Selan Exploration Technology Limited: Corporate Presentation

Selan Exploration Technology Limited
Corporate Presentation
Page 1
SELAN CORPORATE PRESENTATION
COMPANY OVERVIEW

Page 2
Company Overview
 Founded in 1985, Selan is an established hydrocarbon
producing company operating 5 oil & gas fields in prolific CB-ONN-2009/8
Karjisan
Cambay Basin in Gujarat, India
Lohar Indrora
 Publicly listed and traded on NSE & BSE Ognaj

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

Cambay
 Cumulatively produced 2.9 MM BOE over 20 years.
 Expected to produce 5.3 MMBOE more of oil & gas with
Selan’s Fields Gandhar

significant unproved upside
Major Fields
Ankaleshwar
 Debt-free company. Steady cash flow & strong balance sheet Recent
Discoveries
 Significant opportunity to scale up and grow business with

Source
remaining recoverable resources

Selan Exploration Technology Limited Page 3
Corporate Highlights
Impressive Track Record
Proven capability to maximize potential of marginal fields
• 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)
Low Risk Operating

Environment Operating in well explored basin & mature market
• 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
Significant Opportunities
Low risk strategy focused on maximizing recovery from under-exploited resources
• 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.
Strong Financial Position

Consistently delivered high profitability across industry cycles
• 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
Selan Exploration Technology Limited Page 4

Impressive Profit Margin
CUMULATIVE REVENUE, CAPEX, LIFTING COST, PROFIT PETROLEUM
$ MILLION
220
Rev. $193MM
200
180
160
140
120
100 GOVT $12MM

80
LIFT $22MM
60
40
20 CAPEX $74MM
-
Cumulative Capex Cumulative Lifting Cost Cumulative Profits Petroleum Cumulative Revenue
For Indrora, Bakrol, Lohar and Karjisan Fields only
Selan Exploration Technology Limited Page

5
Impressive Profit Margin (Per BOE)
80
70
60
50
40
30
20
10
Capex Lifting Cost Profits Petroleum Revenue
For Indrora, Bakrol, Lohar and Karjisan Fields only

Page 6
Board of Directors
Rohit Kapur Chairman
Mr. Kapur is a graduate of Columbia College (BA) and Columbia Business School (MBA) and is a former General Manager of 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.
Dr. Derek Corbishley Director

Dr. 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.
Tarik Currimbhoy Director

A 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.
S. Bhagwati Dalal Director

Ms. 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.
Manjit Singh Director

Mr. 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
Raman Singh Sidhu Director

Mr Sidhu is a qualified chartered accountant from the Institute of Chartered Accounts 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.
Page 7
Management Team & Key Advisors
Deepak
Rohit Kapur Agrawal
Chairman Sr. Technical Advisor to BoD
Mr. Kapur is a graduate of Columbia College (BA) and Columbia Business Deepak is a post-graduate from University of California,
School (MBA) and is a former General Manager of a Fortune 100 Company for Berkeley and the former Director, Technical and Executive
one of its international subsidiaries. A seasoned entrepreneur with international Committee member at Cairn India Limited. He has held senior
experience, he has played a pivotal role in the growth and evolution of SELAN management positions in major E&P companies globally,
since its inception. including BP and Chevron. He is a recognized expert in
reservoir description and management, asset development and
mega-projects management.
Neeraj Sethi Shiv

