Techno - Commercial Proposal for A

consistent regional interpretation of

Lithostratigraphy-structural setup and

Identification of Hydrocarbon Seeps in

Lake Malawi Region and their

significance in exploration Context

Submitted to

RAKGAS LLC, Ras-Al-Khaimah

Apex Spatial Tech Solutions Private Limited

N a g p u r | J a i p u r | K a m p a l a

Techno - Commercial Proposal for A

consistent regional interpretation of

Lithostratigraphy-structural setup and

Identification of Hydrocarbon Seeps in

Lake Malawi Region and their

significance in exploration Context

Submitted to

RAKGAS LLC, Ras-Al-Khaimah

Submitted by

Apex Spatial Tech Solutions Pvt Ltd (APEX) India I Uganda

DOCUMENT CONTROL

Statement of Purpose

The purpose of this document is to express APEX’s interest and offer quality and cost effective services for

RAK GAS’s prestigious project for hydrocarbon exploration in Lake Malawi region. In light of this, Apex

proposes project entitled “Techno - Commercial Proposal for a consistent regional interpretation of

Lithostratigraphy-structural setup and Identification of Hydrocarbon Seeps in Lake Malawi Region

and their significance in exploration Context”. The proposal is in context of the provisions of scientific

research and implementation of the hydrocarbon exploration objectives in Lake Malawi region.

Confidentiality

This proposal is identified as APEX-GMC Confidential Information and should not

be disclosed to third parties or personnel not directly involved in this procurement.

All Rights Reserved.

No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language

in any form by any means without the written permission of Apex Spatial Tech Solutions Pvt Ltd.

While every precaution has been taken in the preparation of this document, APEX assumes no responsibility for errors, omissions, or

for damages resulting from the use of the information contained herein.

Trademarks: Products or corporate names may be trademarks, registered trademarks, or service marks of other companies, and are

used only for the explanation and to the owner’s benefit, without intent to infringe.

Page Intentionally Left Blank

CONTENTS

TECHNICAL PROPOSAL

1.0 About Apex

2.0 Origin of the Proposal

3.0 Proposed Scope of Work

4.0 Materials and Methods

5.0 Apex Team

6.0 Project Timeframe

COMMERCIAL PROPOSAL

1.0 Background

2.0 APEX Best Price Quote

3.0 Our Estimate Include

4.0 Our Estimate Do Not Include

5.0 Main Considerations of Commercial Proposal

6.0 Payment Terms

PART – I

TECHNICAL PROPOSAL

1.0 About APEX Apex Spatial Tech Solutions Private Limited (APEX) is

an ISO 9001:2008 certified company and a Jaipur,

Rajasthan, based GIS solution provider, having an

operational branch office in Nagpur, Maharashtra, a

large number of dependable business associates at

national and international levels. APEX is aiming at

serving the needs of the National and Global Markets

through focused, innovative, efficient and quality

products and services in all areas of Spatial Technology

and Applications, including Geology and Mineral

Exploration. APEX brings horizontal and vertical

integration of Satellite/Aerial Remote Sensing,

Photogrammetry, Topographical Surveys, GPS/DGPS

and Positioning Applications, GIS Databases and

Software Applications & Development and GIS web-

services.

Apex has state of the art infrastructure, viz., Hardware,

Software and Instruments used in executing projects

pertaining to spatial technologies. Apart from this, APEX

draws scientific, technical and infrastructure support

from various technology partners, which enables APEX

to take up GIS, RS, GPS and Photogrammetery

application projects of any magnitude and deliver the

best quality outputs in time and cost effective manner.

APEX to its credentials have completed various projects

for Indian Space Research Organisation (ISRO), Govt of

India, Maharashtra Remote Sensing Applications

Center (MRSAC), Geological Survey of India (GSI),

Reliance Communications, Nagpur Municipal

Corporation (NMC), EICHER, Reliance Info Solutions,

Hindalco, SPIC-SMO, ORBIT SUDAN, HURSHA

MINING UGANDA, STAR MINERAL TANZANIA,

RBSSN for MYANMAR, CP Systems BHUTAN &

Apex is a global provider

of key technical and

commercial services for

exploration, mining and

investment companies.

These services extend

across the entire project

development timeline:

exploration, geological

modeling, mine planning,

equipment supply, due

diligence and other

commercial services.

Apex maintains a

reputation based on the

ability to work to

best international

standards on projects of

all sizes and complexities.

