Oil India (USA), Inc. The Atrium at Sugar Creek, 101 Southwestern Blvd., Suite # 136, Sugar Land, Texas 77478

Ref: OILUSA/GC/693/2017 Date: 10th November, 2017

D (HR&BD) / D (O) / D (E&D) / D (F) / CMD

Through: CGM (BD)

Sub: Monthly report of Oil India (USA), Inc. for the month of October, 2017

1. Reference above please find attached the monthly report for the month of October 2017,

pertaining to Oil India (USA), Inc.

2. For your information and record please.

(G. K. Sharma)

Country Manager

Attached: Detailed Report

OIL USA’s Monthly Report, October 2017

1.0 Shale drillers to torment OPEC into next decade (Source: Joe Carroll, Bloomberg, 8th Nov’17)

OPEC sees no respite from shale’s onslaught before the second half of the next decade.

Until then, they will stick with the one weapon it still has to prevent another oil price collapse:

austerity.

Although the group’s historic output limits have fueled a 42 percent price rally since late June,

OPEC Secretary-General Mohammad Barkindo on Tuesday (7.11.2017) signaled the

producers’ determination to stay the course through the end of 2018. The bogeyman

haunting the Saudis, Russians and other major suppliers: U.S. shale, which shows no signs

of backing off until at least 2025.

Even as American drillers embrace the new religion of profits-over-production, OPEC’s latest

long-term forecast focused on the ability of shale explorers to thrive regardless of prices,

thanks to advances in guiding drill bits and fracking. The U.S. rig fleet may be shrinking, but

production isn’t. It’s risen 8.9 percent since 2016.

“The Saudis are finally recognizing they can’t kill the shale guys,” said Bernard Weinstein,

associate director of the Maguire Energy Institute at Southern Methodist University. “It’s a

brave, new world in the oil market.”

The Organization of Petroleum Exporting Countries surprised investors on Tuesday by

boosting its long-term estimate for growth in North American shale production by 56 percent

from a year earlier. The 12-nation group now expects output from the continent’s shale wells

-- which weren’t even a blip on worldwide markets a decade ago -- to reach 7.5 million barrels

a day in four years.

OPEC singled out the Permian Basin of West Texas and New Mexico as a stand-out

performer. Investors pouring billions into the region include Exxon Mobil Corp., Chevron

Corp. and Occidental Petroleum Corp., all of whom have shifted substantial resources and

staff away from less profitable overseas projects.

2.0 U.S. petroleum exports, led by Texas, hit record levels

The Texas Gulf Coast is leading the way as the nation ships record levels of crude oil and

petroleum products to foreign markets, including China, which is buying more American oil

as its economy expands.

The United States is routinely exporting more than 1 million barrels of oil and 6 million barrels

of petroleum products a day, the U.S. Energy Department said in the recent report released

on 8.11.2017.

No matter what the Organization of the Petroleum Exporting Countries does to try to offset

American oil growth, increasingly efficiently U.S. producers are likely to keep growing their

share of the global market. Just this week, Continental Resources, an Oklahoma exploration

and production company, said it's piping more than 1 million barrels of Bakken shale oil from

North Dakota down to Texas ports to export to China.

"Houston is the world's energy gateway, and increasingly the flow of oil and refined products

is out, not in," Bellamy said. "The announcement from Continental - Bakken crude flowing to

China - tells you all you need to know about U.S. competitiveness."

China is now the second biggest foreign market, behind Canada, for U.S. oil, according to

the Energy Department. China imports 163,000 barrels of American oil a day, the Energy

Department said Wednesday.

The vast majority of the crude exports are shipped from Corpus Christi and Houston-area

ports. Since Congress lifted the nation's decades-old ban on oil exports, foreign sales have

surged from about 500,000 barrels a day last year up to about 1 million this year. Over the

past week, crude exports averaged about 1.8 million barrels a day, just under the record 2

million barrels a day in early October.

A slew of pipeline projects are underway to transport more oil from West Texas' booming

Permian Basin to Houston and Corpus Christi hubs. The volume of U.S. crude exports should

rise to 3 million a day by 2025, according projections by the research firm to IHS Markit.

3.0 OIL USA’s Niobrara JV at a Glance

Oil India Limited (OIL) acquired 20% interest in Carrizo Oil & Gas Inc. (Carrizo) shale assets

in Niobrara play of the Denver–Julesburg (D-J) Basin in Colorado, USA. The Purchase and

Participation Agreement (PPA) with Carrizo was signed on 4th October, 2012 and the

acquisition became effective from 1st October, 2012.

