SHAHZAD INTERNATIONAL GROUP OF COMPANIES

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
February - 2011

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 Groups 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; supply of state-of-the-art equipment & machinery; large scale construction projects like airports, hotels; information technologies, telecommunication; and production of security documents. With its sound financial position, the Group companies are in business independently, as well as in collaboration with foreign partners, since 1980. The Groups 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

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 centers, 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 2

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 Civil Aviation, Civil Construction, Airports, Hotels Environment, Pollution Treatment Procurement Services Consultancy and Project Manpower Support Gold Exploration and Prospecting Minerals, Gemstones and industrial rocks Coal washing and coal gasification Security Documents, and security related materials Computerized Vehicles Licensing Systems. Security Services including Police Wireless Systems, VIP Security Systems 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

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 3 Offshore Exploration Licenses. 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. 1 Name of the Blocks Award Date / Status 13th Mar 02 Area (Sq Km) 122 Working Interest Owners PEL (Operator) OGDCL Sherrit (Canada) Spud 26.32 % 50 % 15.79 % 7.89 %

Badar Mining Lease

2 3 4 5

Hasan D&PL Sadiq D&PL Khanpur D&PL Hamza (DOC under process)

3rd Apr 03 3rd Apr 03 3rd Apr 03 7th Sep 04

37.05 40.72 41.78 173.12

PEL (Operator) PPL Pyramid (Canada) GHPL PEL (Operator) Frontier Holdings (Canada) GPXP GHPL

26.18 % 35.52 % 15.79 % 22.50 % 35% 35% 25% 5%

Kandra D&P Lease

5th Jan 06

286.08

On shore Exploration Licenses S. Exploration License Award Date / Area No. Name & Block No. Status (Sq Km)
1 Mirpur Mathelo (2769-9) 3-Jun-02 1030.7

Working Interest Owners

PEL (Operator) Frontier Holdings (Canada) GPXP GHPL PEL (Operator) Frontier Holdings (Canada) GPXP PEL PEL (Operator) Frontier Holdings (Canada) GPXP PEL (Operator) Frontier Holdings (Canada) GPXP PEL (Operator) OGI PEL PEL PEL 35% 35% 25% 5% 37.5% 37.5% 25% 100% 37.5% 37.5% 25% 37.5% 37.5% 25% 40.00% 60.00% 100% 100% 100%

Salam (2769-13)

20-Dec-02

200.22

3 4

New Larkana (2768-10) Badin IV North ( 2468-6)

3rd June 05 5th Jan 06

2426 1246.03

Badin IV South (2468-5)

5th Jan 06

1265.3

Jhangara (2567-5)

27th Apr 05

358

7 8 9

Kaloi (2468-8) Sanghar East (2669-5) Mirpur Khas West (2568-16)

25 Sept. 2007 25 Sept. 2007 25 Sept. 2007

2485.14 2493.13 199.26

Offshore Exploration Licenses

1 Offshore Indus-J (2266-4) 29th Sept. 06 2436.3 PEL (Operator) British Petroleum (UK) PEL (Operator) British Petroleum (UK) PEL (Operator) British Petroleum (UK) 67% 33% 67% 33% 67% 33%

Offshore Indus-P (2365-3)

29th Sept. 06

897.48

Offshore Indus-O (2266-7)

29th Sept. 06

833.78

Overseas Petroleum Concessions

1 Haha-1 (North) Morocco 10 May 2007 1608 sq. km PEL (Operator) 75% ONHYM 25% (State Oil & Gas Company of Morocco) 10 May 2007 1760 sq. km PEL (Operator) 75% ONHYM 25% (State Oil & Gas Company of Morocco) 10 May 2007 1551 sq. km PEL (Operator) 75% ONHYM 25% (State Oil & Gas Company of Morocco)

Haha-2 (Centre) Morocco

Haha-3 (South) Morocco

PELs Working Interest in Sukkur Block Operated by Mari Gas Company Ltd
PEL Mari Gas (Operator) 41.176% 58.824%

Sukkur (2768-9)

7th Jan 06

2435.4

PEL is expected to drill 31 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 Petroleum Exploration (Pvt) Limited Pyramid Energy International Inc. (Canada) Government Holdings (Pvt) Limited 35.52% 26.18% Operator 15.79% 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, Khanpur and Sadiq Gas Fields were awarded on 3 April 2003. Wells drilled in this Block and estimated reserves are given below.

