G R O U P M E

AssetFactsheet

Block 2A - Kenya

Project Summary

Wajir is the capital of the Wajir County of Kenya. It is situated in the former North Eastern Province,

which contains Block 2A, with highly promising petroleum systems

Essel Group ME (EGME) owns a 60% particicpation interest in the onshore production sharing contract held by Simba Energy Inc. [”Simba”] covering Block 2A in eastern Kenya.

A 2D seismic survey is underway and being carried out by Africa Geophysical Services Ltd. The two specific aims for the seismic survey are to estimate depths and volumes for primary and secondary targets and to pinpoint the optimum locations for drilling. EGME has also acquired a drilling rig, which will be used during the exploration activity on Block 2A.

Project Summary 03

Red Sea

Project Summary

Map 1: Location of Block 2A

Uganda

Ethiopia

Tanzania

SouthSudan

Somalia

Kenya

BLOCK 2A

N

Lamu

Nairobi

Mombasa

Red Sea

Block 2A is a highly promising 7,802km2 prospect in Eastern Kenya. Falling within the confines of Block 2A are sections of two basins which already have proven petroleum systems

Sections of the Mandera and Anza basins fall within the Block 2A license area

The 'string of pearls' extending from Africa Oil's Sala-1 is located 50 kms north-west to the Badada well, which strad-dles the southern boundary of Block 2A, lies on the margins of the Anza Basin. All the signs point to this basin having immense potential.

Geological Highlights 04

The Mandera Basin The Anza Basin

It comprises oAn oil seep known as the Tarbaj which lies just north of Block 2A's boundary is part of the same Mandera Basin which extends into our property. This basin has source rocks of a marine origin in the lower and mid-Jurassic level. Thus, charge and migration of hydrocarbon will not be an issue.

The Mandera Basin is Permo-Triassic to Tertiary in age with a sediment thickness of approximately 10,000 meters towards center of the basin. Potential source rock interval is Permian (rich in TOC), mid-Jurassic Lower Cretaceous and Tertiary (more than 2% TOC) which is similar to the larger Mande-ra-Lughbasin in Ethiopia and Somalia.

Source Rock

WellsOnly four wells have been drilled in the Mandera basin so far with good oil shows encountered at 40-44m in the Tarbaj stratigraphic well drilled by Total.

MANDERABASINANZA

BASIN

Source rocks are reportedly cretaceous shales belonging to Nubian formation with TOC range of 0.5-1%.

Source Rock

WellsIn the Anza basin, Lower Cretaceous structures have been mapped with a potential reservoir thickness of 300m-500m. Source rock is likely to be Lower Cretaceous. The eleven wells drilled in the Anza Basin have encountered oil and gas shows.

Seismic testing is a form of scientific testing that is pri-marily used for two different but related purposes. It is used to predict the occurrence of earthquakes and it is

used to discover natural gas reserves.

An initial FTG survey was carried out in Q2 2014 by Bell Geo-space and showed Block 2A to be an excellent prospect. The FTG indicated ‘pearl trends’ in both basins which a seismic survey would help evaluate further.

In March 2016, Africa Geophysical Services Ltd (“AGS”) was mandated to conduct the seismic survey for EGME, which represented an important preparatory step ahead of a drilling program scheduled for later this year. The 2D seismic survey will identify and evaluate areas with hydrocarbon potential in Block 2A and confirm the previous geophysical studies that have taken place across over the block.

The survey area covers approximately 535 km of seismic line lengths and it extends from Wajir in the south to the eastern and western parts of Block 2A to validate anomalies based on the previous FTG and IPDS surveys.

Preliminary field work for the seismic survey was conducted in April 2016 and the full seismic acquisition began in June 2016. Data interpretation will start from October 2016.

Seismic Testing 06

The potential drilling locations, including depths and the volumes of the primary and secondary targets, will be identified after the data interpreta-

tion has been completed.

Hydrocarbon Seismic Energy Distribution Over Survey Area

Seismic testing utilizes sound waves and sensors to create a three-di-mensional map of an underground area to determine what kinds of mineral resources are available. Vibrations are created using special trucks or detonated explosives. Sensors receive the vibrations and take measurements. This data is fed into complex computer pro-

grams that create maps of the area, to discover what minerals lie be-neath the surface.

