Shiv-Vani Oil & Gas Exploration Services Limited

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Table of Contents

Company Overview Business Overview Key Investment Highlights Financial Snapshot 15 23 3 7

Company Overview

3

Corporate Overview

• A leading private sector onshore Oil & Gas services provider in India with 40 onshore rigs and 10 seismic crews • Incorporated in 1989 and promoted by the Singhee family • Product suite includes onshore E&P services ranging from seismic, deep-drilling, coal bed methane to integrated well services • Strong customer relationships with major Indian national oil companies like Oil and Natural Gas Corp. Ltd. (“ONGC”), Oil India Ltd. (“OIL”) and Petroleum Development Oman (PDO) – Projects spread across over 30 sites in India and Oman / Middle East, providing cost and time advantages • Outstanding order book of $ 671m as of 30 th Sep, 2010 • International partnerships expand capabilities

Express Drilling Systems, USA -(Executing US$200m CBM project via unincorporated JV) KCS, Kazakhstan (Seismic and Transit Zone technology) TNG Group, Russia (JV for specialised seismic jobs)

4

Shiv-Vani Evolution Growth history

• Raised $ 80 m by FCCB in July 2010 • Coupon 5%, YTM 5.74%, Conversion price Rs 516 • US$20m equity investment by Franklin Templeton • Deployed 10 large drilling rigs • Commenced all the eight large Rigs for ONGC USD 354.5 m contract by July 10 • Acquired drilling rig in India with capacity of 3,000 HP • International partnerships with Schlumberger, Baker Hughes • Commenced integrated well services • Obtained US$354.5m 3-year contract from ONGC

2009

• Commenced operations in Oman / Middle East • FCCB offering US$55.0m (converted in 2007) • Entered CBM operations • CVC invested US$25.4m

• Acquired 7 seismic fleets

2005-08

2010-11

• Deployed offshore logistics support vessel • Commenced Natural gas compression operations

1999-04

• Purchased first work over & drilling rig • Diversified into seismic services

1994-98

• IPO in Nov 1993 • Commenced operations with shot-hole drilling services

1990-93

5

Organisational Structure Shiv-Vani Oil & Gas Exploration Services Limited (25 Rigs, 8 Seismic sets)

100% • Oil Blocks Holding Limited (Cyprus) • SV Videsh Limited (Cyprus) 100% 99%

SV Oil & Natural Gas Limited (Mauritius)

1%

Shiv-Vani Oil & Gas Co. LLC (Oman)

• 4 Rigs • 4 Rigs leased to SV India • 2 Seismic sets working for Seismic Solutions in Middle east • Onshore drilling contract with PDO Oman/Shell Group • Commenced since 2005 - 3 Rigs (deployed) • Total Contract Value: US$244m (15 years period) • Evergreen contract with no expiry • Annual turnover – US$18m 100%

Natural Oil & Gas Services Limited (Mauritius)

• 8 Rigs • Rigs leased to SV India 100%

Other Subsidiaries

•

Shiv-Vani Oil Services Limited (India)

•

Shiv-Vani Singapore Pte Limited (Singapore)

51%

TNG Shiv Geo Oil Services Limited (India)

6

Business Overview

7

Established Integrated Oil & Gas Services Provider

Services Seismic Deep Drilling Coal Bed Methane Integrated Well Services Other Services Revenues 1 ($m)

117.4

137.1

19.1

2.3

1.5

% of Total Revenues Description

42% 49% 7% 1% 1% • • • • Large fleet of 10 sets of seismic equipments Shot-hole rigs (truck-mounted & portable): 350 Well-equipped to carry out operations in varied terrains ranging from mountains to dense forests Order book of ~US$35m 1 • • • Large fleet of 40 deep drilling and work over rigs Fleet includes advanced drilling rigs with capacity to drill wells up-to a maximum depth of 8,000 meters, including one 3,000HP drilling rig Robust order book of ~US$520m 1 • • • • Provides multilateral inseam, horizontal directional drilling, which results in increase in flow rates 8 sets of modern directional drilling equipment Executing US$ 200m contract for development of 3 CBM blocks for ONGC on turn key basis in technical collaboration with Express Drilling LLC, USA Strong order book of US$89m 1 • • • One stop solution provider Services include well logging, cementing, mud engineering, directional drilling, well testing etc Technology collaboration with leading international players Improved EBITDA margins in integrated contracts • • • Other E&P services include operation of 4 offshore logistics support vessels, natural gas compression, design and building of gas gathering stations, laying of pipelines etc.

