MIRA INFORM REPORT

Report Date :

23.10.2008

IDENTIFICATION DETAILS

Name :	PRIZE PETROLEUM COMPANY LIMITED
Registered Office :	Jeevan Bharti Building, 11^th Floor, Tower – 1, 124, Connaught Place, Indira Chowk, New Delhi – 110 001
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	28.10.1998
Com. Reg. No.:	55-96845
CIN No.: [Company Identification No.]	U74899DL1998PLC096845
TAN No.: [Tax Deduction & Collection Account No.]	DELP05707C
PAN No.: [Permanent Account No.]	AACCP1395E
Legal Form :	A closely held public limited liability company
Line of Business :	Subject is engaged in exploration and production activities for both onshore and offshore areas in India.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 540000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	The company has been promoted by strong promoters who are petroleum companies as well Indian bank having fine track. Their trade relations are fair. Payments are correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	Jeevan Bharti Building, 11^th Floor, Tower – 1, 124, Connaught Place, Indira Chowk, New Delhi – 110 001, India
Tel. No.:	91-124-2006070 / 2806070
Fax No.:	91-124-2006072 / 2806072
E-Mail :	prizepetroleum@prizepetro.com prizepet@bol.net.in
Corporate Office :	B (504-505), Millenium Plaza, Sectore – 27, Gurgaon – 122 002, Haryana, India

DIRECTORS

Name :	Mr. Zutshi Lal Hira
Designation :	Director
Address :	B-25 Mayfair Gardens, Litte Gibbs Road, Malabar Hills, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	24.05.1942
Date of Appointment :	28.10.1998
Date of Ceasing :	13.09.2000
Name :	Mr. Gupta Dayal Shambhu
Designation :	Director
Address :	11, Sorrento, Mt. Pleasant Road, Malabar Hill, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	10.05.1944
Date of Appointment :	13.09.2000
Date of Ceasing :	14.02.2002
Name :	Mr. Kannan Ramanathan
Designation :	Director
Address :	A1, ICICI Apartments, P Balu Marg, Prabhadevi, Mumbai – 400 025, Maharashtra, India
Date of Birth/Age :	23.09.1947
Date of Appointment :	01.09.2003
Name :	Mr. Kulkarni Pandurang
Designation :	Director
Address :	163, Maninagar Housing Colony, Manjalpur, Vadodara – 380 011, Gujarat, India
Date of Birth/Age :	11.07.1935
Date of Appointment :	25.11.1998
Name :	Mr. Baruah Bujor Jibendra Malla
Designation :	Managing Director
Address :	CW-32, 1^st Floor, Malibu Towne, Personal Floor, Gurgaon- Sohna Road, Haryana, India
Date of Birth/Age :	01.06.1943
Date of Appointment :	22.01.1999
Date of Ceasing :	31.05.2003
Name :	Mr. Ramulu Chigullapalli
Designation :	Director
Address :	6, H P Apartments, 45 Napean Sea Road, Mumbai – 400 036, Maharashtra, India
Date of Birth/Age :	10.01.1948
Date of Appointment :	07.07.1999
Date of Ceasing :	31.01.2008
Name :	Mr. Balakrishnan Arun
Designation :	Director
Address :	A-12 Little Gibbs Road, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	25.07.1950
Date of Appointment :	03.04.2007
Name :	Mr. Nambiar Suvek R
Designation :	Director
Address :	Flat – 502, ICICI Apartments, Near Kirti College, Dadar (West), Mumbai – 400 028, Maharashtra, India
Date of Appointment :	15.01.2002
Date of Ceasing :	15.07.2002
Name :	Mr. Basu Arnab
Designation :	Director
Address :	Flat – 502, ICICI Apartments, Near Kirti College, Dadar (West), Mumbai – 400 028, Maharashtra, India
Date of Birth/Age :	23.03.1967
Date of Appointment :	15.07.2002
Date of Ceasing :	01.09.2003
Name :	Mr. Dhani Sahay Mathur
Designation :	Director
Address :	54, Daisy Lea Mountain Pleasant Road, Malabar Hill, Mumbai – 400 006, Maharashtra, India
Date of Appointment :	29.07.2004
Date of Ceasing :	01.06.2005
Name :	Mr. Major Gen Sudhir Chintamani Nilkanth Jatar
Designation :	Director
Address :	A-102, Neelsadan 1426, Sadashiv Peth, Pune – 411 030, Maharashtra, India
Date of Birth/Age :	03.09.1932
Date of Appointment :	29.07.2004
Name :	Mr. Mahesh Bihari Lal
Designation :	Director
Address :	B-25 Mayfair Gardens, Litte Gibbs Road, Malabar Hills, Mumbai – 400 006, Maharashtra, India
Date of Birth/Age :	12.03.1947
Date of Appointment :	16.07.2005
Date of Ceasing :	31.03.2007
Name :	Mr. Korlimarla Sivarama Prasad
Designation :	Additional Director
Address :	D-2004, Runwal Cenre, Station Road, Deonar, Mumbai – 400 088, Maharashtra, India
Date of Birth/Age :	01.07.1952
Date of Appointment :	27.06.2008

