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Selan Exploration Technology Limited

Corporate Presentation


COMPANY OVERVIEWSELAN CORPORATE PRESENTATION


Company Overview Founded in 1985, Selan is an established hydrocarbon

producing company operating 5 oil & gas fields in prolific

Cambay Basin in Gujarat, India

Publicly listed and traded on NSE & BSE

100% Ownership of all assets ~170 MM BOE Oil in place

Cumulatively produced 2.9 MM BOE over 20 years.

Expected to produce 5.3 MMBOE more of oil & gas with

significant unproved upside

Debt-free company. Steady cash flow & strong balance sheet

Significant opportunity to scale up and grow business with

remaining recoverable resources

Source

CB-ONN-2009/8

Karjisan

IndroraLohar

OgnajBakrol

Cambay

GandharSelan’s Fields

Major Fields

AnkaleshwarRecentDiscoveries


Corporate Highlights

Proven capability to maximize potential of marginal fieldsImpressive Track Record

• Cumulative production of 3 major fields prior to Selan – 125 K BOE (in approximately 25 years)• Cumulative production from 3 major fields under Selan – 2.9 MM BOE (in approximately 20 years)

Operating in well explored basin & mature marketLow Risk Operating

Environment

• Fields within 60 Km of Ahmedabad city in prolific & well defined Cambay basin• Close proximity to customer leading to low supply costs• Gujarat offers excellent infrastructure, geo-political & economic stability

Low risk strategy focused on maximizing recovery from under-exploited resourcesSignificant Opportunities

• Significant recoverable reserves offer multi-fold upside to oil production• Internationally experienced new management team with proven track record at Chevron, Cairn, Halliburton, Baker Hughes and

Petronas in place to develop and execute growth plans.

Consistently delivered high profitability across industry cyclesStrong Financial Position

• INR 1.1 Billion $ 17.5 MM cash reserves. ZERO Debt• Fully capable of funding organic as well as inorganic growth opportunities with internal accruals/generation


Impressive Profit Margin

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CUMULATIVE REVENUE, CAPEX, LIFTING COST, PROFIT PETROLEUM $ MILLION

Cumulative Capex Cumulative Lifting Cost Cumulative Profits Petroleum Cumulative Revenue

CAPEX $70 MM

REV. $180 MM

LIFT $19 MM

GOVT $11 MM

For Indrora, Bakrol and Lohar fields only


Impressive Profit Margin (Per BOE)

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CUMULATIVE REVENUE, LIFTING COST, PROFIT PETROLEUM, CAPEX $ PER BOE

Capex Lifting Cost Profits Petroleum Revenue

For Indrora, Bakrol and Lohar fields only


Board of Directors ChairmanRohit Kapur

Mr. Kapur is a graduate of Columbia Business School (MBA) and is a former General Manager of American Cyanamid Inc., a Fortune 100 Company for one of its international subsidiaries. A seasoned entrepreneur with international experience, he has played a pivotal role in the growth and evolution of SELAN since its inception.

DirectorDr. Derek CorbishleyDr. Corbishley is a graduate of the University of London and received a Doctorate in Geophysics from the University of Durham. He has had a distinguished career at Shell for over three decades after his first few years at the UK Department of Defense. He worked for Shell in Africa, South America, Brunei, UK and The Hague, Netherlands. He also served as the MD of Shell India for five years.

DirectorTarik CurrimbhoyA leading architect and non-resident Indian, living and practicing in New York. Mr. Currimbhoy did his post graduate studies from Cornell University. He is well known to the Indian community in the US and the Middle East ; and member of Board of Directors of SELAN.

DirectorS. Bhagwati DalalMs. Bhagwati Dalal is an Architect with 30 years of domestic and international experience, having earned the prestigious L’ Institute Francaise D’ Architecture scholarship to study and work in France. She is actively engaged with an array of NGOs and social organizations aimed at improving the overall quality of life of the citizens of our Country.

