Shiv-Vani Oil & Gas Exploration Services Limited

Company Overview 3

Business Overview 7

Key Investment Highlights 15

Financial Snapshot 23

i

Table of Contents

3

Company Overview

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 30th 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

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

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

Shiv-Vani Evolution

1990-93

1994-98

1999-04

2005-08

2009

2010-11

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

• 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

• 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

Growth history

5

6

• 4 Rigs

• 4 Rigs leased to SV India

• 2 Seismic sets working for Seismic Solutions in Middle east

SV Oil & Natural Gas Limited (Mauritius)

Other Subsidiaries

• Shiv-Vani Oil Services Limited (India)

• Shiv-Vani Singapore Pte Limited (Singapore)

• 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

99%100%

• 8 Rigs

• Rigs leased to SV India

100% 100%

Shiv-Vani Oil & Gas Co. LLC

(Oman)

Natural Oil & Gas Services

Limited (Mauritius)

• Oil Blocks Holding Limited (Cyprus)

• SV Videsh Limited (Cyprus)

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

100%

1% TNG Shiv Geo Oil Services

Limited (India)

51%

Organisational Structure

7

Business Overview

8

Services Revenues1

($m)% of Total Revenues

Description

117.4 42%

• 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$35m1

137.1 49%

• 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$520m1

19.1 7%

• 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$89m1

2.3 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

1.5 1%

• 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$27m1

Deep Drilling

Seismic

Coal Bed Methane

Integrated Well Services

Other Services

Established Integrated Oil & Gas Services Provider

(1) As of Sep 30th , 2010 US$ INR used for all translations: 45.14 as of March 31st, 2010& 44.92 as on 30th Sep 2010

9

Offering high-tech seismic services

Sourcing from world class vendorsSeismic services

• 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)

• 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 30th Sep 2010)

10

Note: Split of fleet shown in terms of capacity

Amongst the largest onshore advanced deep drilling services provider in India

Deep drilling servicesExtensive range of 40 rigs

Sourcing from world class vendors

• 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 30th Sep 2010)

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

& Shaffer (USA)– Mud System – Derrick (Europe)

11

10

1

6

3

-

Round III

Round I*

Round IIRound

IV

PSUs 4 5 Nil

PSU - Private JVs - - Nil

Private JVs - - 8

Other private ` 4 3 Nil

Total 8 8 8

*Including 3 awarded on nomination/FIPB routeSource: Directorate General of Hydrocarbons website

Demonstrated successful diversification into CBM services

Growth potential from largely unexplored blocksCoal 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

• 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 30th Sep 2010)

12

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

Other businessesIntegrated well services

• Evolving as a 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 – PSU’s increasingly prefer to allot a

consolidated contract to a vendor, who in turn selectively sub-contract to global oilfield services companies like Halliburton, Schlumberger

– 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

• Invested into R&D to develop in-house expertise on high end value added services

• 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

13

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

14

Expanding operations: pan India and internationally

ONGC, 2 Nos. 2000 HP Integrated Drilling Rigs at Agartala

OIL, 3 Nos. 2000 HP & 1 No. 1500 HP Drilling Rigs & 2 Nos. Work over Rigs at/near Duliajan

ONGC, 2 Nos. 2000 HP Integrated Drilling Rigs & 1 Nos. 175 Ton Work over Rigs at Rajahmundry

ONGC, 1 No. 2000 HP Integrated Drilling Rig at Itarsi, MP (Frontier Basin)

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

ONGC, Integrated CBM Operation at Bokaro

ONGC, 3D Seismic Data Acquisition – Sector-I, Sibsagar

ONGC, 3D Seismic Data Acquisition – Silchar

ONGC, 3 Nos. Crew Boats – Mumbai Offshore

ONGC Charaideo Marginal Field

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

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, 3D Seismic Data Acquisition – Sector-IX, Mehsana/Patan

ONGC, 3D Seismic Data Acquisition – Dumapur

One No. E&P Block NELP-VI, OIL + Shiv+Suntera

ONGC, 2 Nos. 2000 HP Integrated Drilling Rigs & 2 No. 175 Ton Work over Rig at Ankleshwar

ONGC, 3 Sets. MWD, SDMM and Drilling Jar along with Directional Drillers at Ankleshwar

ONGC, Shot Hole Drilling & Seismic Job Services - Tura, Meghalaya

ONGC, Shot Hole Drilling & Seismic Job Services - Damoh & Zabera, MP

ONGC, Shot Hole Drilling & Seismic Job Services - Katni, MP) ONGC, Shot Hole

Drilling & Seismic Job Services - Cachar

ONGC, 2D Seismic Data Acquisition – Rajouri to Punch, Himalayan Foothills of J&K

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

ONGC, 2D Seismic Data Acquisition, using Vibroseis – Duliajan

ONGC, 2D Seismic Data Acquisition – Manabum, AP

ONGC, 2D Seismic Data Acquisition –Pasighat AP

ONGC, 2D Seismic Data Acquisition – KG Basin, Across river

ONGC, Shot Hole Drilling & Seismic Job Services - Solan, HP

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, Shot Hole Drilling & Seismic Job Services- Pondicherry, Tamil Nadu

ONGC, Reservoir Data Acquisition for two years at Ankleshwar, Bharuch in Gujarat

Work overDrillingIntegrated Services for CBM

Oil & Gas Exploration

2D/3D Seismic Data Acquisition CrewShot Hole

Reservoir Data Acquisition

PDO, Oman, Drilling & Work over evergreen contracts

Note: Above illustration covers current and recently completed projects

15

Key Investment Highlights

Key Investment Highlights

1

2

4 3

6

5

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

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

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

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

Exploration blocks awarded to PSUs under NELP I-VII

Strong Macro Drivers : India

Seismic surveys 2D (km)

Seismic surveys 3D (sq. km)

PSU E & P Outlay (US$m)

Source: Report of working group on Petroleum & Natural Gas for XI Plan; XI Plan report for Energy sector

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

Growth: 154%

Exploratory drilling (metreage km) Exploratory wells (No.) Development wells

(No.)

