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SHAHZAD INTERNATIONAL GROUP OF COMPANIES 20, Margalla Road, Sector F-8/3, P.O. Box 1440, Islamabad – Pakistan Tel: 92-51-2287170-74 (5 Lines), Fax: 92-51-2287154 & 55 (2 Lines)

E-mail: pel@pepl.com.pk, peplshzd@isb.comsats.net.pk & shahzadintl@nayatel.pk Web: www.shahzadintl.com.pk

February - 2015

The Shahzad Group with a well established Corporate Head Office at Islamabad, comprising ten wholly owned Pakistani companies is dedicated to the progress and glory of Pakistan as well as the countries where it ventures to function. The Group believes in strengthening ties with its clients and corporate entities by providing quality services, expertise and equipment, together with complete care and trust that forms the basis for a continuing relationship. The Group’s pride lies in well-qualified staff that has many years of experience to their credit. They are familiar with the smooth operation process, right from the planning stage to the delivery point. The business friendly climate of the Group has given it the ability to attract world class enterprises from all over the world to Pakistan specially in the energy sector and has given these partners what they need for successful business operations. Activities of the Shahzad Group of companies cover a wide spectrum including petroleum exploration, development & production; trading; mining; power generation; supply of state-of-the-art equipment & machinery and large scale construction projects. With its sound financial position, the Group companies are in business independently, as well as in collaboration with foreign partners, since 1980. The Group’s founder Chairman & Chief Executive Mr. Zaheeruddin has been recently bestowed a prestigious civil award called “Tamgha-e-Imtiaz” by the President of Pakistan. The award was given to him in recognition of his outstanding services in petroleum and energy sectors. The Group has over 2,000 employees with offices in Islamabad, Karachi and representative presence in Calgary (Canada), Singapore, Beijing, London, Kuwait and many other important business centres of the world. The potential and capabilities of its constituent companies are given in the succeeding pages.

Contact: Mr. Zaheeruddin, Chairman & Chief Executive

Tel (D) 92-51-2287151-52 (2 Lines), Mob: 92-300-8552156, Mobile International: 0044-07711051476

Tel: 92-51-2287170-74 (5 Lines), Fax: 92-51-2287154 & 55 (2 Lines) E-mail: pel@pepl.com.pk, peplshzd@isb.comsats.net.pk & shahzadintl@nayatel.pk

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SHAHZAD INTERNATIONAL WORLD WIDE OPERATIONS FOR ENERGY DEVELOPMENT 20, Margalla Road, Sector F-8/3, P.O. Box 1440, Islamabad – Pakistan Tel: 92-51-2287170-75 (6 Lines), Fax: 92-51-2287154 & 55 (2 Lines)

E-mail: pel@pepl.com.pk, peplshzd@isb.comsats.net.pk & shahzadintl@nayatel.pk Web: www.shahzadintl.com.pk

Shahzad International is a reputable business house with worldwide contacts

and business experience of over 25 years. It takes pride in delivering quality

products, solutions and services that give customers a competitive advantage

over others. It plays a leading role in promotion of technologies, innovation,

competitiveness in services; and, economic growth. Shahzad International is a

dynamic and result oriented company that has emerged as a major integrated

services and trading house, in Pakistan. Shahzad International has played a

commendable role in bringing world-renowned multinational companies to

Pakistan, for substantial investment in the oil and gas sector, which has

culminated into significant discoveries in the provinces of Sindh and

Balochistan. Shahzad International also arranges procurement of equipment

and specialized services from abroad and is a supplier of general machinery,

equipment, sophisticated materials and services to energy related industries in

Pakistan and elsewhere.

Shahzad International is a wholly owned Pakistani Establishment with offices in

Islamabad, Karachi and representative presence in Calgary (Canada), Singapore,

Beijing, London, Kuwait and many other important business centres, in the world.

These offices are managed by competent personnel and professionals in various

disciplines of oil and gas exploration / production and energy sectors. These

offices are well equipped to handle oil and gas business and render valuable

assistance in locating and identifying reliable suppliers.

Shahzad International can render valuable assistance and excellent services in

commercial and engineering projects. In view of the experience, expertise and

well-established offices in Pakistan and foreign countries, Shahzad

International is in the best position to provide excellent and efficient services in

all areas of procurement of equipment and services. Over two decades of a

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proven track record, experience and growth has credited Shahzad International

as a leading Pakistani Corporate entity in the following specialised fields:

Oil and Gas Upstream and Downstream

Oil and Gas Equipment, Materials, Services

Refineries and Oil / Gas Pipelines

Geological / Geophysical Surveys, Seismic Data Processing

Oil and Gas Production & Processing Equipments / Materials,

Petrochemical Plants

Power Generation, Telecommunication, Mining and Metallurgy

Mega Construction Projects

Environment, Pollution Treatment

Procurement Services

Consultancy and Project Manpower Support

Gold Exploration and Prospecting

Minerals, Gemstones and industrial rocks

Geographical Information Systems

Automatic Mapping Facility Management Systems

Contact: Mr. Zaheeruddin Chairman & Chief Executive Tel (D) 92-51-2287151-52 (2 Lines), Mob: 92-300-8552156, Mobile International: 0044-07711051476 Tel: 92-51-2287170-74 (5 Lines), Fax: 92-51-2287154 & 55 (2 Lines) E-mail: pel@pepl.com.pk, peplshzd@isb.comsats.net.pk shahzadintl@nayatel.pk

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PETROLEUM EXPLORATION (PVT) LIMITED 20, Margalla Road, Sector F-8/3, P.O. Box 1440, Islamabad – Pakistan Tel: 92-51-2287170-74 (5 Lines), Fax: 92-51-2287154 & 55 (2 Lines)

E-mail: pel@pepl.com.pk, peplshzd@isb.comsats.net.pk & shahzadintl@nayatel.pk Web: www.shahzadintl.com.pk

Petroleum Exploration (Private) Limited (PEL), a 100% Pakistani Company

has emerged as an important player among the gas producing companies in

Pakistan. The company looks to the future and takes pride in being the pioneer

local gas producing company in the private sector. PEL has been established

with the aim of developing a strong indigenous base in exploration and

production sector. The Company is totally committed to exploit the oil & gas

resources of Pakistan and establish its reputation in competition with major oil

companies. PEL has already fostered close working relationship with the

Government and major multinational oil & gas companies operating in

Pakistan.