DirectorManjit SinghMr. Singh is a graduate from University of Delhi and seasoned TATA executive where he has had a 34 year long and illustrious career from the time he joined TATA Finlay in 1978 and retired in 2014 as CM of TATA’ Anamalai Tea Division. Having led various Strategic Business Units during his career, Mr. Singh has a wealth of management experience.

DirectorRaman SidhuMr. Sidhu is a qualified Chartered Accountant from the Institute of Chartered Accountants in England and Wales. He has served as a Senior Director and Board Director – HSBC Securities & Capital Markets (India) and as Director Fidelity Fund Management & Barclays Plc. He has also served as an Independent Director on several Boards, including BHEL, NHPC & IIFCL.


Management Team & Key Advisors

President & CEONeeraj Sethi

Neeraj Sethi, a graduate of IIT Mumbai, is an internationally accomplished business leader with extensive leadership experience in general management, P&L and business development in the upstream Oil and Gas industry. He has a proven track record of building and running businesses at a country and regional level. He has held senior leadership positions with leading multinational companies such as Baker Hughes, Halliburton and been the COO of a publicly listed company (Asian Oilfield Services). He has been awarded 4 patents and authored 4 SPE papers.

Subsurface ManagerManabesh ChowdhuryManabesh is an alumni of IIT Mumbai where he completed his Masters in Geo-exploration & Applied geology. He is an experienced technical professional with extensive experience technical interpretation & integration and in leading integrated sub-surface and field development teams at leading E & P companies, including Reliance, Cairn and Petronas. He has 7 international and 3 national publications to his name and is an active member of SPE, and AAPG.

Principal Drilling EngineerBiswajit Ghosh

Biswajit is a post-graduate in Petroleum Engineering from Louisiana State University and has over 3 decades of international experience in drilling operations and engineering in E&P and oilfield service companies including, Aramco, KOC, Halliburton, Addax, Perenco, Frontera, PTTP, Oxy and ONGC. He is a recognized expert in drilling and project management, well-engineering and design, risk assessments and performance drilling.

Sr. Technical Advisor to BoDDeepak Agrawal

Deepak is a post-graduate from University of California, Berkeley and the former Director, Technical and Executive Committee member at Cairn India Limited. He has held senior management positions in major E&P companies globally, including BP and Chevron. He is a recognized expert in reservoir description and management, asset development and mega-projects management.

Sr. Financial Advisor to BoDShiv

KapoorShiv is a Fellow of the Institute of Chartered Accountants of England and Wales and has twenty years of experience in a various financial disciplines including strategic planning, international tax and compliance. His career spans four continents where he has worked in Dubai, London, Baku, Jakarta, Aberdeen and Houston for leading oil and gas companies including Schlumberger and Transocean.

Sr. Completions AdvisorR. N. Mitra

R.N. Mitra is a Petroleum Engineering graduate from Indian School of Mines and has over 3 decades of experience in operations-completions and engineering in E&P companies including, ZADCO, Geo-Enpro, Canoro and ONGC. He is a recognized expert in completions, well-engineering and design and operational planning and execution.


ASSET OVERVIEWSELAN CORPORATE PRESENTATION


Cambay Basin Overview Basin area 59,000 sq. km

Discovered resources of over 15 Bn. Barrels

Balance proven reserves of over 750 MMBOE

178 discrete fields with median size 18 sq. km

Multi-Stack Reservoirs - Several producing &

prospective layers

Major Producing Fields

• Mehsana, Kalol, Ankaleshwar, Gandhar, Sabarmati, Wavel,

Gamij, Nawagam, Viraj, Sanand, Jhalora

Recent Discoveries

• Multiple Fields in CB-ONN (RIL, Jay, Sun Petro)

Selan Operated Fields

• Bakrol, Indrora, Lohar, Ognaj & Karjisan Source

Karjisan

IndroraLohar

OgnajBakrol

Cambay

GandharSelan’s Fields

Major Fields

AnkaleshwarRecentDiscoveries


Cambay Basin Stratigraphy

Kalol – Prolific Conventional Oil formation

• Lohar – Producing from K-III• Karjisan - Producing from K-IV & K-III• Bakrol - Producing from K-IX & K-VIII• Indrora - Producing from K-X• Ognaj – Tested in K-IX & K-X

