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Working closely with our stakeholder groups and focusing on our commitment to responsible development, we have grown to become a major Canadian energy producer in a relatively short period of time.  A snapshot of our history is provided below, with full details available in our news releases and annual information forms.

Formation

Seven Generations Energy Ltd. ("7G") was formed in May 2008 based on a concept and name that conveyed its commitment to responsible development and ongoing consideration of how its decisions will affect stakeholders seven generations into the future. 7G operates in accordance with and is committed to its Guiding Principle, a philosophical belief that only those companies that best serve their stakeholders will be successful in the long term.

Funded by management and private investors, 7G acquired its first lands in three locations, the Kakwa region of northwest Alberta, North Dakota’s Bakken tight oil play and an emerging shale gas play at Horn River, in northeast British Columbia.

The initial Kakwa holdings, located about 100 kilometres south of Grande Prairie, Alberta, were acquired through the acquisition of Samson Canada, the Canadian subsidiary of a U.S. independent petroleum producer. The acquisition included a small production operation including the first phases of the Lator natural gas liquids extraction plant and the Karr booster compressor station (now the Karr Super Pad and condensate handling facility). The acquired production was from various shallow, dry gas Cretaceous-era geological formations, mainly the Cadotte formation.
7G saw potential in several formations, known at that time to be so tight that if commercial development could be achieved it would require horizontal wells with multiple stages of hydraulic fractures. The combination of tighter conventional reservoirs that would generate cash flow along with potentially significant upside value from an unconventional, tight liquids and natural gas play made Samson’s offering attractive to 7G in its early days. Tight gas development pioneers, such as ARC Resources and Encana, had already established commercial production from the Montney formation approximately 160 kilometres (100 miles) to the northwest at the Dawson and Swan fields.

Exploring Beyond Conventional Geological Thinking

At the time there was considerable industry debate on the degree of porosity (the pore space in dense, tight rock where petroleum can reside) required to enable commercial rates of production. Based on a cursory review of petrophysical well logs and records, the porosity in the Kakwa River region appeared to be too low for economic recovery hydrocarbons. The cause of the deceptive porosity readings was largely not the porosity itself. Rather it was the density of the dolomite rich Montney rock in the region.

7G believed that the ability of natural gas to flow within the Montney had more to do with the size of the pore throats than with the porosity. The company’s geologists and engineers pushed past the conventional oil and gas evaluation practice of arbitrarily declaring a porosity cut off below a certain threshold and discounted conventional thinking based on the age of shale and tight unconventional reservoirs. Vertical test wells drilled in the winter of 2008-09 yielded encouraging production of liquids-rich natural gas from several zones, including the Montney formation.

A Sharpened Focus on Kakwa Value Creation

During the period from 2008 to 2010, 7G tested and delineated various tight, gas-bearing formations – the Cadotte, Gething, Cadomin, Charlie Lake, Falher and Upper and Middle Montney – and quietly added to its Kakwa land holdings. Early drilling results suggested that the Upper and Middle Montney could support a large-scale, liquids-rich natural gas project, and that this formation was potentially of high enough quality to enable wells that could compete in the over-supplied North American natural gas market.

7G monitored offsetting activity in the regions surrounding its Horn River and North Dakota Bakken holdings, and shot a seismic program at Horn River to help define the shale deposit edge. However, by the summer of 2010 it was clear that Kakwa offered the best economics as measured by the commodity price required to earn an internal rate of return sufficient to attract financing and support commercial development. As a result, Seven Generations sold its Horn River lands in 2010 and North Dakota Bakken assets in 2011 while redeploying the proceeds, including a significant gain on its initial investment, to acquire more land and expand drilling within the Upper and Middle Montney formations. The Kakwa River Project was born.

An Attractive Investment, Accelerated Activity

With a significant injection of capital from the Canada Pension Plan Investment Board and other private capital providers, Seven Generations crafted a large-scale, multi-year development plan and began increasing land acquisitions and facilities construction in late 2012. 7G then accelerated its deep, long-reach horizontal development drilling in mid-2013.

Creating a Public Company

In the first half of 2014, 7G’s founding investors determined that a full scale Kakwa development plan would require significant incremental capital. This decision resulted in Seven Generations completing a successful initial public offering of common shares in early November, raising $931.5 million.

A Growth Business with a Focus on Market Access

With sufficient growth capital in hand, and an investment opportunity that 7G believed would generate attractive returns even with the depressed prices of an over-supplied natural gas market, Seven Generations increased its pace of drilling throughout 2014 and 2015. This activity supported expanding its liquids-rich natural gas processing and transportation capacity to align with its large-scale, multi-year development strategy. Taking the strategic view that domestic natural gas production could overwhelm the local market, Seven Generations made key long-term transportation and processing commitments that would enable the company to ship its liquids rich production directly into the U.S. Midwest, one of the largest markets in North America. 7G continued to diversify and grow its natural gas marketing and transportation portfolio, ultimately providing direct market access to key consumers and export markets in Eastern Canada, the U.S. Gulf Coast and the Pacific Northwest U.S. In 2016, 7G acquired neighbouring Montney assets valued at $1.9 billion.

An Evolving Focus on Responsible Development and Value Creation

In 2017, 7G’s founding CEO Pat Carlson retired and Marty Proctor was named President & CEO. Throughout its history, Seven Generations benefited from the support of key business partners and capital providers that provided 7G with capital beyond its internally generated cash flow to support its infrastructure network growth and build out of the Kakwa River Project.

The company has evolved its primary business focus, shifting away from top line production growth towards a business strategy focused on maximizing its free cash flow generating capacity – enhancing the company’s sustainability and fueling the return of capital to its shareholders.

7G continues to uphold the values outlined in its Guiding Principle and operate under its responsible energy development and stakeholder service commitments.


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Emergency Number

403-444-1471

7G

Contact Us

info@7genergy.com

Corporate Headquarters
Calgary, AB

Operations Headquarters
Grande Prairie, AB

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