Marginal field service contract at Charaideo, Assam with ONGC Strong order book of US$27m 1 (1) As of Sep 30 th , 2010 US$ INR used for all translations: 45.14 as of March 31 st , 2010 & 44.92 as on 30 th Sep 2010 8

Offering high-tech seismic services

Seismic services

• • • • • • Large fleet of 10 sets of seismic equipments Shot-hole rigs (truck-mounted & portable): 350 Number of channels: 55,000 Well-equipped to carry out operations in varied terrains ranging from mountains to dense forests Dedicated team of geophysicists, surveyors and engineers Order book of ~US$35m (as of 30 th Sep 2010)

Sourcing from world class vendors

• • • • • • • • • • Shot-hole drilling rigs – Jacro (USA) Seismograph – Sercel, Aram (France) Geophones / Hydrophones – Geosensor (Canada), Geospace (USA) DGPS – Leica (Switzerland) Sorting system – Pelton (USA) Total Station – Trimble (USA), Leica (Switzerland) Testing Equipment - Sercel, Aram (France) Airgun – BOLT (USA) Uphole unit – Seistronix (USA) Cables – Sercel, Aram (France) 9

Amongst the largest onshore advanced deep drilling services provider in India

Extensive range of 40 rigs Deep drilling services

• • • • • Large fleet of 40 deep drilling and work over rigs Fleet includes advanced drilling rigs with capacity to drill wells up-to a maximum depth of 8,000 meters, including one 3,000 HP drilling rig Long term partnership with original equipment manufacturers for equipment maintenance Large inventory of stores and spares; 3 workshops spread across India Robust order book of ~US$520m (as of 30 th Sep 2010) Note: Split of fleet shown in terms of capacity

Sourcing from world class vendors

• Basic Rig & structure – – Top Drive System – NOV (USA) – – – Rotary drive system & Shaffer (USA) – Kelly (USA) Blow Out Preventor (BOP) – Cameron, Hydrill Mud System – Derrick (Europe) 10

Demonstrated successful diversification into CBM services

•

Coal bed methane

India has 247 Billions tonnes of Coal Reserves – 4 th largest in the world.

• The CBM resource is estimated at 50 TCF • Total Sedimentary area for CBM Exploration in India is 26,000 Sq Km • Out of this exploration has been initiated in about 60% area by way of CBM rounds • Target CBM production 7.4 MMSCMD by 2013-14 from the current 0.15 MMSCMD.

• Shiv Vani is pioneer and leading provider of integrated CBM development services in India • Ability to provide multilateral inseam, horizontal directional drilling – results in significant increase in flow rates and optimises CBM production • Advanced simulators for production and recovery of methane from coal seam reservoirs

Growth potential from largely unexplored blocks

PSUs PSU - Private JVs Private JVs Other private `

Total Round I* Round II

4 5

Round III

-

Round IV

Nil 3 6 Nil 8 4

8

3

8

1

10

Nil

8

*Including 3 awarded on nomination/FIPB route Source: Directorate General of Hydrocarbons website •

Executing US$200m contract for development of 3 CBM blocks for ONGC on turn key basis

•

In technical collaboration with Express Drilling LLC, USA

•

Strong order book of US$89m (as of 30 th Sep 2010)

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Presence across domains enables Shiv-Vani to offer end-to-end integrated services

Integrated well services

• • • • Evolving as a one stop solution provider – Services include Well logging, cementing, mud engineering, directional drilling, well testing etc Technology collaboration international players with leading Improved contracts – PSU ’s EBITDA increasingly selectively margins services companies

