Pel Revenue

1

PETROLEUM EXPLORATION (PVT) LIMITED

Courtesy: Lamprell plc

www.shahzadintl.com.pk

ENGAGED IN DIVERSE BUSINESS PURSUITS….

SHAHZAD INTERNATIONAL GROUP OF COMPANIES

….DEDICATED TO DYNAMIC GROWTH, SUSTAINED DEVELOPMENT AND MEANINGFUL ECONOMIC BENEFITS FOR THE GROUP AND ITS PARTNERS

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3

SHAHZAD GROUP OF COMPANIES

Flash Security Services (Pvt.) Limited Global Mining Company (Pvt.) Limited

GROUP ACTIVITIES

4 • With the Group’s

sound financial position, its

companies are in business

independently, as well as in

collaboration with foreign

partners, since 1980

The Shahzad Group, comprises nine (7)

companies.

• The Group has been instrumental

in bringing a number of

multinational companies to

Pakistan resulting in substantial

profitable investment that

led to remarkable discoveries of Oil &

Gas

The Group is pursuing a policy of forging strategic alliances with reputable

foreign companies

• Activities cover a wide spectrum, including oil &

gas exploration & production both onshore

and offshore; power generation and

transmission; mineral exploration &

development including gold, copper, coal and

other minerals; oil & gas field services, supply of oil

& gas equipment and materials, process

equipment; information technology; security; telecommunication;

production of documents and trading As a local partner, Shahzad Group is

providing support to foreign companies in

Pakistan

RECOGNITION OF SERVICES

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The Group’s founder Chairman and Chief Executive Mr. Zaheeruddin has been bestowed a prestigious civil award, Tamgha-e-Imtiaz by the President of Pakistan, in recognition of his outstanding services to the Oil, Gas and Power

Sectors.

PAKISTAN’S UPSTREAM OIL & GAS SECTOR

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PAKISTAN'S ENERGY OUTLOOK

2010 – 2011

64.522 mtoe = 1,290,440 boed

7

0

20

40

60

80

100

120

2007-

08

2008-

09

2009-

10

2010-

11

2011-

12

2012-

13

2013-

14

2015-

15

2015-

16

2016-

17

2017-

18

2018-

19

2019-

20

2020-

21

2021-

22

Millio

n T

OE

s

Local Supply Total Oil & Gas Source: Pakistan Energy Outlook

Import bill $ 50 Billion Imports

Need to invest NOW

Ever increasing Supply Demand Gap Pakistan’s Current Energy Mix

Gas

47.70%

Coal

6.70%Hydro

Electricity

11.80%

Nuclear

1.30%

Indigenuos

Oil

5.00%

Imported Oil

27.00%

LPG

0.50%

PAKISTAN PETROLEUM SECTOR 8

Policy, Rules & Reforms

• Pakistan leads South Asia in petroleum reforms

• Forward looking & dynamic policies to promote private investment

• The petroleum sector is competitive, efficiently run, profitable and has a ready oil & gas market

• Pakistan has a hungry market for oil & gas

• Pakistan’s geology has proven and excellent prospects to discover new oil & gas reserves

Present Situation

• Energy needs are met by local production and imports

• Gas contribution in the energy mix is around 50 %

• Annual energy growth is around 5.25%

• Daily oil production is 70,981 Barrels

• Daily gas production is 4.2 BCF

• Daily oil import is around one third of a million barrel

• Pakistan has a model energy mix from environmental point of view

PAKISTAN PETROLEUM SECTOR… 9

Dynamic Policies offering

competitive financial and

regulatory packages

Excellent prospects to

discover additional Oil & Gas reserves

Country wide gas

infrastructure and ready market for

new discoveries

Excellent success

ratio of 1 to 3.3

Sedimentary basins are

under explored

(two wells / 1000 Km²)

Petroleum Concession Map of Pakistan – September, 2012

Pakistan Energy Infrastructure Map – 2012

Policies & Rules

Policies & Rules/Concessions Map.pdf




Policies & Rules/Energy Map 2011.pdf




PAKISTAN PETROLEUM SECTOR AT A GLANCE

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Exploratory Wells

• 810 (First well in 1866)

Development Wells

• 1112

Sedimentary Area

• 827,268 km²

Area under Exploration

•274,963 km² (33% of sedimentary area)

Exploratory Drilling Density

•very low compared to the world average

•2 wells / 1000 km²

Exploration Licenses

•132

Leases

• 133

Discoveries: 241

• Oil 59

• Gas/Condensate 193

Operators

• Seventeen Foreign and Eleven Local Companies

COMPANIES ACTIVE IN PAKISTAN.doc

COMPANIES ACTIVE IN PAKISTAN.doc

CHAIRMAN & BOARD OF DIRECTORS

Mr. Zaheeruddin Chairman & Chief Executive

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Mr. Zafar Iqbal Mr. Moeenuddin Mr. Shahzad Zaheer Director Director Director