KEY EXECUTIVES

Name :	Mr. Dr. Mithilesh Nandan Prasad
Designation :	Manager
Address :	WW-27, 2^nd Floor, Malibu Towne Personal Floor, Gurgaon-Sohna Road, Haryana, India
Date of Birth/Age :	15.04.1950
Date of Appointment :	30.09.2005
Name :	Mr. Ganguly Rajatesh
Designation :	Secretary
Address :	B-128, Shivalik, First Floor, New Delhi – 110 017, India
Date of Birth/Age :	20.01.1965
Date of Appointment :	10.09.1999
Date of Ceasing :	14.07.2006
Name :	Mr. Umesh Chandra Agrawal
Designation :	Secretary
Address :	158, Sector – 22, Palam Vihar Road, Gurgaon, Haryana, India
Date of Birth/Age :	15.05.1965
Date of Appointment :	13.09.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 27.06.2008)

Names of Shareholders	No. of Shares
Narayana Ranganathan Nallepilly	100
Bhattacharya Satraji	100
Hindustan Petroleum Corporation Limited	9999600
ICICI Limited	1749700
Unit Trust of India (A/c-Veenus) on behalf of ICICI Venture Capital Fund	2000000
Housing Development Finance Corporation Limited	999900
Kannan Ramanathan + ICICI Limited	200
Vedasagar R + ICICI Limited	100
ICICI Bank Limited	5250000
Prasad K S R	100
Gupta S P	100
Kumar Rakesh	100
Total	20000000

Equity shares Breakup (percentage of total equity)

(As on 30.09.2008)

Category	Percentage
Government companies	50.00
Public financial companies	40.00
Venture capital	10.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in exploration and production activities for both onshore and offshore areas in India.

Products :

ITC Code	Product Description
999300	Oil Exploration Projects
503000	Drilling of Wells
11000	Crude Petroleum

GENERAL INFORMATION

Bankers :

· Development Credit Bank Limited

Hansalaya Building, 15, Barakhamba Road, Connaught Place, New Delhi – 110 001, India

· Corporation Bank

SCF 87-88, Huda Shopping Complex, Sector – 14, Gurgaon – 122 001, Haryana, India

Facilities :

Secured Loans	(As on 31.03.2008) Rs. In millions
Term Loan from Development Credit Bank Limited (Secured by hypothecation of Machinery / stock)	52.347
Total	52.347

Unsecured Loans	(As on 31.03.2008) Rs. In millions
Hindustan Petroleum Corporation Limited (Advance against Equity)	150.000
Total	150.000
Grand Total	202.347

