of heavy duty construction equipment,
all conducted to the highest and most
rigorous health and safety standards.
Gas pipelines
We lay hundreds of kilometres of gas pipeline
to transport our gas to customers through
our own, and third party, pipeline networks.
We engage with hundreds of local communities
along our rights of way, through employment,
education and social projects, to ensure
everyone benefits from our infrastructure
projects.
Gas receiving facility
We operate gas receiving and transmission
facilities where we filtrate, pressurise and
adjust the temperature of the gas to our
customers required specifications. The gas
is also metered at these locations prior to
delivery to our customers.
Telecommunications
All our sites across Nigeria need to be reliably
linked to ensure the effective and safe
operation of our assets.
Seven Energy

Severn Energy Our customers
Oil and gas production Oil exporters
Processing facility Power stations
Gas pipelines Manufacturing plants
Gas receiving facility
Telecommunications
Oil exporters
We sell our condensate, a by-product of our gas
production, and our crude oil to International Oil
Companies who export the product internationally.
Power stations
We sell our processed gas to power generation
companies, known as Gencos, for the generation of
electricity to power Nigerian businesses and homes.
Manufacturing plants
We also sell our gas to the manufacturing
industries who use the product either
to power their plants or as feedstock
which they process and transform
into their own outputs.
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.
Our customers Other operators
Strategicreport

Our strategy
Strategy for growth
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.
Develop an integrated value chain
• Build and operate production processing capacity and distribution infrastructure,
ensuring our ability to control the full value chain
• Expand into locations with proximate gas supply gas demand
Drive market penetration
• Expand customer base beyond existing anchor customers to deliver gas to smaller volume,
higher priced, industrial off-takers
• Supply gas to fuel a significant portion of Nigeria’s power generation and support the
industrialisation of Nigeria’s manufacturing sector
Gain access to reserves
• Enhance existing reserves and resources by investment in low risk gas exploration,
appraisal and development
• Maximise the use of our infrastructure by processing and delivery of third party gas
Create 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 low risk onshore exploration activity
• Establish an appropriate capital structure to maximise investor returns
Achieve operational excellence
• Comply with national and international operational standards
• Conduct operations in a responsible way in respect of both our external environment
and the safety of all stakeholders
• Continuous improvement of corporate governance across all operations to effectively
manage and mitigate risk, investing in our people, policies and procedures

Short to mid term priorities KPIs Relevant risks Progress
See through to completion the Oron to
Creek Town 24-inch gas pipeline in the
first half of 2016, resulting in an increase
in our distribution capacity and the
capability to fully use our 200 MMcfpd
gas processing facility.
• Operating cash
flow
• Managing for growth
• Partnership relations
Managed the construction of
the Oron to Creek Town gas
pipeline to align with Calabar
NIPP’s progress; fully integrated
with third party gas distribution
network, enabling us to deliver
to customers in the direction
of Port Harcourt.
Sign gas sales agreements with identified
smaller volume, higher priced off-takers in
the vicinity of our south east Niger Delta
gas distribution network.
• Gas sales • Managing for growth
• Gas off-takers
Delivered gas to five customers
through 2015, with the
introduction of two new customers
in 2015; the Notore fertiliser plant
and the Alaoji NIPP power station.
Further clusters of customers have
been identified in the Calabar and
Port Harcourt regions.
We will continue to actively evaluate
acquisition opportunities in Nigeria in light
of the reduced asset values due to the
current tight oil price environment.
• Net reserves
and resources
• Reserve replacement We added 5 MMbbl of oil and
128 Bcf of gross gas reserves
from the successful drilling of the
North East-1 prospect, combined
with the licence area extension
granted, on the Uquo field.
Our focus in the near term is to ensure that
we maximise value from our existing gas
infrastructure in the south east Niger Delta
region. Furthermore, we will continue to
review our capital structure to ensure it is
aligned to our forecast income streams.
• EBITDAX • Project execution
• Funding and treasury
management
• Gas off-takers
• Legislation and regulation
• Adverse media
• Bribery and corruption
During 2015, we saw a significant
ramp up in gas deliveries from our
south east Niger Delta integrated
gas business to 70 MMcfpd
(2014: 23 MMcfpd). We also
successfully refinanced the
Accugas debt improving average
debt maturity to 4.2 years.
We will look to maintain our ability to provide
a regular stream of high quality gas to our
customers. We are continuously looking to
evolve and improve our high operational
standards so as to continue to achieve
international standards, including a rigorous
internal audit program and the constant
development of our policies and procedures.
• Total
Recordable
Incident Rate
• Partnership relations
• Employee considerations
• Project execution
• QHSSE/CSR
• Bribery and corruption
• Security
We continue to maintain an
excellent health safety record,
evidenced by a decrease in our
TRIR rate. We provided full
availability of gas to meet
our customers needs
throughout 2015.
Read more:
page 24
Read more:
page 28
Strategicreport