PEL has concluded an agreement with D&S International Consulting Limited,

Calgary, Alberta, Canada, for the provision of technical services which has

given considerable advantage in pursuit of its objectives.

PEL has a dedicated team of professionals, petroleum explorationists,

geologists, geophysicists and financial experts. It is presently operating 5 oil &

gas Development & Production Leases, one Mining Lease, 9 Onshore

Exploration Licenses and an Offshore Exploration License. Besides, PEL also

holds 41% working interest in Sukkur Block which is operated by Mari Gas

Company Ltd. The details of the leases and exploration licenses held by PEL

are given below:

Development & Production Leases

S.

No. Name of the Blocks

Award Date /

Status

Area

(Sq Km) Working Interest Owners

1 Badar Mining Lease 13th Mar 02 122

PEL (Operator) 26.32 %

OGDCL 50 %

Sherrit (Canada) 15.79 %

Spud 7.89 %

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2 Hasan D&PL 3rd Apr 03 37.05

PEL (Operator) 26.18 %

PPL 35.52 %

Pyramid (Canada) 15.79 %

GHPL 22.50 %

3 Sadiq D&PL 3rd Apr 03 40.72

4 Khanpur D&PL 3rd Apr 03 41.78

5 Hamza

(DOC under process) 7th Sep 04 173.12

6 Kandra D&P Lease 5th Jan 06 286.08

PEL (Operator) 37.5%

Frontier Holdings

(Canada) 37.5%

GHPL 25%

On Shore Exploration Licenses

S. No.

Exploration License Name & Block No.

Award Date /Status

Area (Sq Km)

Working Interest Owners

1 Mirpur Mathelo (2769-9) 3-Jun-02 1030.7 PEL (Operator) 35%

Frontier Holdings

(Canada) 35%

GPXP 25%

GHPL 5%

2 Salam (2769-13) 20-Dec-02 200.22 PEL (Operator) 37.5%

Frontier Holdings

(Canada) 37.5%

GPXP 25%

3 New Larkana (2768-10) 3rd June 05 2426 PEL 100%

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Badin IV North ( 2468-6)

5th Jan 06

1246.03

PEL (Operator) 47.5%

Frontier Holdings

(Canada) 27.5%

GPXP 25%

5 Badin IV South (2468-5) 5th Jan 06 1265.3 PEL (Operator) 47.5%

Frontier Holdings

(Canada) 27.5%

GPXP 25%

6 Jhangara (2567-5) 27th Apr 05 357 PEL (Operator) 40.00%

OGI 60.00%

7 Kaloi (2468-8) 25 Sept. 2007 2485.14 PEL 100%

8 Sanghar East (2669-5) 25 Sept. 2007 2493.13 PEL 100%

9 Mirpur Khas West

(2568-16)

25 Sept. 2007

199.26 PEL 100%

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Offshore Exploration License

1 Offshore Indus-J (2266-4) 29th Sept. 06 2436.3 PEL (Operator) 100% Overseas Petroleum Concessions Morocco

1 Haha Permits -1 June 20, 2007 1,608 sq. kmPEL (Operator) 75%

ONHYM 25%

(State Oil & Gas Company of

Morocco)

Haha Permits - 2 June 20, 2007 1,760 sq. km

Haha Permits -3

June 20, 2007 1551 sq. km

Myanmar

2. PSCs Block-O (Pathein)

PSCs Block-J (Mawlamyine)

Nov. 2013

Nov. 2013

9069 sq km

11194 sq km

PEL 100%

PEL 100%

PEL’s Working Interest in Sukkur Block Operated by Mari Gas Company Ltd

1 Sukkur (2768-9) 7th Jan 06 2435.4 PEL 41.176%

Mari Gas (Operator) 58.824%

PEL has planned to drill a number of exploration and development wells during

next 3 years. A brief history of the blocks and current status is given below. BLOCK 2768-3 (BLOCK - 22)

The Government of Pakistan granted Exploration Licence to PEL over Block

No. 2768-3 (Block-22) in November 1994. The concession covers an area of

397 Sq. Kms. The Working Interest Owners are:-

Pakistan Petroleum Limited 35.52%

Petroleum Exploration (Pvt) Limited 26.18% Operator

Pyramid Energy International Inc. (Canada) 15.79%

Government Holdings (Pvt) Limited 22.50%

After successful completion of geological & geophysical work including

acquiring seismic survey, gas was discovered in commercial quantity in five out

of six exploratory wells drilled. Twenty (20) MMSCFD gas is being supplied to

Sui Northern Gas Company Limited (SNGPL) after erection and commissioning

of Gas Purification Plant (MDEA Plant), Gas Dehydration Plant and laying of

6.5 KM of 6" pipeline. Development and Production leases over Hasan,

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Khanpur and Sadiq Gas Fields were awarded on 3 April 2003. Wells drilled in

this Block and estimated reserves are given below.