Banking Relations :	Satisfactory
Auditors :
Name :	Ford Rhodes Parks and Company Chartered Accountants
Address :	Sai Commercial Building, 312/313, 3^rd Floor, BKS Devshi Marg, Govindi (East), Mumbai – 400 088, Maharashtra, India
Tel. No.:	91-22-67979819 / 67979823
Fax No.:	91-22-67979822
E-Mail :	frptax@vsnl.com
Associates/Subsidiaries :	· Gujarat State Petroleum Corporation Limited · Enpro Finance Limited · Geoglobal Resources (Barbados) Limited · Hydrocarbon Resources Development Private Limited · Aban Loyd Chiles Offshore Limited · Jai Prakash Associates Limited · Valdel Oil and Gas Private Limited · Trenergy, Malaysia · Hindustan Petroleum Corporation Limited · Aban Offshore Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
720000000	Equity Shares	Rs.10/- each	Rs.7200.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000000	Equity Shares	Rs.10/- each	Rs.200.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		200.000	200.000	200.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(92.588)	(71.483)	(71.897)
NETWORTH		107.412	128.517	128.103
LOAN FUNDS
1] Secured Loans		52.347	62.500	0.000
2] Unsecured Loans		150.000	100.000	0.000
TOTAL BORROWING		202.347	162.500	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		309.759	291.017	128.103
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		133.435	116.591	33.528
Capital work-in-progress		96.450	95.069	28.182
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		31.855	20.548	19.968
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	5.630	4.526	14.172
	Sundry Debtors	5.120	5.488	7.594
	Cash & Bank Balances	48.513	37.768	23.272
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	14.073	22.528	12.347
Total Current Assets		73.336	70.310	57.385
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	23.965	10.143	9.910
	Provisions	1.352	1.358	1.207
Total Current Liabilities		25.317	11.501	11.117
Net Current Assets		48.019	58.809	46.268
MISCELLANEOUS EXPENSES		0.000	0.000	0.157
TOTAL		309.759	291.017	128.103

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		10.532	13.477	0.152
Other Income		25.098	30.934	18.885
Total Income		35.630	44.411	19.037
Profit/(Loss) Before Tax		(32.072)	0.216	(14.919)
Provision for Taxation		(10.968)	(0.198)	3.523
Profit/(Loss) After Tax		(21.104)	0.414	(18.442)
Expenditures :
	Salaries, Wages, Bonus, etc.	11.431	8.538	5.469
	Managerial Remuneration	2.188	1.312	1.200
	Payment to Auditors	0.175	0.116	0.051
	Interest	12.479	1.637	0.000
	Insurance Expenses	0.039	0.007	0.030
	Power & Fuel	0.223	0.182	0.074
	Depreciation & Amortization	7.702	3.389	2.081
	Other Expenditure	33.465	29.014	25.051
Total Expenditure		67.702	44.195	33.956

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	(59.23)	0.93	(96.87)
Net Profit Margin (PBT/Sales)	(%)	(304.52)	1.60	(9815.13)
Return on Total Assets (PBT/Total Assets}	(%)	(15.51)	0.12	(16.41)
Return on Investment (ROI) (PBT/Networth)		(0.30)	0.00	(0.12)
Debt Equity Ratio (Total Liability/Networth)		2.12	1.35	0.09
Current Ratio (Current Asset/Current Liability)		2.90	6.11	5.16

LOCAL AGENCY FURTHER INFORMATION

Note

The Registered Office of the Company has been shifted from UCO Bank Building, Sansad Marg, New Delhi – 110 001, India to the present address w.e.f. 01.11.2007.

Form No. 8

Name of the company

PRIZE PETROLEUM COMPANY LIMITED

Presented By

Jointly by Chargeholder and Borrower

1) Date and description of instrument creating the change

· Agreement of Hyp. of Tangible Movable Property dated 07.12.2004.

· Agreement of Hyp. of Tangible Movable Machinery and Plant dated 07.12.2004.