141
215
172
Operating cash ﬂow
$ million
201520142013
Net reserves and resources
MMboe
414
452
354
201520142013
Delivering on our strategy
Integrated value chain
Market penetration
Access to reserves
Stakeholder value
Operational excellence
Key performance indicators
Measuring our progress
We measure our progress through five key performance indicators
that are closely aligned with delivering on our strategy.
In 2015, we saw an improvement in all
of our key performance indicators except
for EBITDAX, which was impacted by
lower profitability in the north west Niger
Delta operations, due to lower overall
production entitlement from the Group’s
Strategic Alliance Agreement.
Despite this significant fall in EBITDAX
operating cash flow increased by 44%
to $215 million due in part to the
ramp-up in gas sales from the south
east gas business and working capital
management.
Read more in:
Financial review page 48
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
Increased during the year due to the
ramping up of operations from the south
east Niger Delta gas business, which
received cash inflows of $87 million in
2015 compared to $24 million in 2014.
This was partially offset by a decrease in
operating cash inflows from the OMLs.
Outlook
We continue to expect to receive
increased cash flows from our gas
customers in the south east Niger Delta,
under the take-or-pay contracts currently
in place, as gas deliveries increase. This is
likely to 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 cash flows. 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, measured in million of barrels
of oil equivalent.
Progress
2P plus 2C net reserves and resources
increased by 9% year on year to 452
MMboe (2014: 414 MMboe). This was
due in large part to an increase on the
Uquo field following the successful
drilling of the Uquo North East-1
prospect.
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).

Gas sales
$ million
201520142013
34
92
1
EBITDAX
$ million
201520142013
273
62
201
Total Recordable Incident Rate (TRIR)
20152013
0.0 0.19 0.13
2014
Definition
US Dollar equivalent total gas sales during
the year, based on actual volumes
delivered to our customers.
Progress
The Group continued to increase the
portion of its revenue from gas sales in
the south east Niger Delta region. This
was predominantly due to the addition
of two new customers in 2015, Alaoji and
Notore, the commissioning gas supplied
to Calabar and full year deliveries to
Unicem (2014: nine months).
Outlook
With the completion of the Oron to
Creek Town gas pipeline in mid-2016
we will be in a position to deliver up
to our full gas processing capacity of
200 MMcfpd.
Risk management
Ongoing, proactive engagement of
potential gas off-takers in the south east
Niger Delta region. Our gas contracts are
with customers supported by appropriate
credit arrangements.
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
The reduction in EBITDAX is principally
related to lower oil revenues and
production entitlement from the Group’s
Strategic Alliance Agreement. However,
this was partially offset by an increased
contribution from oil and gas operations in
the south east Niger Delta, together with
a reduction in administration expenses.
Outlook
The low oil price environment will continue
to adversely affect our EBITDAX. However,
our south east Niger Delta gas business
continues to grow and is forecast to
become an ever more significant
contributor to EBITDAX, providing a
consistent source of revenues sheltered
from the fluctuations experienced by oil.
Risk management
Close operational review and monitoring
of key producing assets and their
development, combined with ongoing
assessment of economic market
opportunities.
Definition
Determined by multiplying the total
recordable workplace incidents by
200,000 (industry standard measure)
and dividing by the total hours worked
during year.
Progress
During the year we experienced two
medical treatment cases that impacted
on our TRIR, a reduction from 2014
where we recorded three incidents.
We deeply regret that one fatality was
reported, a community member in a
road traffic accident involving one of
our contractors.
Outlook
Seven Energy continues to monitor
TRIR closely, along with various other
performance measures, including Lost
Time Injury Rate and Perfect Days. 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, training, follow-up, remedial
action and communication of learnings).
Strategicreport