Cambay Shale – Producing formation with significant upside potential

• Indrora – Main producing Interval• Bakrol – Deeper prospective interval

Olpad – Prospective Zone

• Indrora – Well intersections have flowed oil to surface. New technology could unlock the potential


Asset Summary

Shallow reservoirs Low cost drilling & completions Multiple horizons with a range of reservoir characteristics

• Reservoir Permeability – High perm sands to low perm silty reservoirs• Oil characteristics - Light to heavy oil with varying viscosities

Productivity managed via fit-for-purpose approach for each field

Key Facts Bakrol Lohar Indrora Karjisan Ognaj Total

Block Area (sq. km) 36 5 130 5 13.65 190

Reservoir Kalol Kalol YCS Kalol Kalol

Major Reservoir Depth 1500 1350 1400 1350 1500

API Gravity (-) 35-41 20 35 16 15

Formation Permeability (mD) 30 ~1000 0.1 to 2 ~1000 2 – 10

Dead oil viscosity @ 50° C (cP) 20 300 9 600 250

Drilled Wells/Producing Wells 29/23 13/6 16/6 4/1 3/Nil 65/39

Current Production (BOE/day) 400 130 70 - - 600


Typical Field Facilities


Bakrol – Location & Field Overview 36 sq. Km. block.

Discovered O&G Inplace: 79.8 MMBOil + 20.6 MMBOE Gas

ONGC discovery 1968 in BK-2 (Kalol)

Selan awarded Field in 1995 under pre-NELP PSC

ONGC Cum. Prodn. 35 K BOE from 7 wells.

Selan Cum Prodn. 2.07 MMBOE from 29 wells

Currently 25 of 29 wells producing.

Facilities: 2 Early Production Systems (EPS)

Delivery: Oil trucked to ONGC’s Navagam Terminal for

onward sales to IOCL

Gas sold to local customers via in-field transmission


Lohar – Location & Field Overview 5 sq. Km Block.

Discovered O&G Inplace : 3.8 MMBOil + 0.05 MMBOE Gas

ONGC discovery in 1981 LH-1 (Kalol)

Selan awarded field in 1995 under pre-NELP PSC

ONGC drilled 3 wells Cum prodn. 10.8 K BOE

Selan Cum Production 0.7 MBOE from 13 wells

Currently 6 out of 13 wells are producing.

Facilities: 1 Early Production System with heater/de-

emulsifier, Effluent treatment system and water injection



Gas used as fuel for internal use


Indrora – Location & Field Overview 130 sq km block.


ONGC discovery in 1971 IND-1 (Younger Cambay Shale)

Selan was awarded the Indrora Field on 13th March 1995

under a PSC signed with MoPNG

ONGC drilled 12 wells. Cum Production 76 K BOE

Selan drilled 6 wells (IND-11 to 16). Selan Cum Production

0.125 MMBOE

Currently 10 out of 16 wells are producing.

Facilities: 1 Early Production System




Karjisan – Location & Field Overview 5 sq km block.


ONGC discovered the Karjisan Field in 1985 by drilling the KJ-

1 well which produced gas from Kalol-III formation of Middle

Eocene Age

Selan was awarded the Karjisan Field on 16th Feb 2004


ONGC drilled only KJ-1 well.

Selan drilled KJ-2, 3, & 4 wells making an oil discovery in

Kalol-IV formation in KJ-3 well in 2014

Selan has submitted a DoC for the oil discovery, FDP is

planned later in 2017 with production starting 2018

There is 1 Early Production System in Karjisan Field


Ognaj – Location & Field Overview The Block covers an area of 13.65 Sq Km adjacent to

urbanized region of Ahmedabad city

Discovered O&G Inplace : 0.8 MMB Oil + 0.02 MMBOE

Gas

ONGC discovered the Ognaj field in 1982 and drilled two

wells (Ognaj-1 &2), Selan drilled the Ognaj-3 well in 2011

Selan was awarded the Ognaj Field on 16th Feb 2004


Ognaj block is in appraisal phase

Selan is maturing the technical understanding of Ognaj

field prior to initiating development activities


Phased Production Enhancement Plan

Unit

Bak

rol

Loha

r

Indr

ora

Kar

jisan

Ogn

aj

Tota

l

MMBOE 60.2 2.5 20.2 3.2 0.3 86.4MMBOE 2.10 0.70 0.21 0.00 0.00 2.90

Oil MMBOE 0.55 0.18 0.11 0.84 Gas MMBOE 0.21 0.36 0.57 Oil MMBOE 0.79 0.27 0.26 1.32