· Agreement of Charge and Hyp. of Book debts dated 07.12.2004.

· Agreement dated 07.12.2004 (Regd. on 28.12.2004).

2) Amount secured by the charge/amount owing on the securities of charge

Nature of Facility	Rs. in Millions
Bill Purchase Limit	9.300
Letter of Credit Limit	15.000
Bank Guarantee Limit	16.000
Total	40.300

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

· First charge by way of hyp. of receivables and stocks of the company.

· First charge by way of hyp. of Plant and machinery both present and future.

· First charge by way of hyp. of all tangible movable property, both present and future.

4) Gist of the terms and conditions and extent and operation of the charge.

Intt. On Cash Credit @ 10% p.a. and Supply Bills purchase limit @ 9% p.a. or at such other rate as may be determined by the Bank from time to time commission or LG/BG : as per Bank rules.

5) Name and Address and description of the person entitled to the charge.

Development Credit Bank Limited

Hansalaya Building, 15, Barakhamba Road, Connaught Place, New Delhi – 110 001, India

6) Date and brief description of instrument modifying the charge

· Agreement of hyp. of Stocks, Book Debts and Machinery dated 26.12.2005

· Agreement of Hyp. of Tangible Movable Machinery and Plant dated 26.12.2005

· Agreement of Hyp. of Book Debts dated 26.12.2005.

· Agreement dated 26.12.2005

· General Counter Guarantee and Indemnity covering seceral Guarantees issued by the Bank within the sanctioned Guarantee Limit (separate for BG-1 and BG-II) dated 26.12.2005.

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The extent of operation of the charge on current as well as fixed assets stands enhanced from Rs.40.300 millions to Rs.122.500 millions due to increase in working capital limits as under :

Nature of Facility	Existing Limit	Modified Limit
Cash Credit (Hyp.)	0.000	10.000
Bill Purchase / Limit	9.300	0.000
Letter of Credit / BG – I Limit*	15.000	62.500
Bank Guarantee / BG-II Limit*	16.000	50.000
Total	40.300	122.500

Full interchangeability between the LC and BG limits.

The enhanced working capital limits of Rs.122.500 millions together with intt., additional intt. Penal interest, liquidated damages, commitment charges, premia on prepayment or on redemption, costs, charges, expenses and other moneys payable by the company to the Bank are secured by:

• First charge by way of hyp. of current assets of the company, both present and future.
• First charge by way of hyp. of equipments/machinery purchased/to be purchased, both present and future.
• First charge by way of hyp. of goods/machinery to be purchased out of the LC.

Interest on CC – At BPLR – 4% presently 9% p.a. Commission on BG – 0.80% p.a., Commission on LC – As per Bank’s norms. Margin : Book Debts – 25%, Cash margin in case of LC/BG – 10%. Repayable on demand.

Other terms and conditions as per Arrangement Letter No. NDL/ADV/2004 dated 11.11.2005.

Corporate identity number of the company	U74899DL1998PLC096845
Name of the company	PRIZE PETROLEUM COMPANY LIMITED
Address of the registered office or of the principal place of business in India of the company	UCO Bank Building, Sansad Marg, New Delhi – 110 001, India
This form is for	Modification of charge
Type of charge	· Book Debts · Movable property (not being pledge)
Particular of charge holder	Development Credit Bank Limited Hansalaya Building, 15, Barakhamba Road, Connaught Place, New Delhi – 110 001, India
Nature of instrument creating charge	· Agreement of Hypothecation of Stocks, Book Debts and Machinery. · General Counter Guarantee and Indemnity covering several guarantees issued by the Bank within the sanctioned Guarantee limit.
Date of instrument Creating the charge	05.10.2006
Amount secured by the charge	Rs.40.300 millions
Brief of the principal terms an conditions and extent and operation of the charge	· Rate of interest Intt. On Cash Credit @ 10% p.a. and supply Bills purchase limit @ 9% p.a. or at such other rate as may be determined by the Bank from time to time. · Terms of repayment Repayable on demand · Margin Margin : Book Debts – 25% and LC/BG – 10% · Extent and operation of the charge Extent and operation of the charge – 100%
Particulars of the property charged	· First charge by way of hyp. of stocks and receivables of the company. · First charge by way of hyp. of plant and machinery, both present and future. · First charge by way of hyp. of all tangible movable property, both present and future.
Particulars of the present modification	The extent of operation of charge on current assets and tangible movable machinery and plant. Stands enhanced due to increase in overall working capital facilities from Rs.122.500 millions to Rs.182.500 millions. Rate of intt. On Cash Credit revised to BPLR – 4.5%, presently 10.25% p.a. subject to change from time to time. Commission on BG : 0.8% p.a. Commission on LC : As per Bank’s norms.