Financial
Resources
Natural
Resources
Our
People
Local
Knowledge
Our
Partners
Resources and relationships
Creating value through
resources and relationships
Seven Energy has identified
five different resources and
relationships that play a key role
in creating value in our business.
01: Building a strong capital base
to grow our business.
Our investment strategy involves building
a strong balance sheet and investor-base
that is committed to seeing our business
succeed in Nigeria in the long-term. We
have an appropriate capital structure that
supports our business activities through
the borrowing and reinvestment of funds
to support our vision of being the leading
integrated gas supplier in Nigeria. Our track
record of support for debt and equity is
evident and includes global investors such
as Temasek, the International Finance
Corporation, and the IFC African, Latin
American and Caribbean Fund, Capital
International Private Equity, Investec Africa
Private Equity, Standard Chartered Private
Equity, Africa Finance Corporation, the
Islamic Development Bank (via the IDB
Infrastructure Fund II) and strategic
investment from organisations such
as Petrofac.
Our resources and relationships are key inputs into our business
that are vital to achieving the success of our strategy and business
model. These inputs underpin our business activities and processes
throughout our business model, and are in turn, developed and
transformed by our business activities.

02: Nurturing and developing
Nigeria’s natural resources.
Seven Energy depends on Nigeria’s natural
resources, namely gas and oil, to sustain and
build our business. Oil production creates
valuable revenue for our business, although
an increasing proportion of our sales
volumes and revenues come from our gas
customers. We continue to tightly manage
our resources, particularly in light of the
current oil price environment, restricting
capital expenditure to essential projects only
and focussing rigorously on operating cost
reductions. By transforming Nigeria’s gas
resource into power, we believe that we are
creating long term sustainable value for the
Group, our stakeholders and all Nigerians.
03: Putting people at the heart
of what we do.
Seven Energy employs a vast range of
people with diverse skills and backgrounds
from a multitude of disciplines. They are
driven by a strong set of core values
including respect, environment and safety,
leadership, creativity and openness,
motivation and excellence. Their individual
skills, competencies and experience
collectively create value and deliver our
business objectives.
Asanorganisationweinvestfinancialresources
in our people through the salaries they earn
and the training and development they
receive, thereby increasing their know-how,
wellbeing and job satisfaction, which
contribute to their, and our overall
performance.
04: Local knowledge, ownership
and experience help us to succeed.
Seven Energy has local knowledge,
ownership and experience in Nigeria,
enabling us to succeed and gain first mover
advantage as a supplier of gas to the
domestic market in our core operating areas.
Our success in Nigeria is dependent on our
collective know-how and the way in which
we deploy our capabilities to best effect
in the active management of our business.
05: Productive relationships with our
partners enable exponential results.
Seven Energy sees its partnerships as crucial
in operating successfully in Nigeria. Our
partners encompass a diverse group of
people, united by the desire to see us succeed.
Partners include our investors, staff, business
partners, gas customers, joint-venture
partners, suppliers, contractors, Right-of-Way
communities and local government
authorities. We engage our stakeholders
through a variety of means in order to take
their views and priorities into account in
the delivery of our strategic objectives.
Seven Energy ensures that our resources
and relationships and our inter-connections
are integrated into our business decisions
and prioritisation of effort and investment.
This inter-connectedness means that one
should not be maximised at the expense
of the others and we aim to balance and
take into account each, in the course of
day-to-day decision making and annually,
in the development of our strategy. Working
examples that illustrate our resources and
relationships can be found throughout
this Annual Report.
Strategicreport

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.
– Review and assessment
of existing risks.
– Monitoring of
progress against agreed
mitigation plans.
– Re-evaluation of review
cycle or closing-out of risks.
Updating of existing risks
Market penetration
Access to reserves
Stakeholder value
Risk management framework
Current and short-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.
The following are the significant
risks the Board and Senior
Management focused on
during the year as the business
started to transition from a
capital intensive phase to
an operational phase.
Key risk factor Gas off-takers
Description Core to the Group’s business strategy and capital structure are its long-term gas sales
agreements. Performance and payments by customers are the main identified exposures
for Seven Energy.
2015
Performance
Seven Energy achieved average gas deliveries during 2015 of 70 MMcfpd and received
$89 million in cash receipts from the south east Niger Delta gas customers, delivering to
five customers during the year, a more diversified customer base than the previous year.
This diversification helped Seven Energy reduce the risk as a result of the previously
narrower customer base.
Although the Calabar NIPP power station commenced taking gas during 2015, delays in
the finalisation of electricity distribution infrastructure has meant the ramp up in the gas
business, although pronounced during 2015, was slower than forecast.
Short-term
outlook
With the expected conclusion of the electricity distribution infrastructure in the south east
Nigeria Delta region, Seven Energy forecasts gas sales within the next 12 to 18 months to
reach over 200 MMcfpd, utilising the current full capacity of Seven Energy’s gas processing
facility, increasing our gas revenues as well as those of our customers.
Seven Energy also expects to close the World Bank Partial Risk Guarantee in respect of the
GSA with Calabar NIPP.
Strategic
objectives
Risk management
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