This level of service is

made possible through

the combination of a

highly qualified technical

team with ability to assess

each project’s

commercial viability and

to drive a venture

forward.

Apex growth has been

realised through our

strong relationships built

upon delivering key

technical services on

budget and on time.

APEX

TURKEY, GeoComp AUSTRALIA, Navayuga Engineering Company Limited,

HYDERABAD, Gangakhed Sugar and Energy Ltd, MECON Limited, Gurgaon,

WAPCOS Limited, Bangalore and SANBORN Technology Resource Pvt Ltd, MUMBAI.

APEX has also been awarded with prestigious Rate Contracts by ISRO, Government of

India. APEX has executed Nation Wide GPS Route Survey of Reliance Communications

for more than 20,000 Kilometers and DGPS GCPs Collection (over 400) for 57 cities for

Reliance Infosolutions and an Australian GIS Major and Eicher’s Mapping Project (POI’s

& Streets) on city of Pune for Navigation and Publication Applications. APEX’s MD has

been involved in various national and international projects of government and corporate

sectors including the Country Wide GIS Mapping Project of ISRO, DST, Reliance and

BHARTI Groups. APEX’s MD has been involved in Ras Al Khaimah (RAK’s) GIS

mapping project including the DGPS Control Survey and Monumentation. APEX has

been awarded with the prestigious DGPS Control Survey (a Rate Contract) of ISRO,

Government of India.

2.0 Origin of the Proposal Modern lake basins set within active continental rifts of Cenozoic age provide useful

analogs for exploration efforts in ancient extensional basins that are known to be rich in

hydrocarbons. Lake Malawi is one of the Great Lakes of Africa and is located at the

southern part of the western branch of the East African Rift System (EARS). This large,

eutrophic, and probably geologically ephemeral lake basin serves as an end-member

example of the modern tropical lake systems that occupy this extensional province.

Organic-rich rocks of such lacustrine origin are the dominant source of hydrocarbons in

many oil and gas provinces around the world, and most of the world’s long-lived extant

lakes are affiliated with continental extensional basins. Lacustrine systems situated in the

tropical latitudes commonly contain sediments that are exceptionally rich in organic

matter because of a high biological productivity and, in some cases, prolonged bottom

water anoxia. Accordingly, modern tropical rift lakes are valuable sites for the study of

the formation and concentration of oil and gas, especially because of the discovery of a

considerable quantity of hydrocarbons on the Uganda margin of the Lake Albert Rift.

Secondly, when hydrocarbons in form of liquid escapes from the depth of hydrocarbon

reservoirs, through a week zone of low pressure or flow, popularly known as oil seeps

can be detected and monitored using high special and spectral resolution severely remote

sensing images to predict spill oil location and then build up oil spill distribution map by

using GIS approach for storing, displaying and interrogating large volumes of

information to provide a guide for further exploration and environment impact

assessment. Therefore, an attempt shall be made for Lake Malawi region using integrated

and multidisciplinary approach so as to understand the hydrocarbon potential and

geological significance of this tectonically active southern part of EARS. A consistent

regional interpretation of surface and subsurface geology and oil seep locations may

provide desired geological context and help in guiding further exploration activity.

3.0 Proposed Scope of Work

3.2.1 Develop spatial data and creation of the Base maps using satellite data and

ground based techniques

3.2.2 Develop surface spatial data and creation of the Litho-stratigraphic and

Structural themes using satellite data and ground based techniques

3.2.3 Undertaking specialized ground-based data collection techniques using DGPS,

to ortho-rectify Radar images, create DEM and mapping various geologically

important point locations as from Hydrocarbon exploration point of view

3.2.4 Procurement of Optical and Synthetic Aperture Radar data with stereo capability

3.2.5 Collection / Acquisition of secondary data such as Multichannel Seismic and

Gravity data and any other relevant data from different sources

3.2.6 Interpretation of sub-surface lithostratigraphy and structural setup of Lake Malawi

Rift and establishing correlation with surface geological themes and gravity data