Notes Forming Part of Financial Accounts

1. Contingent Liabilities not provided for :

· Outstanding Guarantees issued by Bankers (*) – Rs.82.708 millions

· Letters of Credit outstanding – Rs. Nil millions .

· The estimated amount of contracts remaining to be executed on Capital Account and not provided for in the Accounts Rs.1.616 millions

(*) Net of back to back guarantees of Joint Venture partner.

2. The Company evaluated a number of opportunities of acquiring stakes in producing Oil and Gas fields awaiting development. Based on above evaluation, the Company has carried forward an amount of Rs. Nil. In its books under Development Expenses. Costs relating to unsuccessful bids amounting to Rs Nil millions have been written off during the year.

3. Joint Venture Operations :

In compliance of Accounting Standard 27 on “Financial reporting of Interest in Joint Ventures” issued by ICAI, a brief description of Production Sharing Contracts (PSCs) and Service Contracts under joint venture entered into by the Company are given below:

· ONGC Onshore Marginal Fields

The Company along with M/s Aban Loyd Chiles Offshore Limited had been awarded on April 28, 2004, Service Contracts for development of ONGC’s onshore oilfields viz. Hirapur, Khambel and West Becharji. The company is the executing contractor and its participating share is 50%.

During the year, M/S Aban Loyd Chiles Offshore Limited has proposed to transfer its entire 50% stake in this joint venture in favour of M/S Valdel Oil and gas Private Limited, Bangalore (VOGPL). The Company has issued No Objection Letter (NOC) dated 13^th July, 2007 in line with provisions of Joint Executing Agreement. The NOC is subject to certain terms and conditions and also subject to approval of M/S ONGC Limited. The Joint Executing Agreements have been signed between the Company and VOGPL on 24^th October, 2007 and a copy of the same has been submitted to M/S ONGC Limited. VOGPL has complied the terms and conditions except approval from M/s ONGC Limited, which is still awaited for.

Out of five wells in Hirapur filed, the Company has capitalized two wells on their successful completion during the last financial year. During the current year, Commercial Production has started from well H# and the total cost amounting to Rs.12.720 millions is capitalized.

In respect of the wells pending completion of commencement of commercial production, all expenses incurred net of the billing raised on test production supplied to ONGC Limited are carried forward as Capital Work in Progress. Unsuccessful work over expenses, if any, are charged off in the year of incurrence.

The Company’s share of assets and liabilities as not 31^st March 2008 and the Income, expenditure for the year in respect of above joint venture is as follows:

Assets	31.03.2008 Rs. In Millions
Gross Fixed Assets	57.602
CWIP	90.502
Current Assets (*)	9.758
Current Liabilities and Provisions	2.948
Income – Revenue from Crude Oil	8.184
Expenditure	18.853

(*) Includes advances to joint venture

· Cambay Exploration Block

The Company had made the necessary application during 2005-06 to the operator for assignment of Company’s entire 15% participating interest in the said Block (CB-ONN-2002-3) in favour of Hindustan Petroleum Corporation Limited (HPCL). The Same has been approved by the Government of India vide DGH letter no. DGH/PSC/CB-ONN -2002/3/AMNDMNT/2007(5) dated 19^th November, 2007.