Oil India (USA), Inc. was formed as a Subsidiary of Oil India Ltd. and registered in Texas,

US.

Subsidiary office in Houston started functioning from July, 2013.

Total net acreage under OIL USA in Niobrara JV, Colorado is about 11,500 net acres.

There are four partners in this Asset (including Carrizo and OIL) and their working interests

(WI) are: Carrizo - 60%, OIL - 20%, IOCL - 10% and Haimo Oil

& Gas LLC - 10%.

Oil percentage is around 78%, other produce are Gas & NGL.

Niobrara formation consists of three chalk (reservoir) zones,

A, B, and C with inter-bedded marls and shale that serve as

the source rock for the reservoir zones.

Popularly referred as Niobrara A, B, and C benches.

B bench depth ranges from 5,000 ft. to 7,000 ft.

B bench is the main target zone and thickness varies from 85-

115 ft.

This brittle chalk is highly fractured in some areas.

Developed using horizontal drilling technology & by multistage

hydraulic fracturing.

The average lateral length is 4500’ (1370m). The wells are

completed with 3 stage casings and average frac stages: 15 stages per well.

Initially, during 2010-11, drilling was completed within 15-17 days. Presently, the same well

has been drilled within 8-9 days.

Niobrara Shale formation is situated in NE Colorado and parts of Kansas, Wyoming and

Nebraska.

Age: Late Cretaceous.

Organic matter is Type –II kerogen

Lithology: Interbedded calcareous shale, shaly limestone, chalk and marls.

Fine grained nature results in little porosity and permeability.

Production dependent on fractures (both natural and induced).

TOC ranges from 1.5 - 10%

Median Porosity: 7% - 12%, Permeability: 0.1 - 3 mD.

4.0 Operational Details of Niobrara JV:

Carrizo Gross Oil production for the Niobrara JV

The Gross Oil production in the month of October 2017 was 57,139.1 Bbls which is 3% less than the

production in the month of September 2017.

Carrizo Gross Gas production for the Niobrara JV

The Gross Gas production in the month of October 2017 was 195,524.8 Mcf which is 2.4% less than

the production in the month of September 2017.

The Subsidiary (OIL USA) production share of Oil in WI/NRI (Working Interest/Net Revenue

Interest)

OIL USA total oil production in the month of October 2017 was 6,402.3 Bbls (WI) / 5,121.8 Bbls

(NRI), which is 2.0% less than the production in the month of September 2017.

The Subsidiary (OIL USA) production share of Gas in WI/NRI

OIL USA total gas production in the month of October 2017 was 22.1 MMcf (WI) / 17.7 MMcf (NRI),

which is 2.0% less than the production in the month of September 2017.

The Subsidiary (OIL USA) production in terms of BOE/day (WI/NRI)

OIL USA production in BOE for the month of October 2017 was 10,088.6 BOE (WI) / 8,070.9 BOE

(NRI), which is 2.0% less than the production in the month of September 2017.

Monthly production of Noble Energy (OIL USA’s WI share):

Since production data of Noble Energy is available till August 2017 in COGCC, looking at the

production trend, it could safely be presumed that the production share of OIL USA for the

month of September & October’17 would be closed to 800 Bbl (WI) for Oil and 2000 Mcf (WI)

for gas.

0

500

1000

1500

2000

2500

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17

OIL - Bbl 996 829 929 882 945 887 897 768

Gas-Mcf 2338 2135 2278 2227 2256 2156 2189 2048

OIL USA's share of Noble production WI

Monthly production of Whiting Oil & Gas (OIL USA’s WI share)

Since production data of Whiting is available till August 2017 in COGCC, looking at the

production trend, it could safely be presumed that the production share of OIL USA for the

month of September & October’17 would be closed to 600 Bbl (WI) for Oil and 3000 Mcf (WI)

for gas.

5.0 Revenue and Accounts (Status as on 30th October, 2017)

The monthly JIBs and net revenue earning from April 2015 to July Sep 2017 is given as follows:

0

1000

2000

3000

4000

5000

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17

Axi

s Ti

tle

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17

Oil Bbl 1429 1223 1279 1122 952 820 586 608

Gas - Mcf 4613 4058 4391 3875 3567 3402 3146 3070

Whiting production WI

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

Dec

-15

Jan

-16

Feb

-16

Mar

-16

Ap

r-1

6

May

-16

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

Dec

-16

Jan

-17

Feb

-17

Mar

-17

Ap

r-1

7

May

-17

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Monthly Revenue vis-á-vis JIB

Monthly JIB Monthly Revenue

i) The total amount paid on Cash calls, JIBs to operators & non-operator partners till October,

2017 is US$ 91.8 Million. The break-up is as given follows:

Cash Calls & JIBS to Carrizo - US$ 73.8 Million.