3.2.7 Offshore and Lake Hydrocarbon seeps identification and interpretation of

potential seepage slicks. Each Slick would be assigned a confidence level of

being a seep of natural sign

3.2.8 Establishing seepage relationship with subsurface graben and associated

structures as an account for hydrocarbon migration

3.2.9 Report generation

4.0 Materials and Methods We propose acquisition, interpretation, development and usage of the following datasets

in an integrated manner* –

1. Seismic Reflection Data and processing

2. Gravity data and processing

3. Synthetic Aperture Radar (SAR) imageries

4. Landsat ETM satellite imageries

5. Available Geological Maps and Reports

6. Surface and Sub-surface geological interpretation and mapping

7. Stratigraphic and Facies Analysis

8. Shuttle Radar Topographic Mission (SRTM) Global Elevation 90m data

9. ASTER 30m Digital Elevation Data

10. Trimble R6 Differential Global Positioning System

(* The usage of data is subjected to the availability)

The acquisition of the multichannel seismic (MCS) reflection data would involve several

strike and dip lines at regular interval, covering entire Lake Malawi region. Positioning

would further be verified using two Trimble R6 differential global positioning system

unit with sub-centimeter accuracy. Seismic data processing would involve standard

procedures including spike and predictive deconvolution, bandpass filtering, normal

move-out correction, stack, f-k migration, automatic gain control, and water bottom mute.

The expected outcome would carry analyses of rift structures having a combination of

the offshore seismic reflection data, a reanalysis of existing gravity data augmented with

bathymetric data, and for the onshore areas, Shuttle Radar Topography Mission (SRTM)

90 m Digital Elevation Model (DEM) data.

Gravity data are to be collected in the Lake Malawi graben both onshore and offshore

coving gravity coverage of whole rift valley. The data would be used for (1) delimiting

the basin’s border fault system, (2) estimating basin depth and sedimentary thickness, (3)

determining sediment density, and (4) modelling rift evolution.

Stratigraphic interpretations would be done using seismic data for sequencing the

subsurface stratigraphy and their correlation before and after the fault planes. Also, 3D

structural modelling is proposed using structural observations from seismic reflection

and Shuttle Radar Topography Mission 90 m Digital Elevation Model Data.

Oil seeps in marine and Lake Environment have widespread importance in hydrocarbon

exploration. Oil seep detection and monitoring using multi-temporal high spatial and

spectral resolution satellite imageries may help in predicting spill oil locations.

Furthermore, interrogating and displaying oil spill distribution maps overlayed by large

volumes of information surface and sub-surface geological interpretations using GIS

approach can provide a common picture for the sub-surface hydrocarbon reserves. GIS

and SAR remote sensing can contribute significantly to oil spill identification, and has

been applied effectively in the Caspian Sea and Lake Albert.

5.0 Apex Team

Dr. Preetam Singh Rathore - Chairman and Managing Director

Dr. Rathore is seasoned businessman, has in-depth knowledge of formulating mega

projects, detabase and standard designs, project implementation schema and budgeting.

He has a successful track record of completion of national and international level projects

in Satellite Remote Sensing, GPS Positioning, Photogrammetery, Web Applications &

Networking, LiDAR, Topographical, Geo-Physical, Geo-Technical, HydroGeological

Surveying and Mapping. Making a soft launch in year 2001, apex today has grown into a

full fledged Company, providing high quality earth science solutions under the able

guidance of Dr. Rathore.

Dr. S. D. Pimprikar - Principal Consultant (Geology & Explorations)

Dr. Pimprikar comes with vast experience specifically in gold and diamond. In his

successful career spanning more than 32 years, he has held senior positions such as

Director, Geological Survey of India and Sr Advisor- Essar Minerals, India. He has

diversified experience in mineral exploration, exploration management, and geological

and economic evaluations for a variety of commodities. He has carried out special

thematic mapping, geological investigation and seismic tectonic studies and managed

multi-million dollar exploration programs and conducted numerous due diligence

studies. He has published more the 25 papers in scientific journals and proceeding. He

was awarded the National Mineral award in the year 2005 by the ministry of mines,

government of India for his exceptional services in the field of environmental Geology.

He is also a fellow member of the Geological Society of India and a member

of SAAEG.