SENIOR MANAGEMENT

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Dr. Gulfaraz Ahmed Mr. Tariq Fatimi Mr. Munir Ahmed Mr. Shahid Ahmad Chief Operating Officer Advisor International Affairs Advisor Technical Advisor Concession & Corporate

Affairs and Head of Exploration

Mr. Shamim A. Bhatti Dr. Mahmood-Ul-Hassan Edwin G Bowles Mr. Khalid Rahim SGM Operations SGM Exploration SGM (London Office) GM Production & Planning

SENIOR MANAGEMENT

Mr.Shahid-Ul-Khairi Mr. Azam Malik Mr. M. Maroof Mr. Amir Hameed GM Exploration GM Exploration GM Geophysics GM Taxation

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Brig. (R) M Saleem Mr. Khawaja Manzoor Mr. Mohammad Jamil Air Cdre (R) M.Yousaf Javed Lt Col (R) Azhar Iqbal GM Co-ordination GM Procurement GM Drilling DGM Finance Manager HR and Admin

TECHNICAL TEAM

Mr. Muhammad Yousuf Mr. Muzaffar Ali Khan Mr. Naveed Akram Mr. Haider Ali Shah Manager Prospect Generation Manager Production Consultant Manager Exploration

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Chaudhry Nazir Ahmed Mr. Amjad Waheed Qureshi Miss Farah Shafique Faisal Sheikh Manager Geophysics Manager Geology Sr. Geophysicist Sr. Geophysicist

FINANCE & COMMERCIAL TEAM

Muhammad Talha Waheed Mr. Kamran Shuja Mr. Adeeb Ali Mirza

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Mr. Assad Saeed Mr. Ubaid Rehmat

FINANCE & COMMERCIAL TEAM

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Mr. Fahad Ali Chaudhry Miss Mehreen Mir Mr. Jawad Ahmed

Mr. Zain Rehman Miss Zainab Nayyar

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GROWTH

Established

• PEL was established in 1994, by Mr. Zaheeruddin, who is the founding Chairman and Chief Executive

Growth

• In less than 18 years, PEL has grown into a highly reputable and successful E&P company

• It has the largest exploration acreage among indigenous private sector companies and is operating within the country and abroad

• PEL has the distinction of being the first private petroleum company of Pakistan going abroad for exploration and development of oil & gas in the Kingdom of Morocco, as an Operator

Present Status

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Currently operates nine onshore and one offshore exploration license, five D&P/Mining leases and one non-operated block in Pakistan

Operating three onshore permits in the Kingdom of Morocco, as one of the pioneer Pakistani company to enter the region, in partnership with ONHYM (the Moroccan

National Petroleum Company)

Presently producing natural gas from four gas fields

Recently production has commenced from Koonj gas discovery in Sukkur Block operated by Mari Gas Company. PEL has 41.2% working interest in this Block

The company along with its joint-venture partners has invested over US$ 200 Million in the past and plans to invest over US $ 300 Million on exploration and

production during the next two years

GROWTH…

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The range and diversity of Company’s reputable Joint Venture Partners reflects their confidence in the ability and competence in PEL as an Operator on their behalf

JOINT VENTURE PARTNERS

Oil & Gas Development Company Limited Government Holdings Private Limited, Pakistan

Pakistan Petroleum Limited, Pakistan

Mari Gas Company Limited, Pakistan

Oil & Gas Investments, Pakistan

Pyramid Energy International Incorporated, BVI

Frontier Holdings Limited, Canada

Gulf Petroleum Exploration International, Kuwait SHERRITT International Oil & Gas Limited, Canada

SPUD Energy Private Limited, Australia BP Exploration (Alpha) limited

Office National des Hydrocarbures et des Mines, Morocco

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MISSION & VISION

To effectively participate in petroleum exploration and production by spreading the risk and sharing the reward and enhancing knowledge base through alliances and joint ventures with key E&P companies nationally and internationally

To develop a sound professional base with cutting edge technology and knowledge to emerge as a global E&P player

To maximize returns to all the joint venture partners and contribute to economy of the country

To protect and preserve environment in all its operations

To enhance reserve base and production level through diligent exploration, acquisition and rapid development of available resources

To look for joint ventures/mergers/acquisitions and strategic alliances/networking with other E&P companies

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EXPLORATION & PRODUCTION PORTFOLIO PAKISTAN

EXPLORATION &PRODUCTION PORTFOLIO

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Exploration Licences (Onshore)

Exploration Licences (Offshore)

Exploration Permits Morocco (Onshore)

Development and Production / Mining Leases

• Mirpur Mathelo Salam

• New Larkana Badin IV North

• Badin IV South Jhangara

• Mirpur Khas West Sanghar East

• Kaloi Hamza

• Sukkur(Non-Operated)