Probability
Impact
Project
execution
(2014)
Funding
and treasury
management
Funding
and treasury
management
(2014)
Commodity
price volatility
Reserves
replacement
Employee
considerations
Project
execution
Adverse
media
Partnership
relations
Bribery and
corruption
QHSSE/
community
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.
Gas
off-takersSecurity
Legislation
and
regulation
(2014)
Risk distribution
Commodity price volatility Funding and treasury management
Seven Energy’s financial performance is linked to the fluctuating price of oil, which impacts
the profit oil element of its entitlement from OMLs 4, 38 41.
Seven Energy’s gas business is not exposed to price fluctuations as the prices are on a fixed
inflation-adjusted basis.
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.
During 2015, the industry benchmark of dated Brent averaged $52 per barrel, significantly
down from the 2014 average of $99 per barrel, ending the year at $37 per barrel.
This impacted the development activity and financial performance at OMLs 4, 38 41,
where the profit oil portion of Seven Energy’s entitlement is exposed to the fluctuations in
oil price. Under the cost recovery model, the lower oil price environment results in increased
barrels required to recover costs and therefore, fewer remain to distribute as profit oil. The
Group’s cash flow risk is mitigated to an extent by an agreed three year funding plan with
NPDC and Seplat to align the timings of cash call payments with liftings.
However, during 2015 Seven Energy’s financial performance became more influenced by
its gas business which is not exposed to price fluctuations as the inflation-adjusted gas
priced is fixed in all contracts.
In 2015, Seven Energy communicated to investors a 2015 Annual Funding Plan
that detailed the Group’s short-term funding requirements which included 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, the securing of up to $125 million
of additional debt or equity funding.
During 2015, Seven Energy successfully closed the refinancing of the Accugas
debt, aligning the debt maturity profile to gas sales; secured an additional $52
million of pari passu debt; a Naira denominated $30 million Working Capital
Facility; and, in February 2016, raised $100 million of additional equity capital
from a combination of new and existing investors.
As Seven Energy continues to see a greater portion of its financial performance driven by its
gas business the exposure to the fluctuations in commodities prices, principally oil, becomes
further reduced.
Due to the terms of the cost recovery mechanism under the Strategic Alliance Agreement
Seven Energy has with NPDC on OMLs 4, 38 41, Seven Energy does not deem it necessary
or beneficial to hedge the profit oil element of its entitlement.
With the successful delivery of the 2015 Annual Funding Plan Seven Energy has
strengthened its liquidity position. Discussions are ongoing with the Accugas IV
lenders to confirm the rescheduling of the DSRA funding obligations, conditional
approval, of which, was received on 4 April 2016.
To enable the Group to achieve its objectives, risk awareness, monitoring
and control is a continuous process that involves everyone in the organisation.
Strategicreport