Next Phases of Development 08

Next Phases of Development EGME expects to commence the drilling of two conventional wells by Q4 2016. A rotary drilling technique with water-based mud will be used. Further development will be based on the testing results of these wells.

Kenya borders the Indian Ocean to its east and shares boundaries with Tanzania, Uganda, South Sudan, Ethiopia and Somalia. It is a regional hub in terms of financial, transportation and communications infra-

structure in East Africa.

Block 2A is ideally situated within in easy access of two of Kenya’s key transport corridors at Lamu and Mombasa. This enables EGME to minimize transportation costs and take advantage of significant export opportunities. It will be one of the first operational oil field on the eastern coast of Africa, giving EGME an advantage over companies with assets in Nigeria and other West African nations who are currently exporting oil to Asian and South Asian countries.

Wajir, the largest community in Block 2A, lies 400km away from Lamu Port – within the Lamu (“LAPSSET”) corridor and 700km from Kenya’s capital, Nairobi. In addition, the new Kenya/Ethiopian oil pipeline is currently being planned to extend from Lamu port to Adis Ababa.

Currently under construction, the LAPSSET transport and infra-structure project will strengthen Kenya’s position as a gate-way and as a transport and logistics hub in Africa.

The LAPSSET corridor will give Wajir better access to infra-structure and manpower and it will provide transport links with South Sudan, Ethiopia, and Uganda, giving Block 2A access to significant export opportunities across Africa.

Wajir also lies [close to] the Mombasa–Uganda transport corridor that passes through Nairobi and much of the North-ern Rift. The Port of Mombasa, which will form a key part of the supply chain for Block 2A, is the only international seaport in Kenya and the biggest port in East Africa.

Uganda

Tanzania

EthiopiaSouth Sudan

Laps

set C

orri

dor

Lapsset Corridor

Lamu

Malindi

Mombasa

Port of Lamu

Port of Malindi

Port of Mombasa

Dongo-Kundu bypass

Eldoret

Nairobi

Kisumu

Lagos-Mombasa-Highway

To Addis Ababa

To Juba

Jomo KenyattaInt. Airport

Somalia

Geographic Advantage 09

Dubai : 00971 4454 2459

London : 0044 208890 5300

oil and gas could provide Kenya with a unique opportunity to cement the path towards sustainable economic growth and to diversify export earnings and act as a catalyst for infrastruc-tural spending, especially on the transport sector.

Onshore exploration in Kenya is set to thrive this year, partly due to the low cost of finding oil further inland. The Kenyan government is focused on promoting the oil and gas industry and attracting foreign investment. The policy and regulatory framework governing upstream oil and gas activities in Kenya is currently under review to ensure that Kenya has a robust upstream policy and law that encourages growth. The Minis-try of Energy and Petroleum is leading the process, with support from various donor organizations and international experts.

Block 2A is ideally situated within in easy access of two of Kenya’s key transport corridors at Lamu and Mombasa. This enables EGME to minimize transportation costs and take advantage of significant export opportunities. It will be one of the first operational oil field on the eastern coast of Africa, giving EGME an advantage over companies with assets in Nigeria and other West African nations who are currently exporting oil to Asian and South Asian countries.

Wajir, the largest community in Block 2A, lies 400km away from Lamu Port – within the Lamu (“LAPSSET”) corridor and 700km from Kenya’s capital, Nairobi. In addition, the new Kenya/Ethiopian oil pipeline is currently being planned to extend from Lamu port to Adis Ababa.

Oil and Gas in Kenya 10

Indian Ocean

Kenya

Uga

nda

Taipan

Vancil

Vanoil

L1A

L1B

Ethiopia

Taipan & Afren

11B

L2

L3

L4 L13

L6L6

L20

L19Mombasa

Tanzania

12B14T

Som

aliaEGME

Marathon Oil& Africa Oil

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Africa OilTiullow

&Africa Oil

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Africa Oil

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Africa Oil

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Africa Oil

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Suda

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Nairobi

In October 2003, Mr. Goel founded Dish TV, one of India’s first direct-to-home television platforms which now boasts over 20 million subscribers. Four years later he was appointed Executive Director of Zee Entertainment Enterprise Ltd, the Mumbai-listed media and entertainment company, where he was responsible for overseeing content production and marketing. Mr. Goel left the company in 2009 to become Executive Director of E-City Bioscope, the Indian leisure and real estate business. In 2011, Mr. Goel moved to Dubai to oversee Essel Group’s global expansion and to manage the group’s diversification into natural resourc-es. He founded EGME in 2012.