• Offshore Indus – J

• Haha-1

• Haha-2

• Haha-3

• Hasan D&PL Sadiq D&PL

• Khanpur D&PL Kandra D&PL

• Badar ML

EXPLORATION PORTFOLIO (PAKISTAN)

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Exploration Licences in Pakistan

WIOs Area (km²)

Mirpur Mathelo (2769-9) PEL (Operator) 35 %

FHL 35 %, GPX 25%, GHPL 5 % (Carried) 1,030.68

Salam (2769-13) PEL (Operator) 37.5%, FHL 37.5%, GPX 25% 200.22

New Larkana (2768-10) PEL 100 % 2,425.96

Badin IV North ( 2468-6) PEL (Operator) 47.5% , FHL 27.5%, GPX 25% 1,246.03

Badin IV South (2468-5) PEL (Operator) 47.5%, FHL 27.5%, GPX 25% 1,265.33

Offshore Indus-J (2266-4) PEL (Operator) 67%, BP 33% (under assignment to PEL ) 2,436.30

Jhangara (2567-5) PEL (Operator) 40%, OGIL 60% 357.19

Mirpur Khas West (2568-16) PEL 100 % 199.26

Sanghar East (2669-5) PEL 100 % 2,493.13

Kaloi (2468-8) PEL 100 % 2,485.14

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MIRPUR MATHELO BLOCK

Middle Indus basin Area: 1030.68 km2 Location: Sukkur and Ghotki Districts, Sindh Province Working Interest: PEL 35% (Operator), FHL 35%, GPX 25%, GHPL (carried) 5% Play types: Structural/stratigraphic in Sui Main Limestone (Eocene), Lower Goru (K) Hydrocarbon play: Gas/condensate Prospectivity Zone: III Surrounding oil & gas fields: Mari(8.2 TCF), Qadirpur(5.5 TCF), Rehmat (114 BCF) and Badar(100 BCF) Reserves exposure: Over 2 TCF

Work commitment: 50 & 150 lkm 2D seismic and 1 exploratory well

Work completed: Seismic acquired: 253 lkm 2D Seismic purchased: 2060 lkm 2D Seismic processed/reprocessed: 1716 lkm 2D Well data purchased: 2 wells Leads/prospects mapped: 5 Exploratory wells drilled: 1 Reservoir evaluation through seismic inversion interpretation Remaining Work Commitment: 150 line km 2D seismic

Work in progress: Stratigraphic play interpretation Structural/stratigraphic/reservoir play modeling G & G in progress

Mari 8.2 TCF

Qadirpur 5.5 TCF

Badar 100 BCF Rehmat

114 BCF

Miano 537 BCF

Kandra 2.86TCF

175 TCF

Haseeb 200 BCF

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SALAM BLOCK

Middle Indus Basin Area: 200.22 km2 Location: Jacobabad and Ghotki Districts, Sindh Province Working Interest: PEL 37.5 % (Operator), FHL 37.5 %, GPX 25 % Play types: Structural in Sui Main Limestone (Eocene) Hydrocarbon play: Gas Prospectivity Zone: III Surrounding oil & gas fields: Qadirpur (5.5 TCF), Kandhkot (1.6 TCF) and Badar (100 BCF) Reserves exposure: 400 BCF

Work Commitment: 30 lkm 2D seismic and 1 exploratory well

Work completed: Seismic acquired: 134 lkm 2D Seismic data purchased: 520 lkm 2D Seismic data processed/reprocessed: 654 lkm 2D Well data purchased: 3 Leads/prospects mapped: 2 Reservoir evaluation through seismic inversion interpretation

Work in progress: In house G & G studies Structural/stratigraphic/reservoir play modeling Preparations to drill an exploratory well

Mari 8.2 TCF

Qadirpur 5.5 TCF

Badar 100 BCF

Rehmat 114 BCF

Miano 537 BCF

Kandra 2.86 TCF

Khandkot 1.6 TCF

175 TCF

Haseeb 200 BCF

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BADIN- IV NORTH BLOCK

Lower Indus Basin Area: 1246.03 km2 Location: Hyderabad and Thatta districts, Sindh province Working Interest: PEL 47.5 % (Operator), FHL 27.5 %, GPX 25 % Play Types: Tilted fault blocks, structural/stratigraphic in Lower Goru, Sembar sands (Cretaceous) and Chiltan carbonates (Jurassic) Hydrocarbon play: Oil, Gas & Condensate Prospectivity Zone: III Surrounding oil & gas fields: Oil and gas fields operated by UEPL (formerly UTP/BP) surrounding the Badin IV North Block have already produced over 185 MMBO and 1.5TCF gas Reserves Exposure: 25 MMBO & 200 BCF