Structure Maximum Depth

Estimated

Reserves

BTU

Hamza Structure 1346.3M 28.45 Bscf 640

Hasan Structure 1132M 208 Bscf 652

Sadiq Structure 1172M 52 Bscf 734

Yusuf Structure 1450M - abandoned ---

Khanpur Structure 1230M 51 Bscf 850 Hasan-4 Development Well Petroleum Exploration (Pvt) Ltd completed the drilling of Hasan-4 development well in Block 2768-3 (Block-22) in District Shikarpur, Sindh. The well was spud-in on 3 April 2014 and drilled to its target depth of 1,080 meters in the Sui Main Lime Stone. The well flowed natural gas at the rate of 6.4 MMCFD. The well will be connected to the existing combined purification facilities of Block-22 gas fields namely Hasan, Khanpur and Sadiq from where natural gas is supplied to SNGPL. BLOCK 2768-6 (BLOCK – KANDRA Mining Lease) A Petroleum Exploration License over Block 2768-6 (Kandra) was granted to Petroleum Exploration (Pvt) Limited and the Government Holdings on March 27, 1999. Subsequently Frontier Holdings Ltd farmed-in with 37.5% interest. The current Working Interest Owners are PEL 37.5%, Frontier Holdings Ltd 37.5% and Government Holdings (Pvt) Ltd 25%. This Block covers an area of 456.13 Sq. Kms in the administrative districts of Larkana and Noushero Feroz in the Sindh Province of Pakistan. The Block remained under exploration of Premier Exploration Pakistan Limited of UK upto December 1998. Premier drilled two wells in this Block and discovered gas with high C02 content. Two exploratory wells Kandra-1 and Kandra-2 have established low BTU gas reserves of over three Trillion Cubic Feet (TCF). Gas discovered in this Block can be utilized for power generation owning to the fact that the BTU varies from 242 to 148 BTU/SCF. The proposed Combined Cycle Kandra Power Plant of 120 MW will be fueled by 40 MMSCFD of processed gas from the Kandra Gas Field. The processed Kandra Gas with a calorific value of around 300 Btu/Scf will be blended with 10 MMSCFD pipeline quality gas from Sui Southern Gas Company Limited (SSGCL) to attain a heating value of around 430 Btu/Scf, which is suitable for power generation.

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Third exploratory well, (Kandra-3), was spuded on 21 December 2003. The well has established gas in commercial quantities however, the heating value is 143 BTU/SCF. The development and production lease was granted on 5th January 2006. The development plan are in hand to develop the Kandra Field on fast track for sale to Kandra Power Company. The joint venture partners after farm in of GPX Kuwait are: Exploration Petroleum Exploration (Pvt) Ltd (Operator) 35% Frontier Holding Limited, Canada 35% GPX, Kuwait 25% Government Holdings (Pvt) Ltd 5% (Carried)

SML Development Petroleum Exploration (Pvt) Ltd (Operator) 37.5% Frontier Holding Limited, Canada 37.5% GPX, Kuwait 25%

BLOCK - 20 C (Badar D&P Lease) PEL acquired 26% working interest in this Block. A well drilled and named as Badar -1 has established the gas reserves to the tune of approximately 43 Billion Cubic Feet (BCF) with heating value of 599 BTU / CFT. The gas sales to SNGPL commenced on 8 April 2006 and presently 14 MMSCFD gas is being supplied to the gas utility, SNGPL. After recent reprocessing, new map has been generated, which suggest the 92 BCF reservoirs 132 BCF The Working Interest Owners are: Petroleum Exploration (Pvt) Ltd. (Operator) 26.32% Sherrit International (Canada) 15.79% Spud (Australia) 7.89% OGDCL 50.00%

Badar-2 Development Well A development well, namely Badar-2, in Badar Mining Lease in Ghotki District Sindh, was spud-in on 15 April 2014. It has been drilled up to its target depth of 1,445 meters in Sui Main Lime Stone. The well is expected to produce about 13MMCFD gas. It is being connected to the existing dehydration facilities from where gas from Badar-1 is being supplied to SNGPL. BLOCK - 2769-9 (Mirpur Mathelo) The Government of Pakistan granted on June 03, 2002 a Petroleum Exploration Licence to the Joint Venture of PEL and Government Holdings (Pvt) Limited over Block No. 2769-9 (Mirpur Mathelo) covering an area of

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1030.68 square kilometers in Zone III in districts Sukkur and Ghotki of Sindh province. The working interests in this block are: Petroleum Exploration (Pvt) Ltd (Operator) 35% Frontier Holding Limited, Canada 35% GPX, Kuwait 25% Government Holdings (Pvt) Ltd 5%

The area has potential of producing gaseous hydrocarbons from shallow reservoirs like Sui Main Limestone, Sui upper Limestone and Habib Rahi Limestone of Eocene Age. In addition to the Lower Goru sands of Cretaceous age which is the primary objective. Mirpur Mathelo E. L. has 1200 Line-Km 2D seismic data from previous vintages. Another 253 Line-km new data was acquired by the present JV in 2007. This seismic data has been extensively used in mapping the structures at Lower Goru level. Also a Regional Geological Study was carried out by Fugro Robertson in 2008. All this data was used and three structures were identified. The biggest of the structures with an area of 21 km2 and the expected reserves of 335 BCF was tested by well Rafay-1 (TD 3665m). The well was spuded on 23rd February, 2009 and it reached TD on 1st May of 2009. This well drilled through the Lower Goru Basal sands and encountered some sand beds with porosity of up to 9%. Three DSTs were carried out. Two of these DSTs had strong gas shows but didn’t produce commercial quantity of gas because the formation was tight and of low permeability. Due to unmeasureable flow of gas during two DSTs, the well was temporarily suspended. Wireline logs and DSTs results are being evaluated for future course of action. Future Programme: The Joint Venture (JV) has fulfilled its original commitment and is now eligible to get one year extension by committing one exploration well. There are still a number of good structures in Mirpur Mathelo block. In addition to Lower Goru, there are also shallow (1500m deep) structures in Sui Main Limestone (SML) which are producing gas in Mari, Kandhkot, Qadirpur and Block 22 fields in the East, North and West respectively. However, a minimum of 100 Line-Km 2D seismic survey needs to be carried out to firm up the known Lower Goru and SML structures for drilling. BLOCK – 2769-13 (Salam) The Government of Pakistan granted an Exploration Licence to Petroleum Exploration (Pvt) Ltd over Block No. 2769-13 (Salam) on December 20, 2003. Salam block is located in the district Ghotki and Jacobabad of Sindh province covering an area of 200 square kilometers. The Block is located in Pakistan’s Central Indus Basin. It is due west of Khandkot and Qadirpur gas field and due east of Premier’s 1994 gas discovery at Badar. The block was formerly licensed to Qadirpur consortium (OGDCL,

