1. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 1 Presentation of Final Report – Preliminary Study on Shale Gas Potentiality in Bangladesh Presented by Torsten Gorka DMT GmbH & Co. KG, Essen, Germany 10.06.2015 Dhaka, Bangladesh

2. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 2 Part A: Introduction Background and Context; Purpose and Scope of the Evaluation Part B: Scope of Work Methodology; Data Review; Discussions and Interviews; Limitations Part C: Geological Setting Stratigraphy, Lithology etc. Part D: Data Base Literature descriptions, Borehole data, Geophysical data Part E: Evaluation of Shale Gas Plays Evaluation Parameters; Assessment and GIIP, comparison with plays outside Bangladesh Part F: TOR for future work, Conclusions and Recommendations Results of the study, recommendations, outlook Part G: References and Appendices Formation Tops, Geophysical logs, Well Summaries Contents – Final Report

3. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 3 Part A: Background and Purpose: Shale Gas - Bengal Basin Several conventional gas fields at eastern border Growing population Depleating gas production Energy demand exceeds supply Objective of the Study: Has shale gas a potential?

4. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 4 Part A: Background and Purpose: Shale Gas - Bengal Basin Principle of shale gas extraction Source: http://thewatchers.adorraeli.com/2012/04/18/ uk-will-allow-shale-gas-fracking-despite- earthquake-connections/

5. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 5 Part A: Schedule Work and Reporting 17.09.13

6. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 6 Signing contract:09.06.2013 Inception Report:30.06.2013 Draft Final Report: eight weeks from the commencement of the services (now 17.09.2013) Final Report: two weeks after receiving of HCU’s comments, (now 14.11.2013) End of Project:08.10.2013 Final Presentation:10.12.2013 (Dhaka) Part A: Schedule Work and Reporting

7. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 7 Part B: Scope of Work – Inventory and Review of Data Objectives: Taking stock of information for available description of shale plays Review of existing well logs of selected area Establishing shale gas plays and their lateral extents Establishing thickness and depth of the shale plays Review existing geochemical data of the shale formations (as available) Identify areas where further investigation is necessary TOR for future phases of work, on the basis of Preliminary Study Methodology: Desktop study based on existing data without any field and laboratory work

8. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 8 Part B: Scope of Work – Inventory and Review of Data Regional and General Geological Data Existing reports and publications: stratigraphy, facies developments, regional thickness variations, structural framework, basin development, etc. Recent Study (see TOR) Well Data General Review: number and location; target layers, thickness and parameters measured and analysed Review of existing well logs of selected areas (see TOR) Geophysical Data Seismic data: general review, location, 2D/3D Down-hole geophysical data with reference to target shale layers

9. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 9 Part C: Geological Setting Three main geological provinces 1.Stable Shelf 2.Sylhet and Hatia Trough 3.Chittagong-Tripura Fold Belt BOGMC (1986) & Alam et al. 2003

10. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 10 Part C: Geological Setting Stratigraphic sections for Eastern and Western Bangladesh showing tectonic history, phases and megasequences, and petroleum system elements (Curiale et al. 2002)

11. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 11 Part C: Geological Setting Stratigraphic succession of the Stable Shelf Province Green boxes indicate shale prone intervals. After Alam et al. 2003.

12. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 12 Part C: Geological Setting Stratigraphic Succession of the Sylhet and Hatia Trough Green boxes indicate shale prone intervals. After Alam et al. 2003.

13. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 13 Part C: Geological Setting Stratigraphic Succession of the Chittagong-Tripura Fold Belt Green boxes indicate shale prone intervals. After Alam et al. 2003.

14. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 14 Part C: Geological Setting – Gondwana Group After Islam & Eickhoff 2001 Simplified lithology of the Paharpur Formation in borehole EDH-10 total 95 m shale Simplified lithology of the Kuchma Formation in borehole Kuchma-IX total 135 m shale

15. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 15 Part C: Geological Setting – Tura/Cherra Sandstone Bogra -1 74.5 m shale 93.5 m sandstone shale/sandstone ratio 44% Thickest shale layer 32 m Tura/Cherra Sandstone

16. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 16 Part C: Geological Setting – Kopili Shale Bogra -1 94 m shale 79 m sandstone shale/sandstone ratio 54% Thickest shale layer 36 m Kopili Shale

17. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 17 Part C: Geological Setting – Jenum Shale Jenum Shale, cored interval in Atgram-1X 261 m strongly compacted, dark siltstone and shales with interbedded quartzitic sand layers; at top conglomerates; thin conglomeratic intercalations.

18. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 18 Part C: Geological Setting – Bhuban Formation Depth map at Top Bhuban Formation Data source: Uddin & Lundberg 2004 Thickness map of Bhuban Formation Data source: Uddin & Lundberg 2004

19. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 19 Part C: Geological Setting – Boka Bil Formation Depth map at Top Boka Bil Formation Data source: Uddin & Lundberg 2004 Thickness map of Boka Bil Formation Data source: Uddin & Lundberg 2004

20. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 20 Part D: Data Base – Borehole Data

21. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 21 Part D: Data Base – Borehole Data Formation Tops from Completion Reports

22. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 22 Part D: Data Base – Borehole Data Maturity (R o ) from Geochemical Reports

23. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 23 Part D: Data Base – Borehole Data Total Organic Content (TOC) from Geochemical Reports

24. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 24 Part E: Evaluation Parameters – Establishing the shale plays Parameters Lateral extent and thickness – volume TOC and types of kerogen and HC contained Burial depth and thermal maturity – vitrinite reflectance Seal Structural complexity, fracture systems, stress regime Composition of shale – content of quartz and clay, type of clays control on mechanical properties Water content and composition Gas pressure Porosity and Permeability

25. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 25 Part E: Evaluation Parameters – Establishing the shale plays Stratigraphic units with principle shale gas potential are: Gondwana Group (Kuchma and Paharpur Formations) Jaintia Group (Tura Sandstone and Kopili Shale) Barail Group (Jenum Shale) Surma Group (Bhuban and Boka Bil Formations)

26. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 26 Part E: Evaluation of Shale Plays Gondwana Group 5 – 7.5 ParametersBurial depth Shale Thickness TOC Type of Kerogen (OM) Maturity (vitrinite reflectance) Favourable>1 km < 5 Km> 20 m> 2 wt.%II 0.8 > R 0 < 3.3 % Gondwana Group 0.2 to > 5 km4 m0.9 – 9.9II and III0.89 -1.80

27. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 27 Part E: Evaluation of Shale Plays Tura Sandstone 5 – 7.5 ParametersBurial depth Shale Thickness TOC Type of Kerogen (OM) Maturity (vitrinite reflectance) Favourable>1 km < 5 Km> 20 m> 2 wt.%II 0.8 > R 0 < 3.3 % Tura/Cherra Sandstone 0.2 to > 5 km32 m0.4-4.3III0.43 – 0.47

28. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 28 Part E: Evaluation of Shale Plays Kopili Shale 5 – 7.5 ParametersBurial depth Shale Thickness TOC Type of Kerogen (OM) Maturity (vitrinite reflectance) Favourable> 1 km < 5 Km> 20 m> 2 wt.%II 0.8 > R 0 < 3.3 % Kopili Shale 0.2 to > 5 km36 m0.6-4.7II0.46-0.56

29. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 29 Part E: Evaluation of Shale Plays Jenum Shale 5 – 7.5 ParametersBurial depth Shale Thickness TOC Type of Kerogen (OM) Maturity (vitrinite reflectance) Favourable> 1 km < 5 Km> 20 m> 2 wt.%II 0.8 > R 0 < 3.3 % Jenum Shale 0.2 to > 5 km Not evaluated* 0.8-3.7II0.46-0.56 *no decent log coverage available

30. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 30 Part E: Evaluation of Shale Plays Bhuban Formation 5 – 7.5 ParametersBurial depth Shale Thickness TOC Type of Kerogen (OM) Maturity (vitrinite reflectance) Favourable> 1 km < 5 Km> 20 m> 2 wt.%II 0.8 > R 0 < 3.3 % Bhuban Formation 0.2 to 4 Up to some 100 m 0.2 to 1.7III and (II)0.43 to 0.49

31. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 31 Part E: Evaluation of Shale Plays Boka Bil Formation 5 – 7.5 ParametersBurial depth Shale Thickness TOC Type of Kerogen (OM) Maturity (vitrinite reflectance) Favourable> 1 km < 5 Km> 20 m> 2 wt.%II 0.8 > R 0 < 3.3 % Boka Bil Formation 0.2 to 3.5 Up to some 230 m 0.1 to 0.9III and (II)0.38 to 0.65

32. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 32 Part E: Evaluation of Shale Plays Findings: Low maturity values exclude all Formations of Tertiary Age for being suitable for economic shale gas production in the Bengal Basin -In none of the geochemical samples down to 4877 m (Jenum Shale in Atgram- 1X) favorable maturity values greater than 0.8% have been reached -Geochemical evaluations from several boreholes place the minimum depth for the beginning of gas generation (Ro>0.6%) at depths between 3900 and 4975 m, averaging to some 4000 m -Compiled maturity vs. depth trends indicate that the 0.8% threshold will be reached at depth below 5000 m. These findings are in line with BOGMC 1986. 5 – 7.5

33. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 33 Part E: Evaluation of Shale Plays 5 – 7.5 Tertiary Shales - Depth of gas window in meter below surface Over most areas Tertiary shales are immature for gas generation or buried too deep for economic production

34. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 34 Part E: Evaluation of Shale Plays Maturity vs. depth trends from compiled data

35. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 35 Part E: Evaluation of Shale Plays The Gondwana Group in the stable shelf region has reached favourable maturity but Gamma Ray Log from Kuchma-X1 clearly indicates that the shale content stems from intercalated intervals which do not exceed 4 m in thickness Further restriction may arise from the TOC distribution. Though one maximum TOC value of 9.88% has been recorded, the remaining four samples are in a range of just 1.2 to 1.5%

36. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 36 Part E: Evaluation of Shale Plays 5 – 7.5 Permo-Carboniferous Gondwana Group in favourite depth setting Maturity of Gondwana Group (Islam & Eickhoff 2001)

37. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 37 Part E: Evaluation of Shale Plays Comparison with Plays outside Bangladesh 5 – 7.5 Damodar Valley Basin (East India) Prospective Area 2800 km² (1080 mi²) Early Permian “Barren Measure Shale” -TOC 3%-6% (avg. 3.5%) -75 m marine shale

38. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 38 Part F: TOR, Conclusions and Recommendations Results: In the Tertiary sediments shale intervals > 20 m in thickness may occur in places in the Kopili, Jenum and Tura Sandstone Formation, but they reach maturities at depths > 5000 m, thus being not economic for extraction. The basins of the Gondwana Group have favorable maturity, but contain only thin shale sequences, and TOC is also a critical factor. No valid shale gas plays exist in Bangladesh. However, very limited potential may still exist because -Data review has been restricted to historic data -Recent results of activities, including exploration data from international oil companies, were not available -The potential of large areas are based on interpolation between widely spaced wells and remain untested by drilling

39. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 39 Part F: TOR, Conclusions and Recommendations During exploration for conventional HC deposits detailed studies of source rocks are often not done because sandstone, as a reservoir, was the target. Future improved exploitation technology and economic parameters may make it eventually possible to exploit thin shale units. It is recommended to focus firstly on other targets as namely Coalbed Methane (CBM) from the Gondwana Group. In this context the shale sequences in the Gondwana Group should be studied in detail together with the gas content in order to validate the assessment of this report and achieve a more detailed estimate. The evaluation of the described factors requires comprehensive data collection and thorough analysis to assess the potential of unconventional reservoirs. -2D/3D seismics, microseismics, drilling, well logging, hydrogeology

40. www.dmt.de 10.12.2013 | Bangladesh Shale Gas – Final Report │DMT | Slide 40 DMT Group Reliability in planning, construction and operation Thank you for your attention! I am open for questions. DMT GmbH & Co. KG – Essen, Germany www.corescan.de