Work commitment: 150 lkm 2D seismic & 3 exploratory wells

Work completed Seismic acquired: 300 lkm 2D seismic Seismic data purchased: 4493 lkm 2D & 993 km2 3D Seismic data processed/reprocessed: 1460 lkm 2D Well data purchased: 41 Leads/prospects mapped: 14 Exploratory wells drilled: 2

Work in progress: In-house G & G studies Vintage seismic interpretation to delineate stratigraphic traps Preparations to drill an exploratory well

SINDH

KARACHI

Badin IV

North

Badin

IV

South

ML and D & P Leases

(Oil & Gas Fields)

BADIN – IV SOUTH BLOCK 27

Lower Indus Basin Area: 12655.33 km2 Location: Thatta and Badin Districts, Sindh Province Working Interest: PEL 47.5 %(Operator), FHL 27.5 %, GPX 25 % Play Types: Tilted fault blocks, structural/stratigraphic in Lower Goru, Sembar sands (Cretaceous) and Chiltan carbonates (Jurassic) Hydrocarbon play: Oil, Gas & Condensate Prospectivity Zone: III Surrounding oil & gas fields: Oil and gas fields operated by UEPL (formerly UTP/BP) surrounding the Badin IV South Block have already produced over 185 MMBO and 1.5TCF gas Reserves Exposure: 30 MMBO & 700 BCF

Work commitment: 100 lkm 2D seismic & 4 exploratory wells

Work completed Seismic acquired: 483 lkm 2D seismic Seismic data purchased: 2673 lkm 2D & 626 km2 3D Seismic data processed/reprocessed: 2322 lkm 2D Well data purchased: 29 Leads/prospects mapped: 10

Work in progress: In-house G & G studies Vintage seismic interpretation to delineate stratigraphic traps Preparing to drill exploratory wells

SINDH

KARACHI

Badin IV

North

Badin IV

South

ML and D & P Leases (Oil & Gas Fields)

JHANGARA BLOCK 28

Lower Indus Basin Area: 357.19 km2 Location: Dadu District, Sindh Province Working Interest: PEL 40% (Operator),OGIL 60% Play types: Structural & stratigraphic in Cretaceous sands Hydrocarbon play: Gas/ condensate Prospectivity Zone: III Surrounding oil & gas fields: Zamzama (2.32 TCF + 11.68 MMBC) & Bhit (1.6 TCF) producing from Pab and Badhra (110 BCF) producing from Mughal Kot Reserves Exposure: 350 BCF

Work commitment: 200 lkm 2D seismic

Work completed: Seismic data purchased: 253 lkm 2D Prospects mapped: 2 Exploratory wells drilled: 1 Structural modeling through Beicip Franlab Geological field work mapping and outcrop sampling Structural and reservoir evaluation study Petrophysical analysis of Pab and Mughal Kot intervals

Work in progress: In-house G&G studies 2D Sesimic and finalize a drillable prospect Structural/stratigraphic/reservoir play modeling Preparations in hand to acquire 2D seismic before drilling an exploratory well

Zamzama 2.32 TCF & 11.68

MMBC

Badhra 110 BCF

Bhit 1.6 TCF

Punjab

UEPL (formally

UTP/BP),

OGDCL & PPL

operated fields

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KALOI BLOCK

Lower Indus Basin Area: 2485.14 km2

Location: Badin and Mithi Districts, Sindh Province Working interest: PEL (Operator)100% Play types: Tilted fault blocks & stratigraphic in Lower Goru and Sembar sands (K) and Chiltan carbonates (J) Hydrocarbon play: Oil, gas/condensate Prospectivity Zone: III Surrounding oil & gas fields: Oil and gas fields operated by UEPL (formerly UTP/BP) located towards

west of Kaloi in the Badin Blocks that have already produced over 185 MMBO and 1.5TCF gas

Reserves exposure: 15 MMBO & 350 BCF

Work commitment: 300 lkm 2D seismic and 2 exploratory wells

Work completed: 2D seismic purchased: 506 lkm 2D Leads/prospects mapped: 4

Work in progress Vintage data interpretation at Lower Goru Basal sand Structural/stratigraphic/ reservoir play modeling Preparing to acquire 2D seismic

4 leads/ prospects in Lower. Goru

UEP

L (f

orm

ally

U

TP/B

P)

op

era

ted

fi

eld

s

MIRPUR KHAS WEST BLOCK

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Lower Indus Basin Area: 199.26 km2 Location: Hyderabad & Dadu Districts, Sindh Province Working Interest: PEL (Operator) 100 % Play Types: Tilted fault blocks, structural/stratigraphic in Lower Goru sands (Cretaceous) and Chiltan carbonates (Jurassic) Hydrocarbon play: Gas Prospectivity Zone: III Surrounding oil & gas fields: OGDCL, PPL and UEPL (formerly UTP/BP) oil, gas/condensate fields located north of Badin Blocks that have already produced 83 MMBO and 337 BCF gas Reserve Exposure: 200BCF