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Premier, PPL and Burmah), which shot seismic lines and drilled the Qadirpur West-1 Well in 1993. The working interests of the Block are: Petroleum Exploration (Pvt) Ltd. (Operator) 37.5% Frontier Holding Limited 37.5% GPX, Kuwait 35%

The minimum work commitment was as follows: Licence Year Minimum Work

Phase – I

First Year Data ReviewG & G Studies

Second Year 30 Line KM 2D Seismic Acquisition G & G Studies

Third Year One Exploratory Well to test tertiary Carbonate (Contingent) Optional

Phase – II Fourth YearFifth Year

Current Status: The present joint venture undertook 88 Km 2D Seismic in 2007 and another 46 line Km 2D Seismic in March 2010. Based on the interpretation of these surveys, a robust, four way dip closure structure of mean recoverable gas reserves of 60 BCF has been mapped. However the drilling of this structure can only be done from this island between Indus River Channels. At present the logistics of the drilling and its cost are being carried out. BLOCK – 2768-10 (New Larkana) PEL’s working Interest 100% License Number 352/PAK/2005 Province Sindh Geological Province Middle Indus Basin Prospectivity zone III Area 2425.96 sq. km Date of grant: 3 June 2005 Minimum Work Programme

Contract Year

Minimum Work Minimum Expenditure (US Dollars)

Initial Term

Phase-I First Year Geological and Geophysical Studies Acquisition of 2D 100 Line Kms seismic

100,000

500,000

Second Year

Geological and Geophysical Studies One exploratory well upto a depth of 1,700 meters or 100 meters inside SML, whichever comes earlier (Firm)

100, 000

1,250, 000

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Third Year One exploratory well upto a depth of 2,300 meters or 100 meters inside Sembari/Chiltan whichever comes earlier One exploratory well upto a depth of 17,00 meters or 100 meters inside SML whichever comes earlier

1,500, 000

1,250,000

TOTAL FIRM EXPENDITURE

4,700,000

Phase-II Fourth Year Fifth Year

Current Status Looking for seismic crew availability. Block 2467-6 (Badin IV North) The Block, with an area of 1246.03 sq. km, located in districts of Thatta, Hyderabad & Mirpur Khas was awarded on January 5, 2006. Block’s potential is estimated to be around 300 – 350 BCF gas and about 2-5 million barrels oil. Working interest owners are: PEL (Operator) 37.5% Frontier Holdings(Canada) 37.5% GPXP 25%

Minimum Work Programme

Block 2468-6 (Badin IV North) Date of award: 5 January 2006

Extension in 3rd year Exploration Licence (Phase-1) until Dec 7, 2010

Term Phase Contract year Minimum Work

Minimum Firm

Commitment (million US$)

Status

Initial Term

Phase-1

First Year

G & G studies 0.05 Yes

Acquisition, Processing & interpret. of 150 Line 2D seismic survey

1.1

2D seismic data acquisition: 305.4 line km. Work commitment over fulfilled

One exploratory well to test the potential of Lower Goru Sands by drilling 50 m inside Basal Sands or 2,300 m, whichever is shallower

1.1 Planned

Second

Year

G & G studies 0.05 Yes

Reprocessing & interpretation of existing seismic data 0.05

Reprocessed vintage 2D seismic : 289.25 line km

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One exploratory well to test the potential of Lower Goru Massive Basal Sands by drilling 50 m inside the Massive Basal Sands or 2,600 m, whichever is shallower

1.3 Planned

Third Year

G & G studies 0.05 Yes

One exploratory well to test the potential of Sembar Sands by drilling 50m inside the Sembar Sands or 3,100m, whichever is shallower

1.5

Jamali Deep-1 drilled: 31 Dec 2008 - 5 May 2009 Total Depth 3862m 119m into Sembar Formation

Total Firm Commitment 5.2

The established reservoirs in the block are the multiple sand bodies of Cretaceous age separated by shale units often termed as Upper, Middle and Basal Sands. These are proved exploration targets and have contributed over 10 % of Pakistan’s gas and over 33 % of oil production. 305 line km seismic was acquired in the block to identify and firm up the leads that were identified on old vintage. A number of leads were identified out of which lead -1 (Jamali Deep-1) was upgraded to a drillable prospect and was drilled down to 3862 m to test the potential of Lower Goru sandstone reservoirs. Based on the drilling data and evaluation of wire line logs, three drill stem tests were conducted in Basal Sands of Lower Goru reservoir. However, the well failed to produce any measureable quantity of hydrocarbons due to its tight nature and low permeability. Due to unmeasureable flow of gas during DSTs the well has been temporarily suspended. Wireline logs and DSTs results are being studied for future course of action. In order to fully understand the reasons of this failure and to make a way forward for successful finds; a comprehensive evaluation of all the leads have been carried out. Drilling program will resume soon. Drilling activities PEL completed the drilling of 2 commitment wells in the block. The first well, Jamali Deep-1, was drilled to a depth of 3871 m in Sembar Formation, which resulted in commercially unviable tight gas discovery in reservoirs of Lower Goru Basal Sands. The second exploratory well Wahid-1 was drilled to a target depth of 2003 m in Middle Sand of Lower Goru Formation, which was plugged and abandoned as a dry hole. Based on the interpretation of 3D seismic data acquired within the block, PEL has delineated two more prospects as under:

1. Zainab Upper and Middle Sand prospect 2. Hajira Basal Sand Prospect

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Block 2468-5 (Badin IV South) The Block, covering an area of 1265.33 sq. km, located in districts of Thatta, Hyderabad & Mirpur Khas was awarded on January 5, 2006. Block’s potential is estimated to be around 250 – 350 BCF gas and about 5 to 10 million barrels of oil. Working interest owners are: PEL (Operator) 37.5% Frontier Holdings (Canada) 37.5% GPXP 25%