Geetha Ranganathan, Principal Consultant (GeoSystems)

Mrs. Geetha is Specialist in Database Management , Statistical & Geostatistical techniques

in evaluation of mineral deposit parameters, Resource / Reserve estimation as per UNFC,

JORC standards using a wide range of industry standard mining software. She possesses

excellent working knowledge & rich experience of over 20 years in the application and

usage of mining softwares - GDM (BRGM , France) , MINEX , SURPAC, ROCKWORKS,

Autocad Map , GINO-F (Bradley Associates , UK) for developing 3D Orebody Models

and Resource / Reserve estimation of mineral deposits. She has brilliant track record in

Geological Resource modeling which includes Database Validation & Audit, Verification

of integrity of database information, validation of drillhole data and geological

classifications. Interpretation of statistical models, Construction of Geological/Ore body

Models, generation of geologically consistent wireframe models, Geostatistical

evaluation, Reporting Resources/Reserves She Possess a rich experience of more than 35

years of working in Mineral Exploration Corporation Ltd., a leading premiere exploration

& Mini Ratna Public Sector company under Ministry of Mines, India in a senior position

heading the Information Technology Centre. During the tenure of her service , a

significant

contribution was made in establishing the State-of-the-art I.T center in providing

total cost effective & quality solutions in Exploration Data Management , Geological

Modeling , Geostatistical evaluation ,Resource Estimation with the use of advance mining

software. Successfully implemented the modern use of I.T techniques in a large number

of exploration projects of Coal , Bauxite , Limestone , Iron ore ,Gold , Copper etc.

conducted by MECL for leading agencies like CMPDIL , NTPC, NMDC , Neyveli Lignite

corporation , UCIL , Ministry of Mines , Tata Steel , BHP Billiton , Australia etc. As a

project in charge, She used advance mining & database software for more than 400

exploration blocks pertaining to Coal, Lignite, bauxite, Gold , Copper, etc. Under transfer

of technology, She worked as a key member in the MECL-BRGM, France collaboration

project on Exploration and Evaluation of Tin-Tungsten, Diamond projects for a period of

four years. Under this project carried out Database Management of exploration in GDM,

Generation of Geological Borehole Plans, Sections, Slice Plans, Statistical analysis,

Variogram modeling , Reserves Evaluation etc. Visited BRGM, FRANCE to work with

experts on Geostatistical Techniques. She has successfully completed the project for

developing Geology & 3d orebody model, Reserve estimation using the advance mining

softwares in almost 15 exploration blocks of Bauxite, Gold, Copper, and Limestone

deposits under the Ministry Of Mines Project. As a Team Leader, She has successfully

implemented large scale project for Developing Lignite Resource Data Management

System (RDBMS) for Neyveli Lignite Corporation Limited under Xth Plan Project.

Prof. Harsh Bhu - Principal Consultant (Geology & Explorations)

Prof. Bhu is achievement oriented and multi-skilled professional with

quality & result-driven research experience of 26 years across functional

sectors of geological R & D. Prof. Bhu has the ability to lead cross-functional project teams

and integrate their efforts to maximize operational efficiency. He has proven expertise in

economic mineral exploration in mobile belts, cratons/ massifs, proterozoic &

phanerozoic basins in the Indian Peninsula and similar geological domains in East Africa.

He possesses keen interest in research activities for metallogeny, sedimentological,

thermo-tectono-metamorphic study of the shadow zone–enclaves within high pressure

domain in precambrian terrain; remobilisation and formation of hydrothermal mineral

deposits. Prof Bhu holds a record of 18 publications in national and international journals

and also edited 5 books. His effective visualization of the geological process linking with

fine tuning of exploration strategy while minimising the financial implication as

Specialised Consultan is key strength for Apex.

Rakesh Vyas (MAusIMM) - Principal Geologist

Rakesh has more than 13 years of experience. He has handled Prospect Mapping,

Resource Discovery and Project Implementation in East Africa as Consultant Geologist

for Gold and associated metals and minerals. Rakesh had earlier worked as Operation-

incharge (Exploration & Mining) for Orbit for Mining Co. Ltd. Khartoum, Sudan for Gold

and Associated Metals and Minerals. He also served as Scientist in Birla Institute of

Technology for 8 years, handled international and national level RS/GIS projects in

various fields including lithostructural mapping, geomorphological mapping, ground

water prospect mapping, and environment impact assessment, decentralized planning,

urban information system, development of village resource centers and related planning.

Rakesh has track record of successfully discovering gold and associated metals and

mineral resources and in exploration database structures and standards design, pre and

post discovery feasibility reports.

6.0 Project Timeframe

Task / Month M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

Project Kick

off

Literature

Review

Data

Procurement

Pre-field

Investigation

Field

Work

Referential

Refinement

Report

Submission

PART – II

FINANCIAL PROPOSAL

1.0 Background Our Financial Proposal is calculated based on the information provided by RAK GAS,

subsequent discussion with Dr Unni and also a lot of assumptions. We have tried our

best and arrived at the most realistic cost estimates as itemized below.