Structure Hamza Structure Hasan Structure Sadiq Structure Yusuf Structure Khanpur Structure Current Status:

Maximum Depth
1346.3M 1132M 1172M 1450M 1230M

Estimated Reserves 28.45 Bscf 208 Bscf 52 Bscf - abandoned 51 Bscf

BTU 640 652 734 --850

In order to fully evaluate the field potential and its extent in Hasan field, a 10 line Km seismic data was acquired. Based on the available new data and remapping, the field size has increased. PEL is now planning to drill Hasan-4 development well to enhance its Hasan field production from current 14 MMSCF to 20 MMSFD. The well is planned in the last quarter of 2010. 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. 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: 7

Exploration Petroleum Exploration (Pvt) Ltd (Operator) Frontier Holding Limited, Canada GPX, Kuwait Government Holdings (Pvt) Ltd 35% 35% 25% 5% (Carried)

SML Development Petroleum Exploration (Pvt) Ltd (Operator) Frontier Holding Limited, Canada GPX, Kuwait 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) Sherrit International (Canada) Spud (Australia) OGDCL 26.32% 15.79% 7.89% 50.00% 37.5% 37.5% 25%

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 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) Frontier Holding Limited, Canada GPX, Kuwait Government Holdings (Pvt) Ltd 35% 35% 25% 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 8

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 didnt 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 Pakistans Central Indus Basin. It is due west of Khandkot and Qadirpur gas field and due east of Premiers 1994 gas discovery at Badar. The block was formerly licensed to Qadirpur consortium (OGDCL, 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) Frontier Holding Limited GPX, Kuwait The minimum work commitment was as follows: Licence Year First Year Phase I Second Year Third Year Phase II Fourth Year Fifth Year 9 Minimum Work Data Review G & G Studies 30 Line KM 2D Seismic Acquisition G & G Studies One Exploratory Well to test tertiary Carbonate (Contingent) Optional 37.5% 37.5% 35%

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) PELs working Interest License Number Province Geological Province Prospectivity zone Area Date of grant: Minimum Work Programme Contract Year Initial Term Phase-I First Year Minimum Work Geological and Geophysical Studies Acquisition of 2D 100 Line Kms seismic Geological and Geophysical Studies Minimum Expenditure (US Dollars) 100,000 500,000 Second Year 100, 000 1,250, 000 One exploratory well upto a depth of 1,700 meters or 100 meters inside SML, whichever comes earlier (Firm) 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
TOTAL FIRM EXPENDITURE

100% 352/PAK/2005 Sindh Middle Indus Basin III 2425.96 sq. km 3 June 2005

1,500, 000

1,250,000

4,700,000

Phase-II

Fourth Year Fifth Year

10

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. Blocks potential is estimated to be around 300 350 BCF gas and about 2-5 million barrels oil. Working interest owners are: PEL (Operator) Frontier Holdings(Canada) GPXP Minimum Work Programme
Block 2468-6 (Badin IV North) Date of award: 5 January 2006

37.5% 37.5% 25%

Extension in 3rd year Exploration Licence (Phase-1) until Dec 7, 2010 Minimum Firm Commitment (million US$) 0.05 1.1 Yes 2D seismic data acquisition: 305.4 line km. Work commitment over fulfilled

Term

Phase

Contract year

Minimum Work G & G studies

Status

Initial Term

Phase-1

Acquisition, Processing & interpret. of 150 Line 2D seismic survey First Year 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 G & G studies Reprocessing & interpretation of existing seismic data 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 G & G studies One exploratory well to test the potential of Sembar Sands by drilling 50m inside the Sembar Sands or 3,100m, whichever is shallower Total Firm Commitment

1.1

Planned

Second Year

0.05 0.05

Yes Reprocessed vintage 2D seismic : 289.25 line km

1.3

Planned

0.05

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

Third Year

1.5

5.2

11

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 Pakistans 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 after monsoon. Spudding of Wahid-1 Exploratory Well Wahid-1 Well location in Badin-IV North Block, has been staked. Process to acquire land has been initiated and civil works have started. Tendering for rig and well services is in the advance stages. Wahid-1 planned to be spud in November 2010, will be drilled to a target depth of 2300 m in the Middle Sand and will test hydrocarbon potential of Upper Sands. The well is expected to be tested and completed within 45 days.

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. Blocks 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) Frontier Holdings (Canada) GPXP 37.5% 37.5% 25%

12

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

Extension in 3rd year Exploration Licence (Phase-1), i.e. 4 July 2010 Contract year Minimum Firm Commitment (million US$) 0.05 Yes 2D seismic data acquisition: 492.8 line km Work commitment over fulfilled Planned Yes Reprocessed vitage 2D seismic : 629.15 line km Planned Yes

Term

Phase

Minimum Work G & G studies

Status

Initial Term

Phase-1

First Year

Acquisition of 100 Line km 2D 0.7

01 Exploratory Well upto 2,500 m (100m inside Upper Sand or 2,500m, whichever is shallower) G & G studies Second Year Reprocessing