Work Programme

Block 2468-5 (Badin IV South) Date of award: 5 January 2006

Term Phase Contract

year Minimum Work

Minimum Firm

Commitment (million US$)

Status

Initial Term

Phase-1

First Year

G & G studies 0.05 Yes

Acquisition of 100 Line km 2D

0.7

2D seismic data acquisition: 492.8 line km Work commitment over fulfilled

01 Exploratory Well upto 2,500 m (100m inside Upper Sand or 2,500m, whichever is shallower)

1.25 Planned

Second Year

G & G studies 0.05 Yes

Reprocessing

0.05

Reprocessed vitage 2D seismic : 629.15 line km

01 Exploratory Well upto 2,500 m (100m inside Upper Sand or 2,500m, whichever is shallower)

1.25 Planned

Third Year

G & G studies 0.05 Yes

01 Exploratory Well upto 2,500 m (100m inside Upper Sand or 2,500m, whichever is shallower)

1.25 Planned

01 Exploratory Well upto 2,800 m / Basal sand (50m inside Basal Sand or 2,800m, whichever is shallower)

1.3 Planned

Total Firm Commitment 5.95

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Ayesha-1 Exploratory Well Petroleum Exploration (Pvt) Ltd made a significant discovery of hydrocarbons in Badin South IV Block. The well named as Ayesha-1 was spud-in on 31 December 2013 and completed on 14 February 2014 after achieving the target depth of 2400 meters in the Lower Guru Upper Sands. The well flowed 11.32 MMCFD of good quality natural gas with a heating value of 967 BTU and 115 barrels of 57o API condensate per day with a well head pressure of 2000 PSI. It will also produce 10 tons LPG daily. Haleema-1 Exploratory Well The well was spud-in on 27 February 2014 and completed on 12 March 2014. Haleema-1 well was drilled upto a depth of 1,849 meters in the Lower Guru A, B & C Sands. The open logs were run by M/s Schlumberger and interpreted by M/s Hotwell, our Canadian consultant. Interpretation was also carried out by our joint venture partners and M/s Schlumberger. This was followed by FMI which was also carried out by M/s Schlumberger. Unfortunately all the interpretations confirmed that well is water bearing. It was, therefore, unanimously decided to plug and abandon the well.

PEL is committed to drill 4 exploratory wells in Lower Goru and Sembar Sands

during the initial term of three years. It has also acquired 484 line km 2D

seismic, purchased 2829 line km 2D and 627 sq. km 3D vintage seismic.

Badin area is a proven oil district, established in 1983 and thereafter 59 oil and

gas discoveries have been made in the region.

Block 2567-5 (Jhangara)

The Block, covers an area of 358 sq. km, located in district of Dadu and was

awarded on April 27, 2005. Block’s potential is estimated to be around 250 –

300 BCF gas.

Working interest owners are:

PEL (Operator) 40.00%

OGI 60.00%

Work Programme

The well commitment of the first 2 years has been fulfilled. Currently PEL is

planning to acquire 100 KM 2-D seismic survey.

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Block 2768-9 (Sukkur)

This Block with an area of 2435.4 sq. km was awarded on January 2006.

The working interest holders are:

Mari Gas Company Ltd 65.00% (Operator)

PEL 35.00%

Discovery at Koonj-1A Well

Recently a gas discovery was made in Sukkur Block in which PEL has 35%

stake. Koonj-1A was spud on April 22, 2008, and drilled to a total depth of 1475

m to test the Sui Main Limestone. The well initially flowed 8.5 MMSCFD @

Choke size 48/64” and after acid job the well flowed @ 14.1 MMSCFD with

WHFP 1306 Psi @choke Size 48/64”. The heating value of the Koonj 1 A gas is

860 btu/Scf. The well is currently producing 2 MMSCFD.

Sukkur Exploratory Well-3:

On the basis of latest seismic interpretation, Mari Gas Company Ltd (the

Operator) and PEL have established a new prospect, 15 meters up dip from

Indus-1B well and have decided to drill an exploratory well to test Sui Main

Limestone. The well called Mian Mior was staked out on February 14, 2010 at

SP 735 line 94-16. It was drilled down to 1250 m which has been successfully

completed as gas producer.

OFFSHORE ACTIVITIES

Petroleum Exploration (Pvt) Ltd has entered the realm of offshore exploration.

The Company has executed an Offshore Production Sharing Agreements with

Government of Pakistan over Block No. 2266-4 (Offshore Indus-J) covering an

area of 2436.3 kms The Block is located in the ultra deep waters in the

Exclusive Economic Zone of Pakistan in the Arabian Sea. It is worth mentioning

that Petroleum Exploration (Pvt) Ltd is the first Pakistani private sector

company that is venturing in the capital intensive offshore exploration. During

first two years an investment of US$ 10 million is envisaged. In the likely event

of identifying drillable prospects an expenditure of US$ 35 million is anticipated.

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OVERSEAS EXPLORATION

MOROCCO

PEL is also privileged to have become the first private sector Pakistani

company that is venturing in the overseas exploration in North Africa. It has

signed Petroleum Agreement and Association Contract for exploration and

exploitation of hydrocarbons in three blocks called Haha-1, Haha-2 and Haha-3

in the Kingdom of Morocco. PEL holds 75% working interests and is the

operator while its joint venture partner ONHYM, the Moroccan state oil & gas

company, retains 25% stakes. These blocks with an area of 4,919 Sq. Km, are

located 90 KM North of the coastal town of Agadir. The Western boundary of

the blocks follows the Atlantic Ocean coastline.

PEL has recently signed a drilling rig contract with a renowned Chinese

company. It has contracted a state of the art, brand new 1500 HP Top Drive

System Drilling Rig that was shipped out of Beijing to Morocco. The cost of the

well will run into millions of US dollars. The drilling of fist exploratory well

Tamanar-1 commenced in November 2014. It is expected to reach the target

depth soon.

