“Neft va gaz quduqlarini sinash” Joint-Stock Company 1

“Neft va gaz quduqlarini sinash” JSC practices: oil and gas wells testing and workover; provision of services for: - water well drilling, - well casing and cementing, - horizontal and controlled directional drilling, and - provision of services for drilling muds and cement groutings, - surveying works. “Neft va gaz quduqlarini sinash” JSC 2

123, Mustaqillik street, Kasan town, Qashqadaryo region, zip 180800 Enterprise location Registered address: 123, Mustaqillik street, Kasan town, Qashqadaryo region, zip 180800 “Neft va gaz quduqlarini sinash” JSC

History of the JSC Creation 1965. “The regional geological office for weld testing and casing“ was established 1996. “Neft va qaz quduqlarni sinash” OJSC was established 2014. “Neft va qaz quduqlarni sinash” JSC “Neft va gaz quduqlarini sinash” JSC 4

Information on allotment of shares between “Neft va gaz quduqlarini sinash” JSC shareholders Description Share (in thousand sum) (in thousand USD) (в %) 1 “Uzgeoburneftgaz” JSC 1 020 850,0 399,45 73,87 2 Physical persons 361 100,0 141,29 26,13   TOTAL: 1 381 950,0 488,06 100,0 “Neft va gaz quduqlarini sinash” JSC 5

Human Resources “Neft va gaz quduqlarini sinash” JSC 6

Personnel education and qualification “Neft va gaz quduqlarini sinash” JSC

Manufacturing machines Special-purpose equipment Production facilities Manufacturing machines Special-purpose equipment name quantity А-50 8 Compressor unit 3 АК-60 1 Cementing unit 15 UPA-60 hoisting unit 2 CMN20 7 BA-15 4 Cementing monitoring station АПS Sure Shot others 34 “Neft va gaz quduqlarini sinash” JSC

Raw material resources base No. Material name Supplier 1 Diesel “Uzparta’minot” JSC, “Texnik ta’minlash va butlash” LLP 2 АI-80 gasoline 3 Chemical agents 4 Constructional materials 5 Liquefied gas “Mubarekneftegaz” SUE, “Шshurtanneftgaz” SUE 6 Spare parts, automobile tires and batteries “Siyob Agromash” MTP “Neft va gaz quduqlarini sinash” JSC

Description of services provided Range of Services No Description of services provided Potential customers 1 well testing Enterprises of “Uzbekneftgaz” National Holding Company 2 oil and gas weld overwork 3 water well drilling 4 well casing and cementing 5 provision of services for drilling muds and cement groutings 6 horizontal and controlled directional drilling, and 7 Surveying works “Neft va gaz quduqlarini sinash” JSC

Certificate and Licenses (Attachment No.1) License US No. 1935 dated 02 May 2015 for wholesale trade; for transportation and industrial use of precursors. License PR No. 006709 dated 24 April 2015 “Neft va gaz quduqlarini sinash” JSC 11

Replacement of outdated equipment Promising directions for modernization of “Neft va gaz quduqlarini sinash” JSC Replacement of outdated equipment (hoisting units А-50, АК-60, UPA-60, cementing unit TsА-320, 700, BA-15А etc.) Purchase of mobile drilling rigs (MBU-100, 125) Introduction of new services (oil and gas well drilling with MBU-100, 125mobile drilling rigs) Provision of services for foreign companies on well workover and reconditioning 12 “Neft va gaz quduqlarini sinash” JSC

“Neft va gaz quduqlarini sinash” JSC is the only enterprise in Uzbekistan for oil and gas well testing. And it do not have organizations able to meet competition. “Neft va gaz quduqlarini sinash” JSC

Competitive advantages Competitive deficiencies SWOT - analysis Competitive advantages Competitive deficiencies One of the largest regional bases and extensive network of own divisions Average physical infrastructure in regional grass-root units of the Company Qualified personnel in key positions in the central office and regional offices A shortage of qualified professionals, high turnover of staff in grassroot units Developed rules of services provided and the formed methodological procedures for most traditional types of works and services   Experience in the implementation of all kinds of works and services Lack of experience in the implementation of works and services on the international market Wide range of services 14

Competitive advantages Competitive deficiencies SWOT - analysis Competitive advantages Competitive deficiencies The composition of the company's shareholders and their support Limitations during quick handling of issues related to the Company restructuring Large capital base, high financial stability and reliability Declining liquidity of the investments of the Company Flexibility   The presence of a group of Customers (Clients) with long-term partnership relations with the Company The widespread introduction of modern ICTs into company’s activity 15 “Neft va gaz quduqlarini sinash” JSC

SWOT - analysis Opportunities Threats A significant untapped potential of market of foreign investments The appearance of foreign enterprises on the domestic market Rising incomes of workers and the society Increased inflation (rising prices for services, etc.) The loss of customers due to unfair competition “Neft va gaz quduqlarini sinash” JSC 16

Basic financial indicators of enterprise performance in 2012-2016 in thousand USD No. Indicator description 2012 2013 2014 2015 2016  1 Volume of output 17651,6 22393,8 23624,1 18541,4 17847,3  2 Net sales revenue 14694,4 18026,7 20013,9 17405,6 16868,2 3 Other operating expenses 4467,8 4676,0 5488,1 4317,8 4267,6 4 Profit before tax 380,1 1270,9 321,8 272,1 274,7 5 Net profit 312,9 1020,5 201,1 163,6 170,8 17

Description of indicator Estimated calculations on statutory capital return and earnings per share for 2017-2021 Description of indicator 2017 2018 2019 2020 2021 Statutory capital return 4,00% 4,39% 4,86% 4,90 4,95 Earnings per share (USD) 0,06 0,07 175,4 180,2 “Neft va gaz quduqlarini sinash” JSC 18

Saleable extra share 30,96 % (1 239 433 pcs.) 4 934 910.17 $ АО «Neft va gaz quduqlarini sinash» 19

Description of indicator Planned financial indicators of enterprise performance (USD exchange rate: 1USD = 3208 sum) No. Description of indicator  2017  2018  2019  2020  2021  1 Volume of output 12001,2 12094,8 12219,5 13871,6 14963,0  2 Net sales revenue 468,0 523,7 545,5 561,5 576,2 3 Net profit 277,4 285,2 297,7 358,5 405,2 “Neft va gaz quduqlarini sinash” JSC

In 2017-2021, it is planned to further improve and promote investment activities of the Company by: investment of funds from the sale of the Company’s new-issue shares in financial instruments of large and reliable domestic banks; increasing the amount of work and services; strengthening of monitor and analysis of activities of Customers for whom the Company carried out works and services. The average annual income on invested funds will amount to 25% in 2017-2021. 21 “Neft va gaz quduqlarini sinash” JSC

Contact Infromation: General issues: Deputy CEO Xolmurodov Xayit Toshmurodovish +99891 597 01 10 Acquisition issues: Boboniyazov Sunnatillo Salohiddinovich +99891 597 00 88 Phone/Fax: (0375) 592 25 19, 592 16 78. Company’s website: ngqs.uz E-mail: ngqs@mail.ru 22

Attachment No.1 CEO F.R. Shamsiddinov