Schlumberger

prefer consolidated contract to a vendor, who in turn sub-contract to like in to integrated global allot a oilfield

Halliburton,

– Such contracts result in a higher EBITDA margins due to better cost control and sub contracting Developing technical capabilities to be able to provide integrating well services instead of sub contracting to global oilfield services companies, thus providing a further upside to EBITDA margins

Other businesses

• – – – – Other E&P services include – operation of 4 offshore logistics support vessels natural gas compression design and building of gas gathering stations laying of pipelines etc Additional opportunities to be explored wherever there are synergies of utilizing existing equipment 12

Stable business terms as well as asset base Stable contract terms

• • • • • • Long term contracts (majority three years) Limited credit risk as significant business with PSUs Fixed terms contracts – no negotiations including revision in pricing Majority on ‘day-rate basis’ Contract revenues de-linked from prospecting results or oil price fluctuations Evergreen contract with PD Oman

Stable asset / skill base

• • • • • • Asset acquisition against confirmed contracts Own fleet of logistics support vehicles and workshop reduces downtime Long term maintenance contracts with OEMs Large inventory of stores and spares Geographical spread provides flexibility to offer location choice to employees Advanced technical equipment and expertise that helps in retention of skilled talent 13

Expanding operations: pan India and internationally

PDO, Oman, Drilling & Work over evergreen contracts ONGC, Shot Hole Drilling & Seismic Job Services – Jwalamukhi, Manali and other areas in HP ONGC, Shot Hole Drilling & Seismic Job Services - Satna, Batul, Shadol & other parts of MP ONGC, 3D Seismic Data Acquisition – Sector-IX, Mehsana/Patan ONGC, 3 Sets. MWD, SDMM and Drilling Jar along with Directional Drillers at Ankleshwar ONGC, Shot Hole Drilling & Seismic Job Services - Solan, HP ONGC, Shot Hole Drilling & Seismic Job Services - Katni, MP) ONGC, Shot Hole Drilling & Seismic Job Services - Damoh & Zabera, MP ONGC, 2D Seismic Data Acquisition – Rajouri to Punch, Himalayan Foothills of J&K OIL, 3 Nos. 2000 HP & 1 No. 1500 HP Drilling Rigs & 2 Nos. Work over Rigs at/near Duliajan ONGC, 2D Seismic Data Acquisition, using Vibroseis – Duliajan ONGC, 1 No. 2000 HP

Integrated Drilling

Rig at Itarsi, MP (Frontier Basin)

ONGC Charaideo Marginal Field

ONGC, 2D Seismic Data Acquisition – Vindhyan Basin, MP

1 No. E&P Blocks – NELP-VI, Amgudi OIL + Shiv

ONGC, 3D ONGC, 3D Seismic Data Acquisition – ONGC, 2D Seismic Data Acquisition – Sector-I, Sibsagar Pasighat AP Seismic Data Acquisition – Silchar ONGC, 2D Seismic Data Acquisition Manabum, AP – ONGC, Shot Hole Drilling & Seismic Job Services - Cachar ONGC, Shot Hole Drilling & Seismic Job Services Tura, Meghalaya ONGC, 3D Seismic Data Acquisition – Dumapur ONGC, 3 Nos. 2000 HP & 1 No. 3000 HP

Integrated Drilling

Rigs at Sibsagar OIL, 3D Seismic Data Acquisition – Sadiya, Jonai & Moran ONGC, 3D & 2D Seismic Data Acquisition – Sector-III & IV, Tripura & Sector-A, Sector-B ONGC, 2 Nos. 2000 HP

Integrated Drilling

Rigs & 2 No. 175 Ton Work over Rig at Ankleshwar ONGC, Reservoir Data Acquisition for two years at Ankleshwar, Bharuch in Gujarat Work over Drilling Integrated Services for CBM Oil & Gas Exploration 2D/3D Seismic Data Acquisition Crew Shot Hole Reservoir Data Acquisition ONGC, 3 Nos. Crew Boats – Mumbai Offshore ONGC, Shot Hole Drilling & Seismic Job Services Pondicherry, Tamil Nadu ONGC, 2 Nos. 2000 HP

Integrated Drilling

Rigs & 1 Nos. 175 Ton Work over Rigs at Rajahmundry ONGC, 2D Seismic Data Acquisition – KG Basin, Across river ONGC, 2 Nos. 2000 HP

Integrated Drilling

Rigs at Agartala ONGC, 1 No. 5o Ton Work over Rig at Bokaro

ONGC, Integrated CBM Operation at Bokaro One No. E&P Block NELP-VI, OIL + Shiv+Suntera

Note: Above illustration covers current and recently completed projects 14

Key Investment Highlights

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Key Investment Highlights

Established Management Team with Deep Domain Expertise

• Expert senior management with substantial industry experience, sole focus on oil & gas sector since the last 15 years • High quality investors including Templeton and CVC support organic and inorganic growth strategy

6 Attractive Financial Profile

• Track record of consistent revenue with CAGR of 59% from FY Dec 06 to FY Mar-10 • Strong EBITDA margins with average of c.41% over 3 years • Current book stands at ~US$671mn, which is ~4.0* FY10 revenue and ~2.5x FY10 revenue

5 Multiple Growth Opportunities

• Broaden end to end services from drilling and work over to further up value chain like casing, fabrication etc • Expand geographically in Middle East and North Africa ( “MENA”) region

4 3 1 2 Strong Macro Drivers

• Total Oil&Gas outlay expected to increase from US$21.8bn in 2002-07 to US$48.2bn in 2007-12 • PSU E&P outlay expected to increase from US$12.5bn in 2002-07 to US$31.8bn in 2007-12 • India’s natural gas demand is expected to increase by ~42% to ~279mmscmd in the next three years

Established Integrated Oil & Gas Services Provider

• One-stop service provider for E&P operators • Owns young fleet of 40 onshore rigs and 10 seismic crews • Long term fixed terms contract • Conservative capex strategy

Blue Chip Customer Portfolio

• Strong relationship with leading government controlled companies including ONGC and OIL • High entry barriers to tap PSU segment • Evergreen contract with Petro. Dev. Oman ( Shell Int.) well positioned to tap international opportunities 16

Strong Macro Drivers : India

• • • • • • •

Demand Supply Curve of Oil of 2011-25 suggests a gap of 315 MMTPA against a demand of 376 MMTPA Exploration blocks awarded to PSUs under NELP I-VII Demand Supply Curve of Gas 2011-25 suggests a gap of 221 MMSCMD against a demand of 391 MMSCMD PSUs awarded147 blocks out of total no. of 239 blocks between 2000-2009 Total Oil&Gas outlay to increase from US$21.8bn in 2002-07 to US$48.2bn in 2007-12 PSU E&P outlay to increase from US$12.5bn in 2002-07 to US$31.8bn

in 2007-12 Implementation of New Exploration Licensing Policy ( “NELP”) by the Government has induced acceleration in the exploration effort Less controls investments on Petroleum product pricing to encourage Emphasis on CBM - Coal Gas Methane, Gas Hydrates, UCG Underground Coal Gasification , Shale Gas etc.

–

Source: Directorate General of Hydrocarbons website (1) Total blocks include blocks that were subsequently relinquished (2) PSUs include consortiums comprising both PSUs and private sector companies

Seismic surveys 2D (km) Seismic surveys 3D (sq. km) Exploratory drilling (metreage km) Exploratory wells (No.) Development wells (No.) PSU E & P Outlay (US$m)

2002-07 2007-12 Source: Report of working group on Petroleum & Natural Gas for XI Plan; XI Plan report for Energy sector 17

Indian Oil & Gas Industry Scenario

•

Total Sedimentary basins in India are 3.14 Mill Sq Km.