MYANMAR

Petroleum Exploration (Pvt) Ltd (PEL) has expanded its overseas portfolio of oil

& gas exploration. It has entered the realm of oil & gas sector of Myanmar and

has been granted two PSCs blocks namely Block-O (Pathein) and Block-J

(Mawlamyine). The blocks are spread over an area of 9069 sq km and 11,194

sq km respectively. Existing PSCs stipulate a 3 years exploration period

followed by 20 year production lease with royalty of 12.5%. A reduction in tax

rate from 30%-25% and the extension of 3 years tax holiday to 5 years is under

active consideration of Myanmar authorities. Contact: Mr. Shahbaz Zaheer, Director Mob: +92-321-5212122, +92-333-5432122 Tel: +92-51-2287170-74 (5 Lines)

Fax: +92-51-2287154 & 55 (2 Lines)

E-mail:shahbaz@pepl.com.pk

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Nortech Surveys Pakistan (Pvt) Limited

House 66, Street 25, Sector F-10/1, P.O. Box 1440, Islamabad – Pakistan Tel: 92-51-2103247-49 (3 Lines), Fax: 92-51-2104572 - 73 (2 Lines)

E-mail: pel@pepl.com.pk, peplshzd@isb.comsats.net.pk & shahzadintl@nayatel.pk Web: www.shahzadintl.com.pk

Nortech Surveys Pakistan (Pvt) Limited is a joint venture of Shahzad International and Nortech Geomatics Inc. Canada. It is incorporated with Corporate Law Authority of Pakistan under the Companies Ordinance, 1984 and is in operation since December 1985. Nortech Surveys is a multi-disciplinary, Survey, Engineering Consulting and Contracting Company providing practical geodetic consulting, topographical/hydrographic surveys, mapping, positioning services and airborne digital video/laser profiling. These services are being extended to Government Agencies, Petroleum, Utility, Transportation and Engineering / Construction Sectors. Nortech uses state of the art technology including GPS, CAD Mapping, feature coded electronic field data capture, digitizing/scanning of all types of orthometric imagery and satellite image processing. A full compliment of services is offered in the following areas of work: Practical Geodetic Consulting Services. GPS Positioning and Surveying. Land Survey Cress using total stations – topographic surveys, pipeline

route surveys, surveys for highways/roads, surveys for powerlines etc. Automated Land Surveying Techniques including complete CAD and GIS

Facilities. In-House CAD Drafting. Full Range of Mapping and Satellite Imagery Services. Fully integrated short, medium and long range marine navigation and

positioning services. Integration of airborne remote sensing systems including Nortech’s unique

Digital Video Geographic System (DVG), a survey system for Linear Projects, Roads, Pipeline and Powerlines.

Nortech Surveys Pakistan (Pvt) Ltd. has so far completed more than 40 projects. The projects completed include GPS and Topo surveys in the snow covered mountains and dense forests in the Northern Areas, pipeline route survey in the desert and marshy areas of Pakistan. Well surveys completed include deserts as well as hilly track. Nortech has completed an alignment survey of a river tunnel. The company has also provided CAD and Digitization Services to a number of companies. Nortech’s personnel operate under strict procedures to ensure complete satisfaction for clients, including systematic quality control procedures at all phases of survey operations. The company’s ability to deliver the final product of a project on a timely basis results from years of experience operating on a worldwide scale. Contact:

Tel: 92-51-2287170-75 (6 Lines), Fax: 92-51-2287154 & 55 (2 Lines) E-mail: pel@pepl.com.pk, peplshzd@isb.comsats.net.pk

& shahzadintl@nayatel.pk

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GLOBAL MINING COMPANY (PVT) LTD

Shahzad International, with more than twenty five (25) years of experience in the energy and mineral sectors of Pakistan, has been granted the following exploration licenses by the Government of Gilgit and Baltistan for:

1. GOLD in Hushe and Ranthak, Ganche District;

2. RUBY and MARBLE in Ahmadabad-Hunza;

3. AQUAMARINE in Dasso-Shigar; and

4. Copper in Skardu Area In spite of the daunting investment challenges of mining, for example capital intensive investments and long gestation periods before financial returns, Shahzad International recognizes mining as an attractive business opportunity. To streamline the corporate exploration and mining activities, Shahzad International formed and incorporated in October 2006, a new mining company – Global Mining Company (Pvt) Limited (GMC) - as the tenth member of the Shahzad International Group. EXISTING LICENSES (i) Gold: First pass sampling for gold in Hushe area has established values upto1.5 g/t gold. An extended field study for gold in Ranthak area is due to commence shortly. During earlier exploration, by Ausaid and PMDC, this area yielded very significant gold values in bed rock chip samples. Through sampling and analysis of Ranthank rocks, GMC has confirmed presence of potentially profitable source rocks of gold. Global Mining Company (GMC) has been granted exclusive exploration licences of Gold (Surgun) by the Govt. of Azad Jammu & Kashmir. Field activities for technical evaluation of the prospects will be undertaken during the forthcoming field season. (ii) Ruby: Geological exploration and sampling for ruby in Ahmadabad – Hunza area was undertaken in the licensed area during summer 2006 to 2009. The presence of ruby in the area has been confirmed. Exploration work has also revealed existence of some other associated minerals of value in the area. These include flake graphite and pure white marble. Application for Mining Leases for Ruby and Marble are in process. (iii) Aquamarine: A first pass field study to explore aquamarine in Dasso, Shigar area, Skardu district, was completed in summer 2006 to 2009. Presence of aquamarine in pegmatites of the licence area was confirmed. In addition, the technical team of the Company observed the presence of additional minerals, for example, feldspar, beryl, rock crystal and lithium mica. Mineral testing and market study is in progress to evaluate potential of integrated mining/processing in this area. (iv) Copper: During field studies in Summer 2006 company experts located significant copper mineralization at a favourable location in Skardu Area. Mining Licences in Azad Kashmir: Global Mining Company (GMC) has been granted exclusive exploration licences of Gold (Surgun) and Pozzolana