Work commitment: 250 lkm 2D seismic and 3 exploratory wells

Work completed: Seismic acquired: 176 lkm 2D Seismic purchased: 305 lkm 2D Seismic processed/reprocessed: 276 lkm 2D Well data purchased: 8 Leads/prospects mapped: 3

Work in progress In-house G&G studies Sequence stratigraphy evaluation of L. Goru sands Structural/stratigraphic/reservoir play modeling Preparations to drill an exploratory well

Punjab

UEP

L (f

orm

ally

U

TP/B

P),

O

GD

CL

& P

PL

op

era

ted

fie

lds

UEP

L (f

orm

ally

U

TP/B

P)

op

erat

ed

fi

eld

s

SANGHAR EAST BLOCK 31

Lower Indus Basin Area: 2493.13 km2 Location: Sanghar and Khairpur Districts Sindh Province Working interest: PEL (Operator) 100 % Play types: Structural/stratigraphic in Lower Goru, Sembar (Cretaceous) sands & Jurassic carbonates Hydrocarbon play: Oil/gas Prospectivity Zone: III Surrounding oil & gas fields: SGL Gas Field, Rajasthan, India (Focus Energy) and Lala Jamali, Sindh (OGDCL) Reserves exposure: 200 BCF

Work Commitment: 200 lkm 2D seismic and 4 exploratory wells

Work Completed: Seismic purchased: 685 lkm 2D Seismic reprocessed: 36 lkm 2D Well Data Purchased: 2 wells Leads/prospects mapped: 2

Work in Progress: Vintage seismic interpretation Structural/stratigraphic/reservoir play modeling Preparing to acquire 200 lkm 2D seismic

Punjab

SGL Gas Field 3100m in L. Goru, flowed 21 MMSCFD, about 950

btu/scf gas

Lala Jamali Gas Field (OGDCL), in L. Goru, flowed 1130 btu/scf

gas

UEP

L (f

orm

ally

U

TP/B

P),

OG

DC

L &

PP

L o

pe

rate

d

fie

lds

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NEW LARKANA BLOCK

Lower Indus Basin Area: 2426 km2 Location: Larkana & Shikarpur Districts, Sindh Province Working interest: PEL (Operator)100 % Play types: Structural in Sui Main Limestone (Eocene), Dunghan carbonates (Paleocene) and stratigraphic in Pab Sandstone (Cretaceous) Hydrocarbon play: Gas/condensate Prospectivity Zone: III Surrounding oil & gas fields: Mehar (434 BCF), Mazarani (183 BCF), Haseeb (200 BCF), Kandra (2.86 TCF), Block 22 (175 BCF) Reserves exposure: 200 BCF

Work commitment: 100 lkm 2D seismic and 3 exploratory wells Work completed: Seismic data purchased: 556 lkm 2D Well data purchased: 1 Leads/prospects mapped: 2

Work in progress: In-house G & G studies Vintage seismic interpretation Structural/stratigraphic/reservoir play modeling Preparing to acquire 100 lkm 2D seismic before drilling a well

Mehar

434 BCF

Mazarani

183 BCF

Haseeb

200 BCF

Hasan, Khanpur,

Sadiq & Hamza

175 BCF

Kandra

2.86 TCF

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SUKKUR BLOCK (NON-OPERATED)

Middle Indus Basin Area: 2435.4 km2 Location: Sukkur and Ghotki Districts, Sindh Province Working Interest: PEL 41.2%, MGCL (Operator) 58.8% Play types: Structural in Sui Upper & Sui Main Limestones (Eocene) and stratigraphic in Lower Goru sands (Cretaceous) Hydrocarbon play: Gas/condensate Prospectivity Zone: III Surrounding oil & gas fields: Block 22 (175 BCF), Haseeb (200 BCF), Kandra (2.86 TCF), Rehmat (114 BCF) and Badar 100 BCF Reserves exposure: 200 – 300 BCF

Work commitment: Seismic Acquisition & Processing of 100 lkms and 3 exploratory wells

Work completed Seismic acquired: 460 lkm Seismic data purchased: 909 lkm 2D Seismic data processed/reprocessed: 1200 lkm Well data purchased: 5 Leads/prospects mapped: 5 Wells drilled: 3 Discovered Koonj Gas Field, under extended well testing (EWT), present production 2.5 MMSCFD Regional geological study of Central Gas Basin

Work in progress: In-house G & G studies Vintage seismic interpretation Structural/stratigraphic/reservoir play modeling