2.0 APEX Best Price Quote

APEX Best Price to Undertake RAKGAS’s Prestigious Project is USD 1.5 M

(In Words: United States Dollar One Point Five Million)

3.0 Our Estimate Include 1. All the Management personnel to perform the work professionally and

competently in India, UAE and Malawi or as per project need in any East African

country.

2. All the scientific and field staff.

3. All the project input data costs, e.g., Satellite datasets, input Geology maps,

existing reports etc.

4. The DGPS equipment, software, accessories, field surveying equipment etc

5. All the computation equipment and software

6. Mobilization of the office and field crew and equipment from the base to the

designated project locations

7. Health Insurances

8. Professional Liability Insurance

9. Food allowances

10. Field Camping facilities (if required)

4.0 Our Estimate Do Not Include 1. Office space in Malawi or East African country, which can be used as a base for

the survey operation

2. Existing Seismic datasets.

3. Field transport for the survey crew

4. Labor camp for the field crew in Malawi

5. All types of Travel (Air and Surface), Hotel Accommodation for the Experts

(minimum 4 star Hotel with reasonable services included in the package)

6. Visa arrangement for the project staffs

7. All the permits and approvals to perform the project/survey work, approvals on

data and procurement of vital input datasets.

8. Local Taxes

5.0 Main Considerations of Commercial Proposal Our proposal includes the specific tasks and duties that we will perform in the office and

in the project field, therefore, the cost break up will be in the following manner:

(A) Mobilization Cost

S. No Description Cost in USD in % Remarks

1 Mobilization of the Resources

15%

Of the total Quoted

Price as mobilization

advance.

(B) Data Procurement and Pre Processing

S. No Description Cost in USD in % Remarks

1 Data Procurement and Pre-

processing

20%

At the time of data procurement from various sources against APEX Invoice.

(C) Data Interpretation and Integration

S. No Description Cost in USD in % Remarks

1

Data interpretation and integration

35%

Upon completion of

data interpretation

and integration, as

per the approved

progress report.

(D) Finalization and Report Submission

S. No Description Cost in USD in % Remarks

1 Field visit, validations, referential

Data refinements, finalization and

report submission

25%

Against the

deliverables

submission by APEX.

(E) Final Acceptance from RAK GAS

S. No Description Cost in USD in % Remarks

1 Final acceptance or as per RAK GAS

Terms

5%

Within 3 months for

our deliverables

submission.

6.0 Payment Terms 1. Our estimations are based on the inputs provided by RAKGAS and also our

experience in working on similar works in the various countries and regions.

2. RAK GAS shall release the Mobilization advance along with the confirmation of

work order.

3. Progressive payments as per the milestones mentioned above. The cutoff date will

be on 29th of each month and the Invoice will be submitted before the 7th of each

month. RAK GAS shall release the payments in (15) days from the date of Invoice

OR as per RAK GAS terms.

4. APEX will submit the progress report and completion of work report together

with the Invoices.

5. The taxes if and as applicable will be extra.

7.0 Primary Contact for this proposal

The following have been nominated as key points of contact for this project.

Contact persons: For any query related to the contractual terms & conditions and/or bid

document, please contact

Dr. Preetam Singh Rathore (Managing Director)

E-mail: preetam@apexspatial.com

Mobile: +91 98290129139,

Landline: +91 712 2240350

For all technical queries, please contact

Rakesh Vyas

Director (Geology & Exploration)

E-mail: rakesh@apexspatial.com

Contact Cell: +91 9461629925

Marketing Queries:

Rajeev Kumar Narayan

Director (Business)

Email: rajeev@apexspatial.com

Contact Cell: UAE: +971559229177

Registered Office Corporate Office Overseas Office

6/324, SFS Mansarovar, Jaipur – 302020 INDIA

J-3, Mangesh Apartments Near Eight Way Square, Laxminagar (East), Nagpur - 440022. INDIA

Suite B-04, Corner House, 2nd Floor, Plot 436-437, Mawanda Road, Kamwokya, P. O. Box 7806 Kampala, UGANDA

www.apexspatial.com

The bottom line of Apex

“Where possible, APEX uses a number of different

valuation methods to increase the voracity of your

results”

END of the Document