MPI – 2014 Half-Year Results

Regulatory News:

MPI Group (Paris:MPI):

MPI Group: financial information for the first half of 2014

The MPI Group operates through its interests in Nigeria, mainly in SEPLAT Petroleum Development Company Plc ("SEPLAT”) and projects it has undertaken, primarily in Canada and Myanmar, in partnership with the Maurel & Prom Group through the joint investment company Saint-Aubin Energie.

The Group's net income rose sharply from €20 million in June 2013 to €55 million at the end of June 2014, due to the substantial increase in income resulting from the consolidation of SEPLAT via the equity method and a dilution gain of €29 million generated from the subsidiary’s IPO.

At 30 June 2014, MPI’s cash totalled €237 million. The Group has a strong capacity to raise funding because it currently has no debt of its own.

Through Saint-Aubin Energie, the MPI Group could use this cash and its funding capacity to develop new opportunities.

Information on SEPLAT’s activities

SEPLAT’s IPO

Since 14 April 2014, SEPLAT’s shares have been listed simultaneously on the London and Nigerian stock exchanges. Following this IPO, the Company, which previously held 30.1% of SEPLAT’s share capital, saw its equity interest diluted to 21.76%.

On 22 April 2014, SEPLAT used part of the proceeds from the IPO to pay off the outstanding balance of US$48 million due in respect of the shareholder loan granted by the Company to SEPLAT on 25 June 2010. The remaining proceeds of the IPO will mainly be used to finance new acquisitions.

SEPLAT’s key financial data at 30 June 2014

SEPLAT announced its interim results to 30 June 2014 in a press release dated 25 July 2014, which has been excerpted below:

As a reminder, in February 2014 SEPLAT obtained "Pioneer Industry” status, with effect from 1 January 2013, providing corporation tax relief for up to 5 years.

SEPLAT’s activity in the first half of 2014

Seplat’s average working interest hydrocarbon production⁽¹⁾ in the first half of 2014 was 27,375 boepd, compared to 27,183 boepd in H1 2013. Excluding unplanned downtime in the period of 28 days (out of 45 days in total) Seplat’s average working interest production was 32,388.

In addition, decided key strategic focus of Seplat’s is to increase gas production to meet growing domestic demand. It is currently investing to increase its capacity by 150 mmscfd to reach 300 mmscfd in 2015. This represents the first phase of a gas processing expansion programme with the aim of achieving production of 450 mmscfd in 2017. A new unit, with a capacity to process 150 mmscfd is en route to the Oben site where civil works are being finalised. The installation of the new unit remains on target for completion by the end of 2014.

Information on Saint-Aubin Energie’s activities (2/3 owned by MPI)

Anticosti

On 2 April 2014, Saint-Aubin (E&P) Québec Inc., a wholly owned subsidiary of Saint-Aubin Energie SAS, signed an agreement relating to the creation of a joint venture, in partnership with Ressources Québec, Pétrolia and Corridor Resources.

The equity interests in the joint venture are as follows:

• Ressources Québec: 35%
• Pétrolia: 21.7%
• Corridor Resources: 21.7%
• Saint-Aubin (E&P) Québec: 21.7%

The joint venture holds exploration permits on Anticosti Island in Quebec, which are operated by Pétrolia.

The first phase of the exploration programme, consisting of 15 to 18 stratigraphic wells, is underway. This summer campaign will use four drilling rigs, and well sampling work at Caribou, Sainte-Marie and Canard began in late July 2014.

Alberta

Also in Canada, at Sawn Lake, Alberta, two parallel wells were drilled by Andora, the operator. These two wells – a steam injection well and an oil production well – will serve as a pilot to determine the quality of the SAGD.

On 21 May 2014, steam injection began in the two horizontal wells at the SAGD Demonstration Pilot, with the aim of preheating the oil between the two wells. Steam injection into the reservoir should allow oil production to begin in the second half of 2014.

Changes in Group governance

Xavier BLANDIN appointed Chief Executive Officer of MPI Group

On 27 August 2014, the Board of Directors appointed Xavier BLANDIN as Chief Executive Officer of MPI Group. Michel HOCHARD, whose term as Chief Executive Officer came to an end on 26 August 2014, was appointed Deputy Chief Executive Officer.

A graduate of the HEC business school in Paris and former student of the prestigious ENA administrative college, Xavier BLANDIN, spent the early part of his career (1978-1991) in the French civil service, notably with the Treasury Department. During this period, he was deputy director for France at the International Monetary Fund in Washington and financial attaché at the French Embassy in the United States (1983-1985), Head of the Banks and Banking Regulation office at the Treasury Department (1985-1986), technical advisor to the Cabinets of Mr Cabana and subsequently Mr Balladur (1986-1988), head of the public enterprise office (1988-1989) and assistant director to the Treasury Department (1989-1991).

From 1991 to the end of December 2010, Mr BLANDIN worked in the banking sector, first for Banque Paribas (1991-1999) and then for BNP Paribas, where he was a member of the Executive Committee of the Corporate Finance Department before becoming a Senior Banker.

Xavier BLANDIN has been a director of the Company since 22 September 2011.
For more information: www.mpienergy.com
Listed on: NYSE Euronext – Compartment B – CAC All Shares – CAC PME
ISIN code: FR0011120914

MPI is eligible for the French "PEA PME” investment scheme

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This document may contain forward looking statements about MPI's financial position, income, activities and industrial strategy. By nature, forward-looking statements contain risks and uncertainties to the extent that they are based on events or circumstances that may or may not happen in the future. These projections are based on assumptions we believe to be reasonable, but which may prove to be incorrect and which depend on a number of risk factors such as, fluctuations in crude oil prices, changes in exchange rates, uncertainties related to the valuation of our oil reserves, actual rates of oil production and the related costs, operational problems, political stability, legislative or regulatory reforms, or even wars, terrorism and sabotage.