Gas MMBOE 0.32 0.32 Oil MMBOE 1.80 0.23 2.03

Gas MMBOE 0.22 0.22 OILMMBOE 3.14 0.41 0.38 0.26 0.00 4.19

GAS MMBOE 0.75 0.00 0.00 0.36 0.00 1.11ADDITIONAL MMBOE (OIL + GAS) 3.89 0.41 0.38 0.62 0.00 5.30

Phase-II Bakrol Drilling + Lohar Waterflood

2P Oil In Place

Cum. Oil Production

Baseline Decline

Phase-I Enhance Existing Wells

PHASED DEVELOPMENT


Asset Status and Prospects

Low geological riskOil in Place

• Fields extensively mapped with 3D Seismic and infill drilling

• Integrated static & dynamic modeling being implemented on all the fields

Significant oil remainingBalance

Reserves

• Current recoveries well below industry norm• Phased target to extract additional 4.2 MM BOE

oil + 1.1 MMBOE gas• Proven feasibility of production enhancement

Viable un-risked prospects with low entry barrier

Potential Upside

• Upside on existing zones & new targets in Olpad, Kalol & YCS.

• Oil flowed to surface• Discoveries in neighboring fields • Low capex with using existing wells for appraisal

Selan Fields

Lohar(28%)

Bakrol (3.4%)

Indrora(0.5%)

Resources Unit

Bak

rol

Loha

r

Indr

ora

Kar

jisan

Ogn

aj

Tota

l

2P Oil In Place MMBOE 60.2 2.5 20.2 3.2 0.3 86.4Cum. HC Production MMBOE 2.1 0.7 0.2 - - 2.9

Cum. Recovery to date % 3.5 28.0 1.0 - - 3.4

IEA Report 1997Jean L.


Bakrol – Basis of Development Plan Field producing from 23 of 29 wells Range of productivities Majority of wells need artificial lift to produce Bakrol wells need production enhancement via

hydraulic fracking Results from recent stimulation campaign increase

confidence in increasing production from improved well productivity

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WELL DISTRIBUTION BASELINE DECLINE (BOE)

WELL DIST WELL COUNT


Bakrol – Strategy in Action Pilot hydraulic fracturing campaign resulted in multi-fold

production enhancement

4 shut-in wells put on production

Net gain projected ~300K BOE over baseline projection

Full field implementation planned to enhance production to

extract ~800K BOE above baseline projection

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WELL DISTRIBUTION BASELINE DECLINE (BOE)


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WELL DISTRIBUTION BASELINE + FULL FIELD (BOE)



Indrora – Justification for Future Profile

Eagle Ford Indrora (YCS)

Reservoir Depth (m) 3500 1500

Reservoir Characteristics

Clay (5-45%) with carbonate

Clay (5-45%) with quartz & carbonate

Porosity 8-18 20-30

Permeability (mD) 0.007-0.03 0.0004-5.0

Well Type Vertical to Horizontal Vertical

Avg. Per Well Production (bbls)

115 30

Younger Cambay Shale reservoir

Similar to prolific American Shale

reservoirs (Eagle Ford)

Hydraulic Fracturing & Horizontal drilling

allow economic recovery

3 Well Pilot project underway to

establish Frac. effectiveness

Plays


LOHAR – Analogous Fields & Successful Execution

Lohar water-cut is currently 65-75%

Worldwide analogous reservoirs generally recover over half of ultimate recoverable oil recovery after reaching

90% water cut

Recent pilot for artificial lift enhancement delivered significant incremental production

Field-wise implementation in progress along with pilot waterflood

Battrum East Roseray, Canada

SPE 113132 2009, Denis B.

0102030405060708090100

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Cum Oil Produced, Mbbl

Lohar Field Performance

Oil Rate bopd %wc


KARJISAN HIGHLIGHTS KARJISAN OIL UPDATE

• Established Sustained production on KJ-4

• Oil delivery started May-2017

• Field development plan in progress

READY TO DELIVER GAS

• Well deliverability established

• Buyer & sales agreement in place.

• Delivery expected Oct-2017

Selan’s Oil Characteristics

Lohar, Ognaj,

Karjisan

Bakrol, Indrora


UPSIDE POTENTIALSELAN CORPORATE PRESENTATION


Upside Potential Large area of Bakrol and Indrora fields are undeveloped

Historical Chance of Success (CoS) in Bakrol is very high

In addition to YCS reservoir in Indrora upside in Olpad, YCS-II & Kalol

Bakrol Indrora

Undeveloped

Undeveloped


Fiscal Terms


Favorable Fiscal Regime 100% Working Interest in all fields + operator Stable PSC regime 25 Year Contract, 10 Year Extension Provision 100% Cost Recovery Allowed Profit Petroleum 100% to Selan Up to IM of 3.5, 50%

thereafter Economic Stabilization, In-Country Arbitration Low Royalty, Cess (~$3/bbl) Crude Sold to IOC at ~ Brent minus 3% pricing


Valuation


Future – Low Investments, High Return

$519 m

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FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030

Cumulative Revenue, Capex, Lifting Cost, & Profit Petroleum $ Million (Phase - I & II Proven Development)

Cumulative Capex Cumulative Lifting Cost Cumulative Profits Petroleum Cumulative Revenue


Future Margins – Expected to grow

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FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030

Revenue, Capex, Lifting Cost, & Profits Petroleum $ BOE(Phase I & II - Developing Proven Resources)

Capex Lifting Cost Profits Petroleum Revenue


Cash – Massive Cash Generation

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$MIL

LIO

N

Cumulative Cash (Cash Stored Until 2030)

Base Phase 1 Phase 2


Key Risks Long term Outlook on Oil Prices Extension of PSCs for Bakrol, Indrora and Lohar

Risks " not present in Selan " ...• Lack of significant oil in place or hypothecation of reserves• Manpower availability• Pending / un-met work commitments• Debt & Lack of any funds requirement• Partners and associated disputes• Challenges to create additional infrastructure• Any downside from litigation• Income Tax claims. All assessments current thru 14-15• Major GoI Audit Exceptions


Selan Valuation – Value of Reserves

Market Cap INR 258 crs

Less: Cash on hand INR 111 crs

Enterprises Value (EV) INR 147 crs

EV in USD USD 23 mill

Proved Reserves 5.33 MMBOE

EV per BOE proved reserves USD 4.33 PER BOE

Equivalent International Benchmark EV/BOE USD 20.0 PER BOE


DisclaimerThis material contains forward-looking statements regarding Selan Exploration Technology Ltd, its corporateand business strategies and plans, future financial condition and results of operations. All such forward-looking statements are based on the management's assumptions and beliefs in the light of informationavailable to them at this time. These forward-looking statements are by their nature subject to significantrisks and uncertainties; and actual results, performance and achievements may be materially different fromthose expressed in such statements. Factors that may cause actual results, performance or achievements todiffer from expectations include, but are not limited to, regulatory changes, future levels of industry productsupply, demand and pricing, weather and weather related impacts, wars and acts of terrorism, developmentand use of technology, acts of competitors and other changes to business conditions. Selan ExplorationTechnology Ltd undertakes no obligation to revise any such forward-looking statements to reflect anychanges in Selan Exploration Technology Ltd’s expectations with regard thereto or any change incircumstances or events after the date hereof. Unless otherwise stated, the reserves and resource numberswithin this document represent the views of Selan Exploration Technology Ltd and do not represent the viewsof any other party, including the Government of India, the Directorate General of Hydrocarbons.

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