Mr. Goel is also Chairman of Simba Energy Inc., the TSX-V listed oil and gas exploration junior focused on the onshore frontier basins of Africa, and he sits on the company’s Board of Directors.

Gagan Goel Managing Director, Essel Group ME

Mr. Goel is a Director of Essel Group and the founder of EGME. He has more than 13 years experience of buildiingand leading international businesses.

Management 12

He has over 20 years of corporate experience in the natural resources and industrial sectors. Mr. Gupta started his career working for the United Nations Educational, Scientific and Cultural Organisation (UNESCO) in Geneva. In 2000, he joined Jindal Saw Pipes, a leading global manufacturer and supplier of iron and steel pipe products, where he was responsible for business development and for growing the company overseas. He left the company in 2006 and was appointed Executive Director Asia Pacific of Gap Steel, the Dubai based steel company. Two years later he joined Meta Copper, India’s largest manufacturer of copper products, as Executive Director and was responsible for starting various new business activities. Before joining EGME, Mr. Gupta managed a

number of independent mining projects in India.

Mr. Gupta is also the Chief Executive Officer of Simba Energy Inc.

Punkaj Gupta Group Chief Executive, Essel Group ME

Mr. Gupta joined Essel Group in 2012 to oversee the company’s expansioninto the natural resources industryand the eventual establishment of EGME in 2012.

Management 13

EGME estimates daily production level ofup to 40,000 barrels are possible from their

Kenyan project, once fully operational

Block 2A’s proximity to the coast provides both a strategic and cost advantage, and also opens up increased export opportunities to important growth markets such as India, China and Southeast Asia.

The asset is also situated close to the Lapsset and Mombasa corridors, two key regional infrastructure networks that will enable EGME to export to burgeoning markets on the continent, such as South Sudan, Tanzania, Uganda, Somalia and Ethio-pia.

EGME targets assets with near-term production potential and the company aims to become a low-cost leader in the exploration, development and production of diversified natural resources.

The technical team uses advanced technology and end-to-end logistical expertise to improve the efficiency and profitability of EGME's existing operations. This helps to maintain a low cost advantage.

The management team has an average of 28 years of experience across a wide spectrum of natural resources companies.

EGME has a strong financial position and is backed by Essel Group, a global conglomerate with an annual turnover of $20bn and a 40-year history spanning numerous sectors including media, packaging, entertainment, infrastructure, educa-tion and metals.

EGME seeks to support local communities by creating opportunities for educational and economic advancement, foster-ing a sustainable environment for further development.

WHY EGME?

Low-cost Leader

Highly Skilled Management Team

Advanced Technology

Logistical Efficiency

Backed byLarge Conglomerate

Sustainable Environment

Why EGME ? 14

AboutEssel Group ME is wholly owned by Essel Group, the Indian

multinational conglomerate operating in a broad spectrum

of industries including media, packaging, infrastructure and

technology. Building on Essel Group’s 90 year history of

developing and promoting businesses, EGME is leading

the expansion of the Group’s presence in Europe, the

Middle East and Africa. EGME operates subsidiary business-

es in the natural resources, industrial supply and logistics,

and education sectors.

G R O U P M E

Dubai : 00971 4454 2459

London : 0044 208890 5300contact@esselgroupme.com www.esselgroupme.com

UK

3rd Floor, Axiom House,

The Centre, Feltham,

Middlesex, London TW13 4AU

UAE

207 & 401, Zee Tower,

Dubai Media City,

Dubai – 500484

KENYA

Wajir Hilton Palace

Hotel Next to airport gate,

Po. Box 522. Wajir, Kenya

KENYA

4th Floor Krishna Center,

Woodvale,Grove Street,

Westlands Nairobi, Kenya

/esselgroupme

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