17

• Demand Supply Curve of Oil of 2011-25 suggests a gap of 315 MMTPA against a demand of 376 MMTPA

• Demand Supply Curve of Gas 2011-25 suggests a gap of 221 MMSCMD against a demand of 391 MMSCMD

• 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 on Petroleum product pricing to encourage investments

• Emphasis on CBM - Coal Gas Methane, Gas Hydrates, UCG – Underground Coal Gasification , Shale Gas etc.

2002-07 2007-12

PSUs awarded147 blocks out of total no. of 239 blocks between 2000-2009

18

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

Rising Domestic Energy Consumption CAGR 6.4%

WORLD : Energy Source

INDIA : Energy Source

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

Established Integrated Oil & Gas Services Provider

Business Segment wise Historical Order book

Shiv-Vani

JE1 DR1 AlphageoAsian

Oilfields

Seismic

Onshore Drilling

Directional Drilling

Well Logging

Mud Logging

Cementation

CBM Services

• 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

(1) JE – John Energy, DR – Dewanchand Ramsaran

19

US$ INR used for 2008 – 39.41, 2009 – 50.95, 2010 – 45.14

Business Segment wise Historical Revenue

Source: Respective company websites

69 85117

5063

141

2723

19

146171

277

0

100

200

300

2008 2009 2010

US

$ m

n

Seismic & Shot Hole Drilling & Integrated Services CBM Projects

69 85117

5063

141

2723

19

146171

277

0

100

200

300

2008 2009 2010

US

$ m

n

Seismic & Shot Hole Drilling & Integrated Services CBM Projects

20

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

US$ INR used for all translations: 45.14

Key Customers (US$ mn) ONGC OIL

Market Capitalisation1 62,664 7,584

Government Ownership2 74.1% 78.4%

Revenues2 22,915.1 1,751.3

EBITDA Margin2 44.5% 46.9%

Planned E&P Expenditure 3 16,826.7 2,977.5

(1) As of Nov 15th 2010(2) As of FY ended March 31st, 2010(3) For 2007-2012, Source: Planning Commission of the Government of India, Eleventh Five-Year Plan Report dated June 2008

US$ INR used for 2008 – 39.41, 2009 – 50.95, 2010 – 45.14

Customer wise Historical Order book Customer wise Historical Revenue

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

74 65

12716 59

80

1817

18

2830

53

136171

277

0

100

200

300

2008 2009 2010

US

$ m

n

ONGC OIL PD Oman Others

74 65

12716 59

80

1817

18

2830

53

136171

277

0

100

200

300

2008 2009 2010

US

$ m

n

ONGC OIL PD Oman Others

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 contractsPursue 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 servicesIdentify, 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

22

Experienced & Professional Management Team

Prem Singhee Chairman & Managing Director

• Associated with the company since its inception

• Over 21 years of experience in oil & gas industry

Padam Singhee Joint Managing Director • Associated with the company since 1990

• Over 20 years of experience with more than 15 years in oil & gas industry

Prakash Chiman Lal Singhee President • Joined the company in Jul-2008

• Previously employed at Infotat International in Houston, USA

Rajan Gupta CFO • Joined the company in Apr-1996

• Qualified Chartered Accountant, Company Secretary

J Swain CEO (Technical Overseas)

• Joined the company in Apr-2006

Pradip Kumar Chaudhary  Senior Vice President (Drilling and WO)

• Over 35 years of experience

• Joined the company in Oct-2005

• Previously served at Jindal Drilling & Industries

• Holds a B.E. (Mechanical) Degree

Gopal Mohta Senior Vice President (Commercial)

• Joined the company in Jan-1996

Strong Leadership Team with Deep Industry Knowledge and Experience…

P.K. Gupta Vice President (Finance)

S.K. Chandak Vice President (Technical)

S.M. Kaushik Vice President (Operations)

Dr. D.S.Mathur General Manager - Contracts

A.K. Vasudeva General Manager (HSE)

Clinton Miller General Manager (Directional Drilling)

S. Roy Chowdhury General Manager (Geophysical Services)

Vimal Chadha Company Secretary

…With a Deep Bench…

23

Financial Snapshot

24

Strong Operating Profile

Improving EBITDA marginsRevenue growth boosted by new contracts & higher tariffs

Strong earnings growth

CAGR: 59%

21 56 69

124

35%38% 40%

45%

0%

10%

20%

30%

40%

50%

0 20 40 60 80

100 120 140

FY 2006 FY 2008(15 Months)

FY 2009 FY 2010

Mar

gin (%

)

EB

ITD

A (U

S$m

)

EBITDA EBITDA Margin

US$ INR used for 2006 – 45.07, 2008 – 39.41, 2009 – 50.95, 2010 – 45.14

Increasing asset base

6x growth

Net Fixed Assets

25

Shiv-Vani: Significant competitive advantages

*Order book as on 30 th Sep’10

A leading player in onshore oilfield

services

Significant cost advantage

Good working history with key customers

and suppliers

Own asset base

Experienced senior management and

well-trained employees

Domestic bid 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

• 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

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

• 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

• 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