•

Onland & Shallow water (upto200 m): 1.79 M SQKM

•

Deep water : 1.35 M SQKM

•

Explored 22%

•

Exploration Initiated 44%

•

Partly Explored / Unexplored 34%

•

India is Vth largest primary energy consumer with a CAGR of 4.5%

•

However per capita Energy consumption is only 0.51 TOE : 28% of global Average

•

Huge gap in Oil and Gas Demand Curve of 2011-25 prompting nation to strive for exploration INDIA : Energy Source WORLD : Energy Source Rising Domestic Energy Consumption CAGR 6.4% mmtoe

500 400 300 200 100 0 1997 2000 2004 2006 2008 2009 Coal 52% Crude Oil 32% NaturalGas 10% Hydro 5% Nuclear 1% Coal 29% Crude Oil 34% NaturalGas 24% Hydro 5% Nuclear 6%

India’s Oil and Gas Energy Source is 42% against World’s average of 58%

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• • •

Established Integrated Oil & Gas Services Provider

One of the few companies in India to provide integrated oil & gas services Owned equipment – with average age of c.1 year and estimated remaining life of c.20 years Growing integrated oil services business expected to yield higher EBITDA margins – Increasingly sub-contracting to global oilfield services companies including Halliburton, Schlumberger • Conservative capex strategy – Typically the company procures rigs post successfully winning a contract from its customers • Long term contracts (majority 3 years) with usually no negotiations including revisions in pricing

Business Segment wise Historical Order book 277

300 Seismic Onshore Drilling Directional Drilling Well Logging Mud Logging Cementation

Shiv Vani

      CBM Services  Source: Respective company websites 300

JE 1

      

DR 1

      

Alphageo

      

Asian Oilfields



Business Segment wise Historical Revenue 277

      19 19 200 100

146

27 50 69

171

23 63 85 141 117 200 100

146

27 50 69

171

23 63 85 141 117 0 0 2008 2009 2010 2008 2009 2010 Seismic & Shot Hole Drilling & Integrated Services CBM Projects Seismic & Shot Hole Drilling & Integrated Services CBM Projects (1) JE – John Energy, DR – Dewanchand Ramsaran US$ INR used for 2008 – 39.41, 2009 – 50.95, 2010 – 45.14

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Blue Chip Customer Portfolio

• • • Low counterparty risk due to strong relationship with ONGC and OIL Obtained US$354.5m contract from ONGC in 2009 Evergreen contract with PD Oman, well positioned to tap international opportunities

Key Customers (US$ mn)

Market Capitalisation 1 Government Ownership 2 Revenues 2 EBITDA Margin 2 Planned E&P Expenditure 3 US$ INR used for all translations: 45.14

ONGC

62,664 74.1% 22,915.1

44.5% 16,826.7

OIL

7,584 78.4% 1,751.3

46.9% 2,977.5

High Entry Barriers to Tap PSU segment

• • • • • • • • Pre qualification for PSU bids on the basis of technical expertise – – Minimum networth criteria Past track record 10% price preference over a foreign company for a contract bid Ability to offer advanced functionalities helps reduce operator ’s cost Ability to participate in complex operations/contracts Tie-ups with subcontractors for offering various services Tie-ups with vendors key for efficient rig procurement Mobility of equipment and employees Integrated offerings provide an efficient alternative to operators 300

Customer wise Historical Order book 277

53 200 100

136

28 74 18 16

171

30 59 65 17 80 127 0 2008 2009 2010 18 300 200 100 0

Customer wise Historical Revenue 136

28 74 2008 18 16

171

30 59 65 2009 17

277

53 80 127 2010 18 ONGC OIL PD Oman Others ONGC OIL PD Oman Others (1) (2) (3) US$ INR used for 2008 – 39.41, 2009 – 50.95, 2010 – 45.14

As of Nov 15 th 2010 As of FY ended March 31 st , 2010 For 2007-2012, Source: Planning Commission of the Government of India, Eleventh Five-Year Plan Report dated June 2008 20

Multiple Growth Opportunities

Invest in technology, training and development

 Build in-house technical expertise in areas currently dependent upon technical sub-contractors  Invest in R&D and training:  Keep pace with technological changes  Introduce new complementary service