Principal risks and uncertainties
Risk management continued
Key risk factor Responsibility Potential impact
Strategic risks
Reserves replacement
Assessment: Medium
(2014: High)
Chief Technical Officer Access to reserves and resources underpins Seven Energy’s business and its growth aspirations.
Managing for growth
Assessment: Medium
(2014: 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
(2014: 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
(2014: Medium)
Chief Executive Officer The retention and recruitment of high quality personnel is essential to support the Group’s achievement
of its vision.
Operational risks
QHSSE/CSR
Assessment: Medium
(2014: 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
(2014: High)
Chief Financial Officer The Group has high levels of debt with associated obligations and restrictions. Therefore, there is a risk
of breach, inability to rectify ongoing breaches, and inability to undertake further financing in support of
the Group’s growth strategy. Furthermore, recent market movements have raised the possibility of the
Central Bank of Nigeria currency restrictions being imposed, to which Seven Energy would be exposed.
Bribery and corruption
Assessment: Medium
(2014: 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
Commodity price
volatility
Assessment: High
(2014: Low)
Chief Financial Officer Seven Energy is exposed to fluctuations in commodity prices, especially that of oil, which it has no ability
to influence.
Gas off-takers
Assessment: High
(2014: High)
Chief Executive Officer Within its midstream business, Seven Energy has a narrow customer base and therefore the risk
of non‑performance and/or non-payment.
Security
Assessment: Medium
(2014: Medium)
Chief Operating Officer Security incidents, such as kidnapping and criminal activities, vandalism to the Group and its partners’
assets are inherent risks to Seven Energy’s operations in Nigeria.
Adverse media
Assessment: Medium
(2014: High)
Chief Financial Officer Negative or speculative media coverage could adversely impact Seven Energy’s reputation and ability
to operate.

Market penetration
Access to reserves
Stakeholder value
Mitigation
KPI/Performance
metric
Strategic
objectives See also
Ongoing 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.
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 asset’s long term value.
Reserves and resources
Contracted gas volumes
Gas sales
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 closely monitors
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
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. The Group seeks wherever possible to align its Naira and US dollar
costs with corresponding currency inflows. Discussions are ongoing with the Accugas IV lenders to
confirm the rescheduling of the DSRA funding obligations, conditional approval, of which, was received
on 4 April 2016.
EBITDAX
Operating cash flows
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
Seven Energy’s gas sales contracts are priced in US dollars with escalation clauses linked to consumer prices,
and therefore not impacted by volatility in the oil price. Also, the Group’s oil production is partially hedged
as we are entitled to lift sufficient oil to recover incurred costs. In addition, the Group has an agreed 3 year
funding plan with NPDC and Seplat to align the timings of cash call payments with liftings.
EBITDAX
Gas sales
Financial
review
In addition to the take-or-pay provisions within each gas sales agreement, significant credit enhancing
packages are 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.
Gas sales
Operating cash flows
Gross production
Contracted gas volumes
Corporate
social
responsibility
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
Number of fatalities
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
Strategicreport

Operational and
financial review
Operational review:
South east Niger Delta 34
North west Niger Delta 38
Anambra basin 40
Corporate social responsibility 42
Financial review 48
Strategicreport

Highlights
// Average gas deliveries: 70 MMcfpd
// Commenced deliveries to Calabar NIPP
// Introduced two new gas customers into
the south east Niger Delta network,
commencing deliveries during the year
// Oil production from Uquo and Stubb
Creek fields commenced
// Average gross oil production: 2,200 bopd
// Successful drilling added 20 MMboe
to gross 2P oil and gas reserves
Operational review
South east
Niger Delta
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.

Gas delivery ramp up
Seven Energy saw a trebling of its daily
average gas deliveries in 2015, totalling
70 million standard cubic feet per day
(“MMcfpd”) for the year, up from 23
MMcfpd in 2014. This was due to the
commencement of deliveries during the
year to three additional customers, Calabar
NIPP power station, Alaoji NIPP power
station and the Notore fertiliser plant.
Seven Energy delivered 44 MMcfpd of gas
to three power stations with a combined
generation capacity of over 1 GW, and
26 MMcfpd to the manufacturing industry
supplying the Unicem cement plant,
capable of producing 2.5 million metric tons
per annum, and the Notore fertiliser plant,
which is able to produce 1,000 metric tons
of ammonia daily.
During December 2015, daily average
deliveries reached 114 MMcfpd, with 86
MMcfpd being delivered to the power
sector and 28 MMcfpd to industry.
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)
812 503 1,315
2P + 2C gross oil reserves
and resources (MMbbl)
9 22 31
2P + 2C gross reserves
and resources (MMboe)
144 106 250
2P + 2C net reserves
and resources (MMboe)
104 52 156
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, we saw a trebling of our gas deliveries to our customers
in the south east Niger Delta, demonstrating the realisation of
our vision to be the leading integrated gas business that, since
inception, our strategy and hard work have been based upon.
Seven Energy marginal field areas
Licence areas
Seven Energy oil and gas fields
Seven Energy gas pipeline (under construction)
NGC gas pipeline
3rd party gas pipeline
Seven Energy customer (power station)
Seven Energy customer (industrial)
Seven Energy customer (export terminal)
Uquo gas processing facility
Legend
Strategicreport

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
(under construction)
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
Legend
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
South east Niger Delta continued
Seven Energy’s midstream infrastructure
Power generation
Using gas supplied by Seven Energy the
Calabar NIPP power station has succeeded
in commissioning all of its five gas turbines
during 2015. These five working gas turbines
introduce an extra 560 MW of electricity
generation capacity to the national grid.
The generation and distribution capacity of
the Calabar NIPP power station continued
to be limited by completion of various
infrastructure projects along the gas-to-
power value chain. We continued work
on the completion of the Oron to Creek
Town 26 km, 24-inch diameter gas pipeline,
phased such that construction of the pipeline
will be completed and commissioning work
concluded in line with the Calabar NIPP
power station’s ability to take full contractual
volumes. Alongside this, the Federal
Government carried out construction work
on the electricity transmission lines and
sub-stations in the south east region of
Nigeria. These infrastructure projects are
on track for completion in mid-2016.
In May 2015, we commenced delivery of
gas to Alaoji NIPP power station, supplying
gas for one of its turbines, providing 110
MW to the national grid. Through an interim
gas sales agreement Alaoji has been able to
commence regular generation. This has been
enabled by our agreement with the Nigerian
Gas Company to utilise part of their network
to reach Alaoji, and this relationship has
progressed well, enabling us to meet all
our gas nominations during 2015.
Thanks to our successful gas supply
performance during the year, in December
we began supplying gas to Alaoji for a
second 110 MW gas turbine, doubling
deliveries to the power station. Supplies
continued through the year to Ibom Power
supplying one 110 MW turbine.
The Oron to Creek Town pipeline
The 26 km long, 24 inch diameter pipeline
from Oron to Creek Town has been Seven
Energy’s most challenging pipeline
construction project to date. The project
involved the engagement of some 25 local
communities, the clearing of 26 km of
predominantly mangrove swamp, five
pipeline river crossings with a total length
of 7.7 km, the longest being 2.9 km, all
of which involved horizontal directional
drilling. Total project investment is
$90 million.
Supplying industry
Seven Energy also continued to supply local
industry with gas during the year. Unicem,
the cement factory near Calabar took an
average of 16 MMcfpd for the year, up
from an average of 8 MMcfpd in 2014.
We acquired the Unicem gas sales agreement
with the acquisition of the East Horizon
Gas Company Limited in 2014, which has
facilitated the consistent and reliable flow
of our gas to the Unicem cement factory.
This acquisition of the East Horizon gas
pipeline also enabled us to deliver our
processed gas to Calabar NIPP power station
which has now commissioned its five gas
turbines, while we proceeded with work to
complete the Oron to Creek Town pipeline.
Under a short-term sales contract with
Notore, which commenced deliveries during
2015, the fertiliser plant consumed an
average of 10 MMcfpd during the year,
enabling the production of urea for use
in the local agriculture industry.
Operational review

Major customers
Seven Energy had five gas sales agreements in place during the year
– three long-term and two short-term, providing stable, diversified
and long-term cash flows.
Unicem
A 20 year, 80% take-or-pay gas sales
agreement, to supply Unicem, a cement
factory near Calabar. EHGC is contracted
to supply 25 MMcfpd, increasing to 50
MMcfpd to Unicem in 2016/2017 with the
completion of the factory upgrade. Unicem
is owned by a consortium of Flour Mills of
Nigeria, Lafarge and Holcim.
Ibom Power station
A ten year, 100% take-or-pay gas sales
agreement to supply 43.5 MMcfpd to the
190 MW Ibom Power power station, near
Ikot Abasi. The station is owned by Ibom
Power, which is owned by Akwa Ibom State.
Calabar NIPP power station
A 20 year, 80% take-or-pay gas sales
agreement to supply 131 MMcfpd to
the 560 MW Calabar NIPP power station,
near Calabar. The station is owned by the
Calabar Electricity Generation Company.
Alaoji NIPP Power station
A one year, 80% take-or-pay gas sales
agreement to supply 30 MMcfpd to the
500 MW Alaoji NIPP Power station.
Notore fertiliser station
A six month, 80% take-or-pay gas sales
agreement to supply 25 MMcfpd of gas
to the Notore fertiliser plant as feedstock,
extended for an additional six months at
10 MMcfpd.
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 our oil gathering
manifold and its connection to ExxonMobil’s
export terminal at Qua Iboe. Oil from the Uquo
and Stubb Creek fields was the first third party
oil to be exported through this terminal.
Average gross oil production from the two
fields amounted to 2,200 bopd (2014: nil);
our net entitlement was 800 bopd. We
received our first lift of oil from this terminal
in April 2015, with average gross liftings for
the year of 1,800 bopd; 600 bopd net to us.
Successful drilling campaigns
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 oil accumulations in two horizons.
This well is a considerable success,
confirming the prolific nature of the block,
adding some 20MMboe to the Uquo field
gross 2P oil and gas reserves. Following the
discovery, an extension to the Uquo Marginal
field area was granted. The discovery well
has been suspended and will be completed
as an oil producer. Further wells will be
drilled to develop the gas reservoirs in order
to maintain gas deliveries to our customers.
Strategicreport