Haseeb

200 BCF

Kandra

2.86TCF

175

BCF

Mari

8.2 TCF

Qadirpur

5.5 TCF

Badar

100 BCF

Rehmat

114 BCF

Miano

537 BCF

Khandkot

1.6 TCF

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OFFSHORE INDUS – J BLOCK

Offshore Indus Basin Area: 2436.30 km2 Location: 200 km south of Karachi Working Interest: PEL (Operator) 77 %, BP 33% (under assignment to PEL)

Play types: Channel/levee sands/carbonate buildups (Paleogene – Neogene) Hydrocarbon play: Gas/condensate Prospectivity Zone: O Wells in the area: 13 wells (PakCan-1 flowed 3.7 MMSCFD) Reserves exposure: 25 - 30 TCF

Work commitment: 186 Work Units (WU) One WU = 10 lkm 2D or 1 km² 3D seismic

Work completed: Seismic acquired: 936.5 lkm 2D& 550 km² 3D (643.6 WU) Seismic processed to PSDM level: 550 km² 3D cube Leads/prospects mapped: 2 on 3D cube and 3 on 2D data

Work in progress: In-house G & G studies Structural/stratigraphic/reservoir and source play modeling

Channel-sheet sands leads&

prospects

OIL AND GAS POTENTIAL EXPLORATORY BLOCKS (PAKISTAN)

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Gas Exposure Oil Exposure

Reserve Exposure for Offshore J Block is estimated at 25 – 30 TCF and Mirpur Mathelo over 2 TCF

Mirpur Khas West0.20 TCF

Jhangara0.35 TCF

Salam0.40 TCF

New Larkana0.20 TCFBadin IV North

0.20 TCF

Badin IV South0.70 TCF

Sanghar East0.20 TCF

Kaloi0.35 TCF

Badin IV North25 MMBBL

Badin IV South30 MMBBL

Kaloi15 MMBBL

Recoverable reserves from Block-22, Badar and Kandra Fields are estimated to be over 3 TCF of Gas

HYDROCARBON ASSETS (OPERATED FIELDS)

36

37

GAS PRODUCTION SHARE 2010 – 2011

OGDCL21.38%

Dewan0.71%

OMV11.00%

OPII0.33%

MOL7.57%

PEL0.67%

PPL18.86%

POL0.53%

BHP9.73%

BP4.39%

MGCL12.65%

Petronas0.33%

Eni Pakistan11.86%

TULLOW0.01%

GAS PRODUCTION SHARE 2010 – 2011

(PRIVATE SECTOR) 38

PEL35.05%

Dewan37.26%

POL27.69%

HASSAN, SADIQ & KHANPUR D & P LEASES 39

Hasan D & P Lease

Khanpur D & P Lease

Sadiq D & P Lease

Gas Production 8.307 MMSCFD (September, 2012)

40

HASSAN, SADIQ & KHANPUR D & P LEASES…

Mari

8.2 TCF

Qadirpur

5.5 TCF

Rehmat

114 BCF

Miano

537 BCF

Khandkot

1.6 TCF

Badar

100 BCF

Kandra

2.86 TCF

Haseeb

200 BCF

Block – 22 Fields on production since December 2000 Reservoir: Sui Main Limestone (SML) Eocene Cumulative production: 58.35 BCF (as on 31-12-2011)

Number of producing wells: 06 Hasan-4 well to be drilled in 2012

41

HASSAN, SADIQ & KHANPUR D & P LEASES…

• Block-22 was awarded in 1994 • Four discoveries namely Hasan, Sadiq, Khanpur & Hamza have

been made • Three D&P Leases have been granted whereas the Hamza DOC

has been submitted & gas is planned to be supplied for power generation

• Production Facilities consist of Dehydration Unit, Amine sweetening unit, Compressors, API separator, Evaporator and Condensate handling unit.

Upside • Plan to drill an additional well in Hasan Lease to enhance

production • Plan to develop Hamza Discovery

42

BADAR MINING LEASE

BADAR 13.9 MMSCFD

Mari 8.2 TCF

Qadirpur 5.5 TCF

Rehmat 114 BCF

Miano 537 BCF

Kandra 2.86 TCF

Khandkot 1.6 TCF

Hassan, Khanpur, Sadiq & Hamza 175

BCF

Haseeb 200 BCF

Badar Mining Lease was granted in 2002, GSA was signed in August, 2004 and the production from the field commenced from SML reservoir in April, 2006. Current production rate is 13.9 MMSCFD. Cumulative production from the date of first gas delivery is 31.18 BCF (as on 31-12-2011). The field is surrounded by major gas fields and has an upside potential of stratigraphic and structural plays Future plan is to drill Badar-2 in development well in 2012 to enhance production.