Continue building order book of quality contracts

 Pursue new contracts in India and abroad backed by:  Demonstrated expertise and experience  Established track record  Concentrate on key customers  Offers integrated business services:  Improves quality of contract portfolio and generates higher profit margins

Explore opportunities to diversity

 Grow via international expansion and acquisitions  Invest in businesses aligned with strategic objectives  Middle East and North Africa ( “MENA”) region due to increased E&P activity and better margins

Expand business lines in specialised services

 Identify, evaluate and enter new business lines that offer services to complement existing operations  Expand CBM development services in India and abroad  Expand technical capabilities in integrated well services  Continue to collaborate with reputable third party suppliers and contractors to deliver additional product and service offerings 1

Experienced & Professional Management Team

Strong Leadership Team with Deep Industry Knowledge and Experience… Prem Singhee Padam Singhee

Chairman & Managing Director Joint Managing Director

• Associated with the company since its inception • Over 21 years of experience in oil & gas industry • Associated with the company since 1990 • Over 20 years of experience with more than 15 years in oil & gas industry

Prakash Chiman Lal Singhee Rajan Gupta J Swain

President CFO CEO (Technical Overseas)

• Joined the company in Jul-2008 • Previously employed at Infotat International in Houston, USA • Joined the company in Apr-1996 • Qualified Chartered Accountant, Company Secretary • Joined the company in Apr-2006

Pradip Kumar Chaudhary Gopal Mohta

Senior Vice President (Drilling and WO) Senior Vice President (Commercial)

• Over 35 years of experience • Joined the company in Oct-2005 • Previously served at Jindal Drilling & Industries • Holds a B.E. (Mechanical) Degree • Joined the company in Jan-1996

…With a Deep Bench… P.K. Gupta

Vice President (Finance)

S.K. Chandak S.M. Kaushik

Vice President (Technical) Vice President (Operations)

Dr. D.S.Mathur

A.K. Vasudeva Clinton Miller

General Manager - Contracts General Manager (HSE) General Manager (Directional Drilling)

S. Roy Chowdhury

General Manager (Geophysical Services)

Vimal Chadha

Company Secretary

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Financial Snapshot

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Strong Operating Profile

Revenue growth boosted by new contracts & higher tariffs Strong earnings growth Improving EBITDA margins

140 120 100 80 60 40 20 0 35% 38% 40% 124 56 69 21 FY 2006 FY 2008 (15 Months) EBITDA FY 2009 EBITDA Margin FY 2010

Increasing asset base Net Fixed Assets

45% 50% 40% 30% 20% 10% 0% US$ INR used for 2006 – 45.07, 2008 – 39.41, 2009 – 50.95, 2010 – 45.14

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Shiv-Vani: Significant competitive advantages

A leading player in onshore oilfield services Significant cost advantage

• Order book* of close to US$ 671m • Fleet size includes 40 on-land rigs and latest technology seismic crews – 10 sets • Offering integrated services model, towards which industry is moving • Well positioned to capitalise on large potential for growth • Economies of scale leading to cost advantage • Lower manpower costs, including cost of rotation • Pan-India presence • Strategic global sourcing • Own engineering workshops resulting in significant cost advantages and reduction in dependencies

Good working history with key customers and suppliers

• Successful track record with large upstream players in India and abroad • Well positioned to strengthen and grow these relationships • Good relationship with equipment suppliers leading to timely and economic procurement

Own asset base

• Ownership resulting in lower costs • Full control over deployment of assets • Ownership of majority of logistics support vehicles reduces cost of movement of equipment

Domestic bid advantage

• Indian PSUs provide 10% price preference to domestic players in bidding • Substantial portion of Company’s contracts with Indian PSUs • Well positioned to compete against potential foreign entrants, given track record and expertise

Experienced senior management and well-trained employees

*Order book as on 30 th Sep’10 • Expert senior management with substantial industry experience • Well qualified team of technical professionals • Over 1,000 well trained and skilled labour • Extensive in-house training program • Technological up-gradation from international JVs 25