Highlights
// Average oil gross production during 2015
of 57,000 bopd (2014: 52,500 bopd).
// Net production entitlement to Seven Energy
of 10,500 bopd (2014: 15,800 bopd)
// Nine wells drilled during 2015 (2014: 24)
North west
Niger Delta
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.
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
to be derived from six fields: Oben, Sapele,
Ovhor, Amukpe, Okporhuru and Orogho.
Production expectations for 2016 are
forecast to be similar to 2014 and 2015,
with full year downtime of 25% assumed,
which takes into account the current Trans
Forcados pipeline shut down from mid-
February 2016.
Of the nine gas wells drilled in 2015, four
were non-associated gas wells. These new
wells enabled average daily gas production
to increase by 119% to 191 MMcfpd.
Lower oil price environment
2015 saw net entitlement of 10,500 bopd
compared with 15,800 bopd in 2014, a
decrease of 34%. Seven Energy lifted the
equivalent of 14,100 bopd during 2015
realising an average oil sales price of $48/bbl,
significantly below the $94/bbl realised in
2014. Due to the nature of the cost recovery
mechanism by which Seven Energy receives
cost recovery oil on the OMLs our main
exposure to the oil price is on the profit oil
entitlement which reduces with the oil price
as a result of more barrels being allocated
for cost recovery.
Reduced activity
In 2015, there was a significant reduction in
the capital budget and activity at the OMLs
intheshadowoftheloweroilpriceenvironment
that existed during 2015, in comparison to
the intensive programme that took place in
2014 which saw the drilling of 24 wells and
capital additions at the OMLs of $408 million.
In 2015, nine wells were drilled and the
rig count went from a high of six in 2014,
down to one in the second half of 2015.
Field performance
Despite this reduction in drilling activity, the
fields continued to perform well, demonstrating
their increased productivity arising from the
2014 drilling programme, with an increase in
average gross production of 9% to 57,000
bopd, compared to 52,500 bopd in 2014.
This average was achieved in the face of an
extended shutdown period in the early part
of the year, with the Trans Forcados pipeline
being down approximately 30% of the
time during the first half of the year. Daily
production rates reached over 85,000 bopd
during the year, with production continuing
Asset overview
OMLs 4, 38, 41
Licence interest 55%1
Operator Seplat
2P + 2C gross gas reserves
and resources (Bcf) 2,129
2P + 2C gross oil reserves
and resources (MMbbl) 405
2P + 2C gross reserves
and resources (MMboe) 760
2P + 2C net reserves
and resources (MMboe) 231
Type of hydrocarbon Oil and gas
Status In production
1 Indirect interest via the Strategic Alliance Agreement
with NPDC.
We hold, through an indirect interest, 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.
NPDC Strategic Alliance Agreement areas
Third party marginal field
Oil field
Gas field
Prospective discovery
Gas pipeline
Oil pipeline
Legend
Strategicreport