43

KANDRA D&PL

Mari 8.2 TCF

Qadirpur 5.5 TCF

Rehmat 114 BCF

Miano 537 BCF

Khandkot 1.6 TCF

Hassan, Khanpur, Sadiq & Hamza 175

BCF

Badar 100 BCF

Haseeb 200 BCF

Kandra 2.86TCF

Lease Granted January 2006

Location/Area Khairpur and Sukkur Districts/286 Km²

Objectives Primary –SML (Eocene) Secondary – Lower Goru Sands / Chiltan Limestone

Recoverable Reserves 2.86 TCF (SML)

Wells Drilled 3 shallow, 1 deep

Power Project GOP approved 120 MW power plant using Kandra Gas as fuel

Future Plan Well Locations finalized. Preparation in hand to develop the field

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THE FIELD DEVELOPMENT AND POWER PROJECT IS ESTIMATED TO COST ABOUT

US $ 95 MILLION AND US $ 165 MILLION RESPECTIVELY

KANDRA FIELD DEVELOPMENT & POWER PROJECT

FIELD DEVELOPMENT

• The low heating value Kandra gas (150 BTU/SCF) will be used as fuel for power generation after processing and blending with pipeline quality gas

• The field development envisages drilling and completing 12-14 additional wells, surface gathering lines and central processing facility for producing 120 MMSCFD of raw gas

• This gas after processing will yield 40 MMSCFD gas of 330 BTU/SCF heating value

POWER PROJECT

• The processed Kandra gas will be commingled with 10 MMSCFD pipeline quality gas of 900-950 BTU/SCF heating value to yield 50 MMSCFD of 440-450 BTU/SCF heating value

• This gas will be used as fuel for Combined Cycle Power Project of 120 megawatts electricity to be set up by the Kandra Power Company.

45

EXPLORING AFRICA KINGDOM OF MOROCCO

46

HAHA PERMITS MOROCCO

Essaouira Basin Area: 4919 km2 (about 25% of Essaouira Basin) Location: 550 km southwest of Capital Rabat Working interest: PEL75% (operator), ONHYM (carried) 25% Play types: Structural/stratigraphic in Triassic sands, Jurassic sands/carbonates and Paleozoic clastics Hydrocarbon play: Gas, oil and condensate

Surrounding oil & gas fields: Seven oil and gas fields about 60 km to the north with 500 BCF and 50 MMB oil/ condensate in Triassic & Jurassic sands and carbonates. Sidi Rhalem oil field produced 9 MMBBL of oil from Jurassic Carbonates

Resource exposure: 8 TCF and 400MMBBL

Work commitment: 70 km² 3D and 1 well

Work completed: Seismic acquired: 139 km² 3D Seismic data reprocessed: 132 lkm 2D Leads/prospects mapped: 04 Salt induced surface structures delineated , 40-80 km2 each: 10 Petrographic study of Triassic reservoirs Geochemical modeling Gravity magnetic data evaluation

Work in progress: In-house G & G studies Evaluation of salt cored structures Preparing to drill an exploratory well

Atl

anti

c O

cean

Haha Permits

7 oil & gas/ condensate fields Rec.

Reserves 500 BCF and 50 MMBO

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REGULATORY REGIME • Politically stable & progressive

country • Investment friendly fiscal regime • Government carried interest is

limited to 25% in exploration phase

• Royalty 10% on oil and 5% on gas • No surface rental levied • No petroleum duty • No currency control • Tax free import of equipment,

material and consumables • Corporate Tax holiday during ten

years regular production

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IH #

1

IH # 1

DIGITAL TERRAIN

MODEL

GEOLOGICAL

MAP

AREA: 56 km2

Large salt induced

anticlines mapped

indicating several TCF

potential gas resources

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# SURFACE

STRUCTURES EXPOSED STRATA

RESERVOIR TARGETS AREA (km2)

1 Amsittene diapir Jurassic Triassic/Paleozoic 80

2 Ihchech Jurassic Triassic/Paleozoic 56

3 Ihchech south Jurassic Triassic/Paleozoic 70

4 Baulanouar Cretaceous Jurassic/Triassic/Paleozoic 60

5 Agouti Cretaceous Jurassic/Triassic/Paleozoic 30

6 Imakherim Cretaceous Jurassic/Triassic/Paleozoic 15

7 Adar yssi Cretaceous Jurassic/Triassic/Paleozoic 55

8 Assaka Cretaceous Jurassic/Triassic/Paleozoic 15

9 Aziar Cretaceous Jurassic/Triassic/Paleozoic 40

10 Imouzzer Triassic Paleozoic 48

CORPORATE SOCIAL RESPONSIBILITY

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CSR is a key priority for the Company

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Corporate Social Responsibility

Vocational Training Health

Road Infrastructure Disaster Management

Drinking Water

Education

CORPORATE SOCIAL RESPONSIBILITY

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CORPORATE SOCIAL RESPONSIBILITY (Message from the Chairman)

It is my privilege to say that PEL as a responsible corporate entity is committed to enhancing the wellbeing of the underprivileged communities in and around its concessions and lease areas, by providing clean drinking water, education, health facilities, local employment and infrastructure development. Every year millions of dollars are being spent on community welfare programs.

