SEVEN ENERGY COMMENCES CRUDE OIL PRODUCTION FROM STUBB CREEK

Seven Energy International Limited (“Seven Energy”), the independent Nigerian integrated gas development, production and distribution company, and its subsidiary company Universal Energy Resources Ltd, announce the commencement of crude oil production from the Stubb Creek Field, in Akwa Ibom State, following approval to embark on delivery of oil through ExxonMobil’s Qua Iboe Terminal.

Seven Energy’s interest in the Stubb Creek field is held through a 62.5% interest in the operator, Universal Energy Resources Ltd.  Stubb Creek’s development was conceived and led by the Seven Energy team, resulting in production start up in February 2015 at an initial gross rate of 2,000 bpd.  Plans being progressed to increase the processing capacity to 8,000 bpd. The company also constructed a 23 km oil pipeline from the field to the Qua Iboe Terminal to enable evacuation and export.

Commenting on this milestone, Phillip Ihenacho, Chief Executive Officer, Seven Energy, said “Oil production at Stubb Creek marks the successful first phase of our long term development plan, which is designed to deliver commercial development of the field’s oil reserves ahead of the development of the substantial non-associated gas reserves that are also present. In the long term it will bring additional gas production into our existing processing and distribution infrastructure, and so further deepen the growing Nigerian gas market.

Production at Stubb Creek is also important because it marks the attainment of first oil at one of the marginal fields allocated to indigenous companies. This realises the original intention of the marginal field round to enable domestic companies to bring smaller, unutilized fields on-stream, enhancing both domestic ownership and national production, and so revenue.”

The Stubb Creek Field was discovered in 1971 and lies near the mouth of the Cross River in OML 14 located in Akwa Ibom State. It was classified as a marginal field in 2002, and subsequently transferred to Universal Energy, a subsidiary of Seven Energy, in 2004. The field has been developed in a joint venture partnership with Sinopec International Petroleum Exploration & Production Company (Nigeria) Ltd.

To find out more, visit Seven Energy Website