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(Kalamulla), by the Govt. of Azad Jammu & Kashmir. Field activities for technical evaluation of the prospects is in hand. GMC's provisional licences for Bauxite and Coal are likely to be regularized before the start of coming field season. The company’s application for an exclusive Reconnaissance License was approved by the Government of Gilgit Baltistan. In summer 2007 to 2009 GMC field team completed geological mapping and delineation of source rock. Geophysical studies were done in 2008 for 3-D assessment of mineralization. With the addition of a copper prospect to its portfolio, GMC is proud to be one of the first mining companies, public or private, to have ventured into copper exploration in Gilgit Baltistan. Application for mining lease is in process. SOLID FUELS Pakistan is blessed with resources of one of the most extensive coal fields of the World, mostly located in the Sindh Province. The Geotechnical studies carried out by Geological Survey of Pakistan and China Northeast Geological Survey Bureau have confirmed adequate coal reserves on the eastern side of River Indus in the vicinity of Mullakatiar. The coal field is located at a distance of about 30 km south of Hyderabad. The coal is sufficient in quantity and suitable to set up a 50 to 100 MW coal based power plant. An MoU was signed between Shahzad International and the Government of Sindh in August, 2009. Exploration License over an area of 17,297 acres, for an integrated coal mining and power generation project, was granted by the Government of Sindh in December, 2009. A private Consultant was hired who prepared professional documents; Expression of Interest, Scope of Work, Terms of Reference and the Draft Agreement for conducting Feasibility Study of integrated coal mining and power plant project, based on Sonda coal, Technical and Financial proposals for hiring an International Consultant Company were invited from 5 pre-qualified companies. Proposals were received from a Germany company and two Chinese companies. An internal Evaluation Committee, constituted by the Chairman, has evaluated the proposals received from these companies. The committee has finalized recommendations for approval of the Chairman, for award of contract to the most competent and competitive company for conducting feasibility study of the project. DATA BASE Pakistan’s mineral wealth is vast and varied and GMC experts are scanning the full spectrum of investment opportunities in the mineral sector. A data base, is being compiled of available exploration information for evaluation in order to chose prospects that offer the best profitability potential. GMC’s goal is to maintain a portfolio of mineral properties at various stages of development from greenfield exploration to fully operating mines and metallurgical plants. INVITATION TO JOINT VENTURE PARTNERSHIP Shahzad International Group and its subsidiary, Global Mining Company (GMC) seeks a Joint Venture partnership with reputed foreign companies for exploration, evaluation and development of gold, aquamarine and ruby, along with other valuable minerals in its licensed areas. Contact: Mr. Noor Mohammad Khan

Mobile: 0300-8371892, Tel (Direct) 92-51-2103243

Tel: 92-51-2103287-,0512103540 Fax: 92-51-2104572, 2104573 E-mail: pel@pepl.com.pk, peplshzd@isb.comsats.net.pk & shahzadintl@nayatel.pk

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KANDRA POWER COMPANY (PVT) LTD

The Kandra Power Company (KPC) was officially registered by the Securities

Exchange Commission of Pakistan (SECP) on 9th of May 2007. The KPC is all

set to established a 120 MW Kandra Power Project, estimated to cost US$ 160

million, in joint venture with Frontier Holdings Limited (FHL) a subsidiary of Jura

Energy Corporation).

PEL has a dedicated team of professionals, petroleum explorationists,

geologists, geophysicists and financial experts. The Company has so far drilled

12 wells in joint ventures involving an expenditure of over US$ 33 million. It is

presently operating 5 Oil & Gas Development & Production Leases, one Mining

Lease, 9 Onshore Exploration Licenses and 2 Offshore Exploration Licenses /

Production Sharing Agreements. Besides, PEL has also 35% working interest

in Sukkur Block operated by Mari Gas Company Limited.

Frontier Holdings Limited (FHL) is a wholly owned subsidiary of Jura Energy

Corporation which is a publicly listed Canadian Company with over Cdn. $70

million in assets and is quoted on the Toronto Stock Exchange with its Head

Office in Calgary and Branch Offices in Islamabad and Dubai, UAE. FHL has

acquired 50 % share in the Kandra Power Plant Project and a 37.5% share in

the low Btu Kandra gas field which will provide processed Kandra gas to the

Kandra Power Plant. The Kandra Power Company plans to set up a Power

Plant to generate 120 MW of electric power based on processed Kandra gas

blended with pipeline quality gas.

The proposed Combined Cycle Kandra Power Plant of 120 MW will be fueled

by 40 MMCFD of processed gas from the Kandra Gas Field. The processed

Kandra Gas with a calorific value of around 300 Btu/scf will be blended with 10

MMCFD pipeline quality gas from Sui Southern Gas Company Limited

(SSGCL) to attain a heating value of around 430 Btu/scf, which is suitable for

power generation.

The Government of Pakistan, on the basis of the Economic Coordination

Committee of the Cabinet (ECC) decision taken on 1st September 2005, has

allocated 5 MMSCFD pipeline quality gas for blending with processed Kandra

gas to generate 60 MW of electricity. Subsequently, in its meeting on 10th May

2007, the ECC decided that Low Btu gas fields (below 600 Btu/scf) would be

entitled to allocation of pipeline gas subject to the condition that 50% of the

heating value for power generation is provided by the Low Btu Gas as fuel.

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Based on this policy guideline PEL bas been allocated an additional 5 MMCFD

pipeline quality gas, so that 120 MW power is generated using a blend of

pipeline gas and processed Kandra gas.

The Kandra Gas Field owned and operated by PEL has an Initial Gas in Place

(IGIP) in the “proved plus probable” category of 2.8 Trillion Cubic Feet (Tcf)

which is more than sufficient for the fuel requirements of the proposed Kandra

Power Plant for more than thirty (30) years.

The Kandra Power Company plans to commission the Combined Cycle 120

MW Power Plant in Sindh, with two (2) new Gas Turbines of 40 MW each with

associated two new Heat Recovery Steam Generators (HRSG) along with a

new Steam Turbine of 40 MW.