Today I can very proudly say that with our sustained community welfare programs we have helped in ameliorating their difficulties and improving their wellbeing. PEL is committed to continuing these efforts into the future Zaheeruddin Chairman and Chief Executive


CORPORATE SOCIAL RESPONSIBILITY…

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PO

LIC

Y, V

ISIO

N A

ND

A

CH

IEV

EMEN

TS

As per the CSR policy outlined by the Chairman, PEL as a responsible corporate entity is fully aware and committed to its social responsibility towards the local communities in its area of operation

PEL has established a track record of implementing social welfare schemes in its area of operations

PEL made a significant contribution (US$ 29,750) in construction of eight classrooms at HMB Trust’s Institute of Science & Technology, Shikarpur

PEL undertook installation of Electric Water Coolers at various schools, colleges, libraries and parks (US$ 33,688)

Made a major contribution (US$ 456,260) in the establishment of regional Petroleum Technical Training Institute at Khairpur, Sindh


CORPORATE SOCIAL RESPONSIBILITY… (RECENT SOCIAL WORK ACTIVITIES)

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Provision of funds for the establishment of Petroleum Training Institute in Khairpur, Sindh.



55


Provision of uniforms for orphan children at Bait ul Mal Pakistan



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Provision of uniforms for orphan children at Bait ul Mal Pakistan Medical facilities consisting of mobile dispensaries/ambulances

for emergencies



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for emergencies Installation of water coolers for the supply of clean drinking

water



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for emergencies Installation of water coolers for the supply of clean drinking

water Donated a vehicle to a well reputed NGO

FLOOD RELIEF OPERATIONS 59


Unprecedented and devastating floods hit the entire country in the monsoon months of July and August, 2010. People living in the vicinity of Block-22 & Badar fields were seriously affected by these floods. PEL in line with its CSR Policy provided relief to the flood affectees by taking the following actions:

• supplying cooked meals • ration and other necessities like kitchen utensils • boats for rescue works (one wooden boat and one fiber glass motor

boat with 25HP engine) • Organized distribution schemes of emergency food packs and relief

goods (cooked meals and bags (20 kg each) containing flour, rice, sugar, grain seed, cooking oil, milk and tea)

PEL had organized field trips of qualified medical teams through mobile dispensaries for helping the affected people against exposure to water borne and other diseases.

TRAINING POLICY 60


PEL is committed to imparting skills related to oil & gas industry requirements. It has proudly invested over One Million US Dollars during the last four years (i.e. 2008 – 2011) on training and development of government officials and its employees. The main objective of training and development is to help develop key competencies which enable individuals to perform current or future jobs successfully. All training and development programs are geared towards: Strengthening the job skills/knowledge of government officials and its employees Improving operational efficiency and productivity

Key Training Activities of our employees during 2011 were as follows: Oil & Gas Summit, Asia – Malaysia Seminar on Testing Through New Technology arranged by Schlumberger – Islamabad,

Pakistan Procurement & Inventory Management arranged by Skill Development Council Wireline Log Interpretation arranged by OGTI – Islamabad, Pakistan Business Writing Skills arranged by Skill Development Council

STATUTORY PAYMENTS TO THE GOVERNMENT

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PEL has contributed an amount of over US$ 13 million from July, 2003 till January 31, 2012 on account of statutory payments to the Government of Pakistan covering royalty, area rental, marine research, production bonus, signature bonus, training, social welfare, general sales tax, excise duty, with-holding tax and custom duty.

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HEALTH, SAFETY, SECURITY & ENVIRONMENT POLICY

HSSE Policy

Follow and maintain safe systems of work

Provide adequate and proper facilities,

equipment and safety apparel

Provide adequate training, information and instructions on health, safety and

hazards

Ensure protection of

the environment

Regard all accidents as preventable.

Commit towards a safe environmental management

To candidly audit and report all HSSE performances.

Proud to be committed to environment friendly operations As a result of strict adherence to HSSE policy, the time lost on account of accident/injury was zero hours in Block-22 and

Badar operations during last ten years

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FUTURE OUTLOOK…

To exploit knowledge and evolving technology and pursue international opportunities for exploration and acquisition of production assets to become a leading E&P company

To attract serious E&P companies into Joint Ventures Partnerships through farming into its exploration and production assets in Pakistan and overseas, especially Morocco

To aim at an aggressive corporate growth through prudent goals oriented strategies and risk management spreading the risks and sharing the rewards

EXPECTED EXPONENTIAL RISE 64

Growth within Pakistan

Expansion of PEL’s Operations

internationally

Achieving sustainability, and making

PEL a successful

global energy company


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Documents

Pel Revenue