1.25

0.05 0.05

01 Exploratory Well upto 2,500 m (100m inside Upper Sand or 2,500m, whichever is shallower) G & G studies Third Year 01 Exploratory Well upto 2,500 m (100m inside Upper Sand or 2,500m, whichever is shallower) 01 Exploratory Well upto 2,800 m / Basal sand (50m inside Basal Sand or 2,800m, whichever is shallower) Total Firm Commitment

1.25

0.05 1.25

Planned

1.3

Planned

5.95

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. Spudding of Ayesha-1 Exploratory Well Badin Area is a proven oil district, established in 1983 and since then 59 oil and gas discoveries have been made in the region. Two well locations Ayesha-1 and Zahrah-1 have been staked and a reconnaissance survey has been carried out for Shahbaz and Haleema locations. 13

Process to acquire land for Ayesha-1 location has been initiated. Tendering for rig and well services is in the advance stages. Ayesha-1 will be drilled down to 2625 m in the Upper Shale and will test hydrocarbon potential of Upper Sands. The well is expected to be tested and completed within 51 days. Another prospect Aminah has also been upgraded to a drillable prospect. 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. Blocks potential is estimated to be around 250 300 BCF gas. Working interest owners are: PEL (Operator) OGI 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. 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 was put on EWT production on January 28, 2010 producing over 5 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 14 40.00% 60.00%

Indus-1B well and have decided to drill an exploratory well to test Sui Main Limestone. The well has been be staked out on February 14, 2010 at SP 735 line 94-16. The drilling is expected to start in the first quarter of 2011. PLANNED EXPLORATORY WELLS AND OTHER RELATED ACTIVITIES Badin-IV North Wahid-1 well location in Badin-IV North Block has been stacked. Land acquired and Civil Works started. Tendering for Rig and well services have been finalized. The well will be drilled down to 2300M in the Middle Sand and will test hydrocarbon potential of Upper Sands. The well is expected to be tested and completed within 45 days from the date it is spud-in. Badin-IV South Badin area is a proven oil district, established in 1983 and thereafter 59 oil and gas discoveries have been made in the region. Two well locations Ayesha (Ex-Garahi-1) and Zahrah (Ex-Chandan-1) have been stacked and reconnaissance surveys have been carried out for Shahbaz and Haleema (Ex-Musafir) locations. Land has been acquired for Ayesha (Ex-Garahi-1), tender for Rig & well services have been finalized. Civil Work will be commenced after monsoon. First Exploratory Well in Badin IV South named as Ayesha (Ex-Gharahi) would be drilled after Wahid-1(Badin North) back to back. The well will be drilled down to 2625M in the Upper Shale and will test hydrocarbon potential of Upper Sands. The well is expected to be tested and completed within 51 days. Aminah location has also been proposed for drilling as first well in Badin South. The T.D of well is 2230M (in case of good hydrocarbon shows persist, drilling may be continued to 2500M in Upper Shale). Initial reconnaissance survey has been carried out for Aminah. After approval from JVPs, Aminah or Ayesha (Ex-Gharahi) would be drilled as a first well in Badin South Block.

15

OFFSHORE ACTIVITIES Petroleum Exploration (Pvt) Ltd has entered the realm of offshore exploration. The Company has executed three Offshore Production Sharing Agreements with Government of Pakistan over Block No. 2266-4 (Offshore Indus-J) covering an area of 2436.3 kms, Block No. 2266-7 (Offshore Indus-O) spread over an area of 833.78 kms and Block No. 2365-3 (Offshore Indus-P) covering an area of 896.48 kms. All the three Blocks are 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. OVERSEAS EXPLORATION 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 is also looking at investment opportunities in other countries as well. It is actively considering to acquire producing oil & gas assets outside Pakistan specially in countries of Middle East, Africa and Eastern Europe.

Contact:

Brig(R). Mohammad Saleem

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

16

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 Nortechs 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. Nortechs personnel operate under strict procedures to ensure complete satisfaction for clients, including systematic quality control procedures at all phases of survey operations. The companys ability to deliver the final product of a project on a timely basis results from years of experience operating on a worldwide scale. Contact: Brig(R). Mohammad Saleem
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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DEFENCE TECHNOLOGIES INTERNATIONAL

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: dti@isd.wol.net.pk Web: www.shahzadintl.com.pk

Defence Technologies International (DTI) is registered with Directorate General Defence Procurements, Ministry of Defence, Government of Pakistan. The Company deals in procurement of high tech defense related equipment and its supply to Armed Forces of Pakistan. DTI specializes in meeting the sophisticated equipment requirements, not only of the Armed Forces of Pakistan but also of para-military organisations, law enforcing agencies and a number of Research and Development Organizations in public & private sectors along with security companies. Besides military hardware, the company also indents and provides other commodities and equipment needed by Armed forces. The wide range of its services and business include the supply of the following: Small arms, Artillery and Tank ammunition Anti tank weapon systems Air Defence Missile systems Radar Systems Unmanned Aerial Vehicles (UAVs) Thermal Imaging systems Auxiliary Power Units (APUs) Specialized vehicles spare parts Navigation, Guidance and Control Simulation systems NBC Detection, Protection and decontamination Specialized clothing and camouflage Radar absorbing materials Communication equipment Security equipment Broadcast equipment Industrial Equipment Scientific & Analytical equipment Test & Measurement equipment Chemical & Raw Materials Fire Fighting Industrial Machinery & Construction equipment Specialized Trucks Heavy Duty Mobile Cranes Field Camp & Maintenance systems Laser & Optics Precision mechanics &Electronics