Sanganpur Field

The Company has acquired 505 share in Sanganpur project of M/s Hydrocarbon Resources Development Company Private Limited (HRD) effective September 1, 2004. Accumulated losses prior to acquisition of Sanganpur Project amounting Rs.11.800 millions have been included in Sanganpur Project Assets. The Company has accounted its proportionate share in the Sanganpur project based on audited accounts of March 31, 2008 made available to the Company by the operator.

The Company’s share of assets and liabilities as at 31^st March 2008 and the Income, expenditure for the year in respect of above joint venture is as follows:

Assets	31.03.2008 Rs. In Millions
Assets	49.775
Current Assets (*)	1.848
Current Liabilities and Provisions	0.423
Income – Revenue from Crude Oil	2.357
Other Income	0.460
Expenditure	2.634

(*) Includes advances to joint venture

As per the terms of the Sanganpur Production Sharing Contract the applicable price for Crude Oil produced and saved from the oilfields is ascertained from Platts Oilgram daily Publication for the previous month. Accordingly the invoices have been raised by the operator at the rates applicable in accordance with the Crude Offtake and sale Agreement (COSA) with the Indian Oil Corporation Limited. The Company is recognizing its participating share in the entire sales of crude oil during the year by the operator.

· ONGC Offshore Marginal Fields (Cluster – 7)

The Company along with Consortium members, M/s Hindustan Petroleum Company Limited (PI – 60%) and M/s Trenergy (PI – 30%) were awarded letter of offer on 31^st March, 2006 for the development of ONGC’s offshore oilfields viz. B-192, B-45 and WO-24. The Service Contract for Cluster – 7 was signed on 27^th September, 2006 between the ONGC Limited and Consortium members. The Company is the executing contractor and its participating share is 10%.

Pending completion od commencement of commercial production, all expenses incurred are carried forward as Capital Work in Progress. Unsuccessful work over expenses, if any. Are charged off in the year of incurrence.

The Company’s share of assets and liabilities as at 31^st March 2008 in respect of above joint venture is as follows:

	31.03.2008 Rs. In Millions
Assets (CWIP)	4.826
Current Assets (*)	2.338
Current Liabilities	1.866

(*) Includes advances to joint venture

· SR-ONN-2004/1 (South Rewa Block):

The Company along with Consortium member M/s Jaiprakash Associates Limited (PI-90%) were awarded a Production Sharing Contract (PSC) for the SR-ONN-2004/1 block vide letter dated 12^th February, 2007 of Ministry of Petroleum and Natural Gas (MOP and NG) under NELP VI. The Company is the executing contractor and its participating share is 10%.

Pending completion of commencement of commercial production, all expenses incurred are carried forward as Capital Work in Progress. Unsuccessful work over expenses are charged off in the year of incurrence.

The Company’s share of assets and liabilities as at 31^st March 2008 in respect of above joint venture is as follows:

	31.03.2008 Rs. In Millions
Fixed Assets	0.005
CWIP	1.122
Current Assets (*)	0.913
Current Liabilities	0.012

(*) Includes advances to joint venture

· Tax deducted at source from interests on Fixed Deposits is Rs.0.320 million

· The Company had availed term loan of Rs.62.500 millions from DCBL under fund-based facilities till 31^st March 2007, repayable in 5 years inclusive of moratorium of 15 months. During the year a sum of Rs.10.200 millions have been paid towards availed loan and outstanding balance as of 31^st March, 2008 is Rs.52.300 millions. The bankers have also issued guarantees totaling to Rs.82.708 millions during the year. The Company has not availed any fund based facility sanctioned from Corporation Bank during the year. The Company has also availed a sum of Rs.100 millions funds from M/s Hindustan Petroleum Corporation Limited towards advance against Equity carrying an interest rate of SBI PLR plus 1% as of 31.03.2007. During the year, the Company has further availed a sum of Rs.50 millions funds from M/s Hindustan Petroleum Corporation Limited towards advance against Equity carrying Nil interest rate. Therefore total outstanding towards advance against equity is Rs.150 millions as of 31^st March, 2008. The accrued interest on advance against equity is not paid in cash and credited to M/s Hindustan Petroleum Corporation Limited account, pending conversion to equity.