President & CEO
Neeraj Sethi, a graduate of IIT Mumbai, is an internationally accomplished
Kapoor Sr. Financial Advisor to BoD
business leader with extensive leadership experience in general management, Shiv is a Fellow of the Institute of Chartered Accountants of
P&L and business development in the upstream Oil and Gas industry. He has a England and Wales and has twenty years of experience in a
proven track record of building and running businesses at a country and regional various financial disciplines including strategic planning,
level. He has held senior leadership positions with leading multinational international tax and compliance. His career spans four
companies such as Baker Hughes, Halliburton and been the COO of a publicly continents where he has worked in Dubai, London, Baku,
listed company (Asian Oilfield Services). He has been awarded 4 patents and Jakarta, Aberdeen and Houston for leading oil and gas
authored 4 SPE papers. companies including Schlumberger and Tansocean.
Manabesh R. N.
Chowdhury Subsurface Manager Mitra Sr. Completions Advisor
Manabesh is an alumni of IIT Mumbai where he completed his Masters in Geo- RN Mitra is a Petroleum Engineering graduate from Indian
exploration & Applied geology. He is an experienced technical professional with School of Mines and has over 3 decades of experience in
extensive experience technical interpretation & integration and in leading operations-completions and engineering in E&P companies
integrated sub-surface and field development teams at leading E & P including, ZADCO, Geo-Enpro, Canoro and ONGC. He is a
companies, including Reliance, Cairn and Petronas. He has 7 international and 3 recognized expert in completions, well-engineering and design
national publications to his name and is an active member of SPE, and AAPG. and operational planning and execution.

Page 8
ASSET OVERVIEW

Page 9
Cambay Basin Overview
 Basin area 59,000 sq. km
 Discovered resources of over 15 Bn. Barrels
 Balance proven reserves of over 750 MMBOE Karjisan
 178 discrete fields with median size 18 sq. km Lohar Indrora
Ognaj
 Multi-Stack Reservoirs - Several producing & Bakrol
prospective layers
 Major Producing Fields Cambay
• Mehasana, Kalol, Ankaleshwar, Gandhar, Sabarmati, Wavel, Gamij,

Nawagam, Viraj, Sanand, Jhalora
 Recent Discoveries Selan’s Fields Gandhar

Major Fields
• Multiple Fields in CB-ONN (RIL, Jay, Sun Petro)
Ankaleshwar
Recent
 Selan Operated Fields Discoveries
• Bakrol, Indrora, Lohar, Ognaj & Karjisan
• PSC Extension process in progress for Bakol, Indrora and Lohar Source

Page 10
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

Page 11
Asset Summary
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
 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
Page 12
Typical Field Facilities

Page 13
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

Page 14
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 MMBOE 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

Page 15
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


Page 16
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
 There is 1 Early Production System in Karjisan Field

Page 17
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

Page 18
Phased Production Enhancement Plan
Karjisan
Indrora
Bakrol
Ognaj
Lohar
Total
Unit
2P Oil In Place MMBOE 60.2 2.5 20.2 3.2 0.3 86.4

Cum. Oil Production MMBOE 2.10 0.70 0.21 0.00 0.00 2.90
PHASED DEVELOPMENT
Oil MMBOE 0.55 0.18 0.11 0.84
Baseline Decline
Gas MMBOE 0.21 0.36 0.57
Oil MMBOE 0.79 0.27 0.26 1.32
Phase-I Enhance Existing Wells
Gas MMBOE 0.32 0.32
Phase-II Bakrol Drilling + Lohar Oil MMBOE 1.80 0.23 2.03
Waterflood 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 1.11
ADDITIONAL MMBOE (OIL + GAS) 3.89 0.41 0.38 0.62 0.00 5.30

Page 19
Asset Status and Prospects
Karjisan
Indrora
Bakrol
Ognaj
Lohar
Total
Resources Unit Oil in
Place Low geological risk
2P Oil In Place MMBOE 60.2 2.5 20.2 3.2 0.3 86.4
• Fields extensively mapped with 3D Seismic and
Cum. HC Production MMBOE 2.1 0.7 0.2 - - 2.9 infill drilling
Cum. Recovery to date % 3.5 28.0 1.0 - - 3.4 • Integrated static & dynamic modeling being
implemented on all the fields
Balance
Lohar
(28%) Reserves Significant oil remaining
Selan Fields • Current recoveries well below industry norm

• Phased target to extract additional 4.2 MM BOE
Indrora
(0.5%)
oil + 1.1 MMBOE gas
• Proven feasibility of production enhancement
Potential Viable un-risked prospects