The company provides consultancy services as well and is the sole representative in Pakistan of a number of foreign manufacturers. Contact: Mr. Adnan Sarwar Cheema
Mob: 92-300-8558221 Tel: 92-51-2299030 & 37 (2 Lines), Fax: 92-51-2287154 & 55 (2 Lines), E-mail: dti@isd.wol.net.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. 2. 3. 4. GOLD in Hushe and Ranthak, Ganche District; RUBY and MARBLE in Ahmadabad-Hunza; AQUAMARINE in Dasso-Shigar; and 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. (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. The companys 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. 19

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 Pakistans 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. GMCs 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:

Noor Mohammad Khan

Mobile: 0300-8359162 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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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 a joint venture undertaking of Petroleum Exploration (Pvt) Limited (PEL) with Frontier Holdings Limited (FHL) a subsidiary of Jura Energy Corporation) for setting up the 120 MW Kandra Power Project, estimated to cost approximately US$ 120 million. 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 3 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 21

heating value for power generation is provided by the Low Btu Gas as fuel. 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 1 2 3 Project Name Project Location Kandra Power Project The Thermal Power Complex will be located near the Kandra Gas Field in Sindh Province, Pakistan

Project Brief and 120 MW Combined Cycle Power Plant (CCPP) on Configuration 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. Project Statistics An area of approx. 30 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). Project Costs in US$ 120 million. US$ COD 36 months from the grant of a Letter of Support (Commercial (LOS) by PPIB (Private Power & Infrastructure Operation Date) Board), Ministry of Water and Power, Government of Pakistan and 24 months after achieving financial close. Internal rate of 12.4 % IRR and 15 % ROE. Return (IRR) / Return On Equity (ROE) Project Partners Petroleum Exploration (Pvt) Ltd (PEL) (main sponsor) with Frontier Holdings Limited (FHL) a Canadian Energy firm, as JV partner. Power Purchaser National Transmission and Dispatch Company (NTDC)/WAPDA shall purchase electricity according to a PPA from KPC on a Tariff approved by NEPRA. Government of Pakistan is providing sovereign guarantee according to Implementation Agreement (IA).

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Implementation Agreement (IA)

Contact: Address: Tel: (Dir): Tel: Fax: E-mail: Website:

Mr. M. Zafarullah Khan Senior Executive Vice President (Power) PEL 20, Margalla Road, Sector F-8/3, P.O.Box 1440, Islamabad, Pakistan 92-51-2287179 92-51-2287170-74 (5 lines) 92-51-2287154 & 55 (2 lines) pel@pepl.com.pk & kpc@shahzadintl.com.pk www.shahzadintl.com.pk 23

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 is the key to success for Shahzad Travels. 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 VVIP. Contact: Omar Chohan
Mob: Tel: Tel: 92-342-8755111 92-51-2276182-84 (Three Lines), Fax: 92-51-2276191 92-51-2276178 / 2276188,

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FLASH SECURITY SERVICES (PVT) LTD.

House 2, Street 19, Sector F-8/2, Islamabad - Pakistan Tel: 92-51-2853950, 2262816, 2250597, Fax: 92-51-2262816 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 companys 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 Mr. Zafar Iqbal
Mob: 92-300-8506005 Tel: (D) 92-51-2214092

Contact:

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PETROLEUM-CUM-BUSINESS DEVELOPMENT CLUB

(Under Development)

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

Ministry of Interior, in consultation with Capital Development Authority and Islamabad Administration, has granted permission to Shahzad International to establish a Petroleum-cum-Business Development Club at Islamabad. Shahzad Group is in the process of acquiring a suitable piece of land for this purpose. Petroleum-cum-Business Development Clubs are functioning in most of the developed countries. These clubs provide a very effective forum to facilitate foreign investment. Shahzad International plans to open the membership of the club to senior executives of national / international companies engaged in oil and gas exploration and production in Pakistan. Besides, senior officials of international financial institutions, diplomats and senior government functionaries will also be invited to become members. The Club will provide a very effective venue for purposeful discussions and seminars for the development of upstream and downstream petroleum and energy sectors in Pakistan. It will hopefully play a significant role in attracting foreign investment in line with the policy of the Government of Pakistan.

Contact: 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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