· Current liabilities include Rs.0.048 million towards recoveries from employees covered under the vehicle policy as per the scheme of the Company.

Fixed Assets

· Improvement in Leasehold Premises

· Office Equipments

· Computers

· Furniture and Fixtures

· Vehicles

Web Details

Monetization of Marginal fields – a strategic move by ONGC

ONGC Signs Service Contract for Development of Offshore Marginal Fields with Consortium of Prize Petroleum, HPCL and Trenergy.

Oil and Natural Gas Corporation Limited (ONGC) has entered into a service contract for development of three Offshore Marginal Fields with the consortium of Prize Petroleum Company Ltd (Prize), Hindustan Petroleum Corporation Limited (HPCL) and Trenergy (Malaysia).

The contract was signed by Mr.O.P.Pradhan,GM(Corporate Strategy),HPCL and Mr.D.Satija,DGM(MM),ONGC in the presence of Mr. R. S. Sharma, C and MD, ONGC and Mr. M. B. Lal, C and MD, HPCL, here at New Delhi, today. With the signing of the contract, ONGC and consortium partner HPCL, look for more synergy in upcoming opportunities.

Development of Marginal Fields is one of the strategic business pursuits of ONGC, for increasing production by unlocking small pools of discovered hydrocarbon reserves. ONGC has identified 153 Marginal Fields out of which 38 fields have been monetized and 94 fields are under monetization.

The consortium of Prize Petroleum, HPCL, and M3Energy (Trenergy) Bhd, a Malaysian FPSO operator, has been awarded this service contract under an international competitive bid by ONGC for Development of three Offshore Marginal Fields under Cluster-7 (B-192, B-45 and WO-24) in southwest of Mumbai High field of ONGC.

A capital investment of about US$166 million and operational expenditure of US$ 313 million have been planned by the consortium, for the development of all the fields in the cluster. 13 wells are to be drilled during assessment period of three years from two platforms. The envisaged peak oil production is 18865 bopd and gas 0.887 MMm3/day with cumulative oil production of 46.42 MMbbl and gas production of 2.7 BCM.

The participating interest of the consortium partners are 70% and 30% for HPCL-Prize and M3Energy respectively. Prize Petroleum is the consortium leader and is responsible for G and G activities, Log and Seismic interpretations, Reservoir management and Production facilities for the development of the fields. Trenergy will be looking after the production and processing related operations. HPCL will do the project management and related activities.

Fast track development plan as per the modern international practice for offshore marginal fields has been envisaged which will include innovative ideas and advanced drilling methods.

The Project will be completed in two phases:

An initial development phase of three years,

Final development phase till end of field’s economic life.

The development plan will be as per the standard industrial practice and will meet Health, Safety and Environmental standards.

Marginal Fields

Marginal fields have low oil and gas reserves which are economically viable when produced with low capital cost and overheads. This is best possible when outsourced to smaller companies.

With the changing world oil price scenario, innovative technologies and liberal government regulations , the development of marginal fields has assumed importance for increasing production and profit.

A substantial amount of hydrocarbon is locked up in New and Marginal Fields of ONGC, as these fields can not be produced economically on a stand alone basis, or with a conventional approach. The fields are considered marginal as:

They have lesser quantity of in-place hydrocarbons, distributed in several layers,

Their extent is limited,

They are located far from existing infrastructure facilities,

The economics for the development of these fields are marginal.