Noble Energy JIB - US$ 7.7 Million.

Whiting Oil & Gas JIB- US$ 10.3 Million.

ii) Total revenue received by Subsidiary till October, 2017 is US$ 56.5 Million (cash receipt after

Severance Tax), which is about 61.5% of total amount paid against Cash Calls and JIBs and

recovered within 5 years. The break-up of revenue received from various operators are as

follows:

Carrizo - US$ 47.5 Million.

Noble Energy - US$ 5.2 Million.

Whiting Oil & Gas - US$ 3.8 Million.

iii) Total reinvestment in the JV from revenue generated by Subsidiary till the month of October,

2017 is about US$ 46.7 Million.

iv) Acreage sale by OIL USA is US$ 0.7 Million.

v) Total Acquisition Cost till date is US$ 66.05 Million, the break-up of which are as follows –

Niobrara JV Initial Acquisition Cost - US$ 55.00 Million

Subsequent AMI Acquisition Cost - US$ 11.05 Million

vi) Additionally, OIL USA has incurred US$ 3.02 Million on payment of interest on Bank Loan, US$

1.15 Million on General & Administrative Expenses, US$ 2.10 Million for employee benefits,

additional Severance Tax of US$ 0.302 Million and Interest paid to parent company US$ 0.21

Million, till October, 2017.

vii) Share Capital is US$ 111.10 Million. The short term credit line has been paid off in the month

of March, 2017.

6.0 October Events Diary:

5th Annual General Meeting of OIL USA

The 5th Annual General Meeting of Shareholders and Annual Meeting of Directors of Oil India

(USA), Inc., were held on 19th October, 2017 at Houston, Texas. Mr. Utpal Bora, CMD, Oil

India Limited and Mrs. R.S. Borah, Director (Finance), Oil India Limited attended the Annual

Meetings. Representatives from legal, accounting, taxation and statutory audit firms were

also present in the said meetings.

In the year 2012, Oil India Limited started its E&P business in USA by acquiring 20% interest

in an unconventional oil & gas asset in Denver-Julesburg (DJ) Basin, Colorado, from a

Houston-based energy company named M/S Carrizo Oil & Gas, Inc. Oil India (USA), Inc. is

a Texas registered company and a wholly owned subsidiary of Oil India Limited.

Few Moments of the Annual Meetings of Oil India (USA), Inc. at Houston, Texas:

Seen in the pictures - Mr. Utpal Bora, CMD, OIL and Mrs. R. S. Borah, Director (Finance), OIL along

with Mr. G. K. Sharma, Country Manager and Mr. U. K. Sarma, Secretary & Treasurer of OIL USA

Also present - Mr. N. W. Stone of M/s. Thompson & Knight (Legal Consultant); Ms. M. W. Pederson, M/s. FSSK (Accounting Firm); Mr. B. Baumler, Mr. G Voth & Mr. D. Travis of M/s. PKF of Texas PC (Tax & Statutory Audit Firm).

Meeting with Director, National Carbon Capture Center (NCCC), US Department of Energy

Shri Utpal Bora, CMD, OIL Meets Mr. Frank C. Morton, Director -Technology Development,

National Carbon Capture Center (NCCC), USA

During his recent visit to Houston, Mr. Utpal Bora (CMD- Oil India Limited), had a discussion

with Mr. Frank C. Morton, Director -Technology Development, National Carbon Capture

Center (NCCC), USA, run by the U.S. Department of Energy (DOE), on possible

collaboration in Carbon Capture R&D and applicability of CO2 - EOR in Assam oil fields.

NCCC has vast experience in carbon capture technology and partnered with world’s leading

companies. The proposed collaboration has the potential to evaluate and analyze OIL’s

nearby carbon sources. ONGC is also likely to join in this collaborative effort initiated by OIL.

Incidentally, OIL has a MoU with university of Houston (UH) to collaborate in CO2 -EOR and

recently NCCC has also signed a MoU with UH to cooperate on carbon capture and EOR

evaluation to help OIL in implementing in its oil fields.

Photo: (From left) Mr. Frank C. Morton, Mr. Utpal Bora & Mr. Gautam Sharma during the discussion

at Houston on 18th October, 2017.