Highlights
// Acquired acreage positions offering
significant gas upside covering interests
in OPLs 905, 907 917
// Industrial region offering attractive gas
market potential
// Commencement of initial technical reviews
and environmental impact assessments
Anambra
basin
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.
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
With significant gas potential to be developed to serve the
surrounding areas of industrial growth and high demand and
with gas discoveries in all three of our licences our objective is
to develop these through compressed natural gas development
to generate early cash flows.
Building the gas resource base
In 2015, Seven Energy continued to build
on our position in the region with further
acquisition into a licence area with existing
seismic and exploration wells drilled. This
included acquiring a 100% shareholding in
GTPL which holds a 50% licence interest in
OPL 905. The Group now has a combined
90% licence interest in OPL 905.
We continued with exploration and appraisal
studies on these assets. This included the
commencement of the Environmental Impact
Assessment on OPLs 905, 907 917. We have
also been progressing with a technical review
of the prospects in conjunction with our joint
venture partners, and the Nigerian National
Petroleum Corporation and the National
Petroleum Investment Management Services,
with whom we are also working closely in
respect of the EIAs.
A growing market opportunity
Through these acquisitions of undeveloped
gas resources, we are looking at medium to
long term integrated development plans and
innovative gas marketing solutions such as
compressed natural gas to commercialise our
assets in the region. Our aim is to harness
Nigeria’s vast potential gas resources to
provide vital energy to power the growth
of this industrial heartland.
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) 44 9 12
Type of hydrocarbon Gas Gas Gas
Status Undeveloped Undeveloped Undeveloped
1 Held by GTPL (50%) and E905 Suntera Ltd (40%).
2 Held by AGER (Seven Energy holds a 22.5% shareholding in AGER).
Gas discovery Oil discovery Other Towns / Villages LicenceLegend
Strategicreport

Delivering improved
standards of living
to Nigerians
Our CSR approach is founded on a commitment to
conduct operations in a responsible way in respect
of both our external environment and the safety of
all stakeholders. By developing Nigeria’s gas resource,
we support local and economic growth and conduct
our operations across our host communities in a
manner that promotes public safety and respect
for all rights for all people.

Stakeholder relations
Seven Energy continued to make good
progress across Stakeholder Relations
initiatives during the year, having
achieved a positive outcome to the
majority of our targets and priorities.
We maintained our ‘social licence’ to
operate throughout the year due to
effective stakeholder engagement, with
no downtime recorded due to community-
related incidents during 2015.
We undertook an extensive stakeholder
identification and mapping exercise across
all Seven Energy’s footprint communities
in Akwa Ibom and Cross River States,
encompassing a total of 238 groups. Regular
engagement and interface meetings were
held with the identified stakeholders to
update, discuss and manage concerns. These
activities were conducted in compliance with
our Stakeholder Engagement Process.
Within our Specialised Skills Development
Programme, 18 young people were trained
in excavator operations by a certified trainer.
These individuals were identified within
our Eastern Pipeline Project Impacted
Communities in Odukpani Local
Government Area of Cross River State.
Phase 2 of the Programme is ongoing at the
Maritime Academy in Oron where 20 young
people have been selected to undergo an
intensive course in welding and fabrication
skills. Training, skills development and
employment connect Seven Energy to
the community and benefit all involved.
CSR highlights
Seven Energy’s pioneering Green Team Initiative
Our Green Team Initiative was launched
in June 2015 in a bid to ensure that our
gas pipelines and associated Rights of
Way (“RoW”) are kept safe, accessible,
clear and clean. It is currently running
smoothly across 17 LGAs on the Uquo
– Ikot Abasi and East Horizon Gas
pipelines RoW. Through this initiative,
over 200 youths across Akwa Ibom and
Cross River States have been engaged.
The benefits of this initiative are the
assured safety of Seven Energy’s RoW,
clearance of obstructions and wild
vegetation, and regular engagement
with our RoW communities.
A further benefit of the Green Team
initiative is that we have been able
to quickly identify and manage
encroachments and any negative
activities, including erosion, on the
RoW. The communities, who provide
much of the information and
intelligence relating to encroachments
and erosion points via the initiative,
are our eyes and ears on the ground
and ensure that our vision of developing
and providing gas to light up Nigeria
is sustainable.
95%
of Seven Energy’s in-country
employees are Nigerian
$17m
spent on local vendor contracts in 2015
18young people trained in excavator
operations from our Eastern Pipeline
Project Impacted Communities
$145m
spent on procurement of
local products and services
75%
of staff participated in a training/
development programme in 2015
31%
of our workforce are women
100communities running with
our Green Team Initiative
Key focus areas
Stakeholder relations
Nigerian content
People
Health and safety
Asset protection
Compliance
Environment
Strategicreport

Seven Energy Annual Reports & Accounts 2015

Seven Energy Annual Reports & Accounts 2015

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