Upside with low entry barrier
Bakrol (3.4%)
• Upside on existing zones & new targets in Olpad,
Kalol & YCS.
• Oil flowed to surface
• Discoveries in neighboring fields
IEA Report 1997Jean L.
• Low capex with using existing wells for appraisal
Page 20
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
WELL DISTRIBUTION
BASELINE DECLINE (BOE)
16 25
14
20
12
10 15
8
6 10
4
5
2
0 0
0 to 10K 10K to 50K 50K to 100K 100K to 200K
WELL DIST WELL COUNT

Page 21
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
WELL DISTRIBUTION WELL DISTRIBUTION

BASELINE DECLINE (BOE) BASELINE + FULL FIELD (BOE)
16 25
16 25
14
20
12 20
11
10 15
8 15
6 10 6
10
4
5
2 1
5
0 0 0 to 10K 10K to 50K 50K to 100K 100K to 200K
0 to 10K 10K to 50K 50K to 100K 100K to 200K -4 0
WELL DIST WELL COUNT WELL DIST WELL COUNT

Page 22
Indrora – Justification for Future Profile
 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
Eagle Ford Indrora
(YCS) Plays
Reservoir Depth (m) 3500 1500
Reservoir Clay (5-45%) with Clay (5-45%) with
Characteristics carbonate 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 115 30
Production (bbls)

Page 23
LOHAR – Analogous Fields & Successful Execution
Lohar Field Performance
250 100
Oil Rate bopd %wc 90
Battrum East Roseray, Canada
200 80
oIl prodn rate, bopd

70
%water cut
150 60
50
100 40
30
50 20
10
0 0
0
2
4
7
12
20
33
45
58
73
87
100
124
140
165
196
220
248
274
316
357
404
449
499
540
570
597
Cum Oil Produced, Mbbl
SPE 113132 2009, Denis B.

 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

Page 24
KARJISAN HIGHLIGHTS
 KARJISAN OIL UPDATE
Lohar,
Ognaj,
• Established Sustained production on KJ-4 Karjisan
Bakrol,
• Oil delivery started May-2017 Indrora
• Field development plan in progress
 READY TO DELIVER GAS Selan’s Oil Characteristics
• Buyer & sales agreement in place.
• Well deliverability commenced

Page 25
UPSIDE POTENTIAL

Page 26
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
Undeveloped
Undeveloped
Bakrol Indrora
Page 27
Fiscal Terms

Page 28
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

Page 29
Valuation

Page 30
Future – Low Investments, High Return

Page 31
Future Margins – Expected to grow

Page 32
Cash – Massive Cash Generation
Cumulative Cash
(Cash Generation In $ Until 2030)
160
140
120
100
$MILLION
80
60
40
20
Base Phase 1 Phase 2

Page 33
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

Page 34
Selan Valuation – Value of Reserves
Market Cap INR 411.47 crs
Less: Cash on hand INR 120.34 crs
Enterprises Value (EV) INR 291.13 crs
EV in USD USD 44.76 mill
Proved Reserves 5.33 MMBOE
EV per BOE proved reserves USD 8.40 PER BOE
Equivalent International Benchmark EV/BOE USD 20.0 PER BOE
As on 31.03.2018

Page 35
Disclaimer
This material contains forward-looking statements regarding Selan Exploration Technology Ltd, its corporate
and 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 information
available to them at this time. These forward-looking statements are by their nature subject to significant
risks and uncertainties; and actual results, performance and achievements may be materially different from
those expressed in such statements. Factors that may cause actual results, performance or achievements to
differ from expectations include, but are not limited to, regulatory changes, future levels of industry product
supply, demand and pricing, weather and weather related impacts, wars and acts of terrorism, development
and use of technology, acts of competitors and other changes to business conditions. Selan Exploration
Technology Ltd undertakes no obligation to revise any such forward-looking statements to reflect any
changes in Selan Exploration Technology Ltd’s expectations with regard thereto or any change in
circumstances or events after the date hereof. Unless otherwise stated, the reserves and resource numbers
within this document represent the views of Selan Exploration Technology Ltd and do not represent the views
of any other party, including the Government of India, the Directorate General of Hydrocarbons.

Page 36

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