CMD and Director (Finance), Oil India Ltd. visited University of Houston

“On 20th October 2017, OIL’s CMD Mr. Utpal Bora and Director (Finance) Mrs. R. S. Borah

visited University of Houston (UH) to interact with UH team in connection with ongoing

collaborative study with Oil India Ltd.

The project has been led by Dr. Ganesh Thakur, who was recruited by UH in 2016 as Director

of Energy Industrial Partnerships. A member of the US National Academy of Engineering,

2012 President SPE and former Vice President & Global Advisor at Chevron Corporation,

Dr. Thakur also serves as Distinguished Professor of Petroleum Engineering in UH.

During Phase-2, Dr. Thakur’s team from UH will help Oil India to identify a suitable

reservoir/oil field to implement CO2-EOR (Enhanced Oil Recovery) through a pilot project to

determine viability of such kind of project. It is worthwhile to mention here that if successful,

this will be first of its kind in India with regards to CO2-EOR implementation for production

enhancement from a matured oil field. In US, CO2-EOR has been established as a proven

technology and can conservatively be expected to produce an incremental 10% of the

original oil the reservoir contained when it was discovered.

The Phase -2 study includes – (1) Management & Production Optimization of Makum – North

Hapjan Field; (2) Revitalization of Jorajan Field; (3) Implementation of CO2 – EOR Pilot

Project in OIL’s key reservoirs; (4) Screening of Reservoirs for EOR program Implementation,

Lab Facility upgradation & skill development of CoEES, Guwahati.

From left: Dr. Ganesh Thakur; Mrs. R. S. Borah, Director (Finance); Mr. Utpal Bora, CMD, OIL; Dr. Ramanan Krishnamoorti, Vice Chancellor for Research & Technology Transfer and Chief Energy Officer, UH and Mr. Gautam Sharma, Country Manager, OIL USA.

In collaboration with Indo-American Chambers of Commerce of Greater Houston (IACCGH) and UH, OIL USA has organized visit of two post graduate students from UH to attend internship program at OIL during JulyAugust, 2017. Mr. Bhaskar Jyoti Bhargav has done the internships in OIL’s Eastern Asset on Gas Lift optimizations and Ms. Anisha Deka, at CoEES on prioritization of reservoirs for EOR implementations. In the picture, Mr. Bhaskar is explaining his findings to OIL CMD. This is the first time students from a US University visited OIL under internship program.

UH Team member presenting their initial findings on CO2 – EOR Pilot project,

planned to be implemented in OIL’s oil field.

University of Houston Team

CMD and Director (Finance), OIL met Consul General of India, Houston

On 19th October’17 evening, Dr. Anupam Ray, Consul General of India, Houston organized a

reception in honor of visiting CMD and Director (Finance) of Oil India Ltd., at his Houston residence.

Invitees were - senior executives from Mc Dermott International, National Carbon Capture Center

(NCCC-DOE, Alabama), Carrizo, Schlumberger, ONGC Videsh, etc.

Later in the evening, at Consul General’s residence, an important discussion was held with experts

from WesternGeco, North America on difficulties in seismic imaging due to surface logistics coupled

with complex subsurface geology and also mitigation of drilling challenges in Assam-Arakan Fold

Belt region. Mr. Arindam Bhattacharya, President, Schlumberger Land Rigs was also present in the

discussion.

CMD and Director (Finance) visit to Carrizo Oil & Gas

On 19th October, Mr. Utpal Bora, CMD and Mrs. R. S. Borah, Director (Finance), OIL met Mr. S.P.

“Chip” Johnson, President and Chief Executive Officer (1st from left) and Mr. Gerry Morton, General

Counsel and Vice President of Business Development (2nd from right), Carrizo Oil & Gas at Houston,

and discussed about Carrizo’s future strategy concerning Niobrara JV and investment plan in other

unconventional plays.

Oil India Limited (OIL) acquired 20% interest in Carrizo Oil & Gas Inc. (Carrizo) unconventional asset

in Niobrara play of the Denver–Julesburg (D-J) Basin in the state of Colorado, USA. The Purchase

and Participation Agreement (PPA) with Carrizo was signed on 4th October, 2012 and the acquisition

became effective from 1st October, 2012.

There are four partners in this Asset (including Carrizo and OIL) and their working interests (WI) are:

Carrizo - 60%, OIL - 20%, IOCL - 10% and Haimo Oil & Gas LLC - 10%.

The main producing zone within Niobrara formation consists of brittle chalk, which is highly fractured

in some areas. The play has been developed using horizontal drilling technology & by multistage

hydraulic fracturing.