A Letter of interest (LOI) has been issued to PEL as the “Main Sponsor” of the

Kandra Power Project, by the Private Power and Infrastructure Board (PPIB),

Ministry of Water and Power, in January 2008 and was extended in June 2009.

Letter of Support (LOS) from PPIB shall be secured after successful completion

of Security Packages and others. Project is expected to achieve Financial

Close by October 9, 2011 and expected COD for 120 MW (net at site) Low Btu

Combined Cycle Kandra Power Plant shall be carried out within 24 months

after achieving Financial Close.

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FACT SHEET

Contact: Syed Haider Ali

General Manager Address: 20, Margalla Road, Sector F-8/3, P.O.Box 1440, Islamabad, Pakistan Tel: (Dir): 0302-8293569 Tel: 92-51-2287170-74 (5 lines) Fax: 92-51-2287154 & 55 (2 lines) E-mail: pel@pepl.com.pk & kpc@shahzadintl.com.pk Website: www.shahzadintl.com.pk

1 Project Name Kandra Power Project

2 Project Location The Thermal Power Complex will be located near the Kandra Gas Field in Sindh Province, Pakistan

3 Project Brief and Configuration

120 MW Combined Cycle Power Plant (CCPP) on BOO basis utilizing low Btu processed Kandra gas for two (2) Gas Turbines (2x40 MW); Two dedicated Heat Recovery Steam Generator (HRSG) and one Steam Turbine of 40 MW.

4 Project Statistics An area of approx. 25 acres is being acquired for the project. Water for the power plant will be taken from the subsoil water aquifer and also from a nearby perennial canal on the Indus River. Power will be supplied to NTDC/WAPDA through the nearby 132 KV transmission line. Pipeline gas for blending will be obtained from the nearby High Pressure system of Sui Southern Gas Co Ltd (SSGCL).

5 Project Costs in US$

US$ 160 million.

6 COD (Commercial Operation Date)

36 months from the grant of a Letter of Support (LOS) by PPIB (Private Power & Infrastructure Board), Ministry of Water and Power, Government of Pakistan and 24 months after achieving financial close.

7 Internal rate of Return (IRR) / Return On Equity (ROE)

16% indexed, dollar based IRR

8 Project Partners Petroleum Exploration (Pvt) Ltd (PEL) (main sponsor) with Frontier Holdings Limited (FHL) a Canadian Energy firm, as JV partner.

9 Power Purchaser National Transmission and Dispatch Company (NTDC)/WAPDA shall purchase electricity according to a PPA from KPC on a Tariff approved by NEPRA.

10 Implementation Agreement (IA)

Government of Pakistan is providing sovereign guarantee according to Implementation Agreement (IA).

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SHAHZAD TRAVELS (PVT) LIMITED 2, Al-Asghar Plaza, Jinnah Avenue, Blue Area, Islamabad, Pakistan

Tel: 92-51-2276182-84 (3 Lines), Fax: 92-51-2276191 E-mail: peplshzd@isb.comsats.net.pk

Web: www.shahzadintl.com.pk

A subsidiary of Shahzad Group of Companies incorporated as Shahzad Travels (Pvt) Limited, caters for the travel needs of national and international clientele. The IATA approved Travel Agency is run on most modern lines by professionals who excel in the field of travel business and provide prompt service with innovative excellence, The Agency is equipped with most modern state-of-the-art computer reservation system giving round the clock service. Courtesy and quick response from the experienced staff greets the clients the moment they step into the office. Their total commitment ensures that esteemed clients travel wherever they want to, in the most convenient and comfortable way. The Agency also arranges foreign tours and hotel reservations for valued clients. Expertise of Shahzad Travels include:

Planning of travel itineraries

Economical inbound and outbound package tours

Worldwide hotel reservations and car rental services at most economical terms with maximum discount

Services and assistance available at all international airports, on request

Services assistance and advice on all matters related to visa, State Bank, Foreign Exchange and other Government Agencies

Assistance in obtaining visas.

Reconfirmation of flights for all Foreign Delegation/Visitors without any charges.

Credit facility upto 15 days

Shahzad Travels are providing services to a number of multinationals and international oil companies besides a large number of domestic customers and circle of its clientage is continuously expanding. For Shahzad Travels every client is a V VIP. Contact: Tel: 92-51-2276182-84 (Three Lines), Fax: 92-51-2276191 Tel: 92-51-2276178 / 2276188, Mob: 92-333-5101052

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FLASH SECURITY SERVICES (PVT) LTD.

House 66, Street 25, Sector F-10/1, P.O. Box 1440, Islamabad – Pakistan Tel: 92-51-2103287 & 2104184, Fax: 92-51-2104573

Web: www.shahzadintl.com.pk

Flash Security Services Limited specializes in the provision of ‘par excellence’ security services to its clients all over Pakistan. The company’s pride lies in a well-equipped and highly trained security staff who are known to serve to the fullest satisfaction of clients. Flash Security Services (Pvt) Ltd meets all types of security requirements for a wide range of clientele. The company was registered on September 06, 2001 under Companies Ordinance 1984 (XL-VII). Flash Security Services is currently providing security services to a number of organizations, institutions, business houses, firms, and some multinationals companies working in Pakistan. Its sphere of activities is constantly expanding. The Company is managed by experienced executives who have practical experience of many years to their credit. It has qualified and motivated staff who excel in the art of management, training and possess practical field experience in security assignments. The Company has a large pool of highly trained guards who have been recruited from amongst the retired armed forces personnel. A large number of them are from the elite Special Services Group of the Pakistan Army. The Company is presently providing services in the following areas:-

Armed Security Guards Security Equipments Visitors Control Facilities Bullet Proof Jackets Video Monitoring Weapon, explosive and metal detectors Vehicles search equipment Transportation of Valuables Fire Fighting Equipment

Contact: Mr. Zafar Iqbal Mob: 92-300-8506005 Tel: (D) 92-51-2214092