Outsourcing of Marginal Fields

ONGC has laid strategic emphasis by leveraging technology for development of New and Marginal Fields:

through in-house efforts as well as,

through out-sourcing on service contract.

In September 2002, ONGC decided to outsource the development of Onshore Marginal Fields in phases. In the first phase 18 fields were offered and 46 companies responded for this offer. A data room was opened for these Companies in Mumbai to study the potential of these fields. After studying the data 70 tender documents were purchased by 19 companies.

Outsourcing of Onshore Marginal Fields

In 2004, 8 Onshore Fields were awarded for development through service contract:

Three fields viz. Khambel, West Bechraji, Hirapur were awarded to M/s Prize Petroleum Company Limited and,

Three fields viz. Bihubar, Barsilla, Laxmijan were awarded to M/s Assam Company Limited on 6th February 2004,

Two fields viz. South Patan and Kamboi were awarded to M/s Gujarat State Petroleum Corporation Limited on nomination basis.

The second round of out-sourcing of 17 Onshore Marginal Fields is underway.

Outsourcing of Offshore Fields

In the first round of out sourcing of offshore fields, 19 Offshore Marginal Fields were identified for development through service contract with participation of National and International companies.

A record number of tender documents were purchased by a number of Indian and foreign companies. A total 16 companies including 10 foreign companies from USA, Malaysia, UK, Canada, Hong Kong, Russia purchased 66 tender documents.

Bids were received for two clusters,

After evaluation of bids, Cluster-7 has been awarded to Consortium of M/s Prize Petroleum, M/s HPCL and M/s Trenergy, Malaysia.

ONGC – the Petrojewel of India

Oil and Natural Gas Corporation Limited (ONGC) is India’s Most Valuable Company. It has the distinction of being Asia’s Best Oil and Gas Company.

In the last 50 years, ONGC has discovered 6 of the 7 producing Basins of India. ONGC meets more than 80% of the domestic production of Oil and Gas.

ONGC’s wholly-owned subsidiary ONGC Videsh Limited (OVL) is the biggest Indian multinational, with 24 Oil and Gas properties in 14 countries. It targets to bring in 60 million tonnes of equity oil by 2025.

ONGC is ranked 15th among Global Integrated Oil and Gas Companies by Market Capitalization in PFC Energy 50. It is World's 2nd largest E and P (Exploration and Production) Company; and first in Profits in 3rd Platts EBT Survey (2004).

ONGC is India’s ‘Biggest Wealth Creator’ during 1999-2005, as per objective survey by Motilal Oswal Securities and Trading (MOST) Awards, 2005.

ONGC is placed at the top of all Indian Corporates listed in Forbes Global 2000 (rank 256th) and Financial Times Global 500 (rank 326th). It is ranked 454th in Fortune-500 by turnover and 95th by profits. It is 13th among India’s Most Respected Companies, as per the latest survey of Business World.

Prize Petroleum Company Limited

Subject was promoted as an oil exploration and production company by Hindustan Petroleum Corporation Ltimited (HPCL). Other investors include three major financial institution of India: ICICI limited, HDFC limited and ICICI ventures. Prize Petroleum was constituted by the Cabinet Committee on Economic Affairs’ (CCEA) approval for E and P activities in India and abroad.

Subject has drawn up significant plans for expanding its E and P activities in India and overseas. The objective is to acquire equity oil and gas in India as well as overseas.

The company expects to focus heavily on acquiring equity oil in overseas assets. As part of this, the company has been evaluating option of bidding for several overseas and domestic assets. The company is aiming to focus more on discovered assets than exploration assets. The company has been invited to present bids in Asia, Europe and Australia in recent months. At present, the company has bid for assets in India, Australia, Africa and Europe.

The Government of India’s initiative for promoting Indian companies acquiring equity oil and gas assets overseas will benefit Prize Petroleum significantly in future.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.29
UK Pound	1	Rs.80.40
Euro	1	Rs.63.35

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	-
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		43

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions