Strategy

Since inception we have been guided by a clear and consistent strategy that is supportive of our long-term strategic vision to be the leading indigenous African independent oil and gas company.

1

Maximise production and cash flows from operated assets

strategy_1

The development stage of the upstream value chain is where the majority of capital investments are usually made. It is imperative that we do this well, maintaining strict cost control, implementing the most appropriate technical solutions and organising ourselves and our service providers so that we deliver projects on time. This enables us to generate strong margin and predictable cash flow from our production, which in turn underpins our ability to fund our work programme. At the same time, we seek to improve operational efficiency by maximising uptime, reducing reconciliation losses and mitigating sole reliance on third party export infrastructure.

2

Move up 2C resources into 2P reserves category

strategy_2

We have an active drilling programme that, in addition to development wells, has an appraisal component built in so that we are constantly testing upside potential at our assets, gathering new information to allow us to maximise hydrocarbon recovery from the reservoirs and capitalise on low risk reserve addition opportunities. We also recognise the importance of exploration as a means of growing reserves. It is our intention that we will drill at least one exploration well per year, with a focus on prospects that if successful can offer rapid monetisation, utilising our existing infrastructure where possible.

3

Commercialise and produce gas reserves

strategy_3

Nigeria has a vast natural gas resource that, to date, has barely been developed. We see the commercialisation and monetisation of Nigeria’s natural gas resource as an attractive long-term opportunity and have strategically positioned ourselves by developing the Oben facility as a core gas hub through which Nigeria’s greatest demand centres can be accessed and supplied. During periods of oil price weakness, the gas business takes on added importance. Gas prices are de-linked form oil price and have steadily increased to commercial levels, meaning that we can confidently plan, finance and invest in gas opportunities independent of oil price dynamics.

4

Pursue a focused acquisition and farm-in strategy

strategy_4

We see a rich opportunity set and a wide range of growth opportunities in Nigeria including further asset divestments from the Major IOCs, asset farm-in and acquisition opportunities amongst the independent E&P sector as liquidity in the secondary asset inevitably increases and future licensing awards occur. Our focus is on securing blocks in the onshore to shallow water areas of the Niger Delta that offer near-term production growth, cash flow and reserve replacement potential.

5

Be a highly responsible corporate citizen

strategy_5

Being a highly responsible and accountable corporate citizen is a key priority of ours. We recognise that minimising the effects of our activities on the environment, understanding local issues, positively contributing to our local communities, being a first-rate employer and providing our staff with a safe working opportunities are essential enablers that allow us to achieve our goals. Underpinning all of this is a strict adherence to strong corporate governance and business integrity throughout our organisation.