1. Project Title GeoPlat PRO software platform to solve E&P problems in hydrocarbon fields Permissible number of symbols – 170 2. Full name of the applicant for preliminary Expertise Boris G. Levin 170 3. Main business area of the project Strategic computer technologies and software 4. Brief description of the project (5 sentences), indicating existing developments and basic goals of project growth The uniqueness of the Project lies in the development of an integrated software platform to address a complete scope of tasks of search for, exploration and 500 development of hydrocarbon deposits. The platform will make it possible to adapt the 3D geologic model to hydrocarbon development environments, which in its turn would allow the subsoil wealth users to significantly save capital and operational expenditures. The integrated platform includes: DV-Geo geologic modeling system, DV-Discovery seismic interpretation system (both are production tested), and PIX-Geo hydrodynamic simulation system (development to be completed soon). 5. Contact person for the project (the person filling out the questionnaire) Boris G. Levin 2000 +7 (499) 720-53-13 [email protected] 6. Describe the problem that the project is intended to solve a. Problem description At the moment, similar products on the geophysical service software market are offered as individual modules providing solutions to a narrow-range of special 4000 problems or as large systems providing integrated solutions by solely foreign software developers. This has led to monopolization (95%) of the Russian market by two largest companies Roxar and Schlumberger and to unreasonably high prices. In this connection, risks of complete loss for the Russian applied geophysical science potential and information safety are extremely high. The foreign software developers are not responsive enough in adapting their software solutions to the requirements and standards of the Russian users. This Application is underlain by a marketing survey completed by O2 Consulting Co on behalf of GDP LLC. The survey estimates the Russian geophysical software market to amount to $170m by 2019. These funds could resolutely contribute to the development of high-end software technology in this country. b. Please provide links to research and materials that support the importance and currency of the indicated problem 1. Market survey of geophysical software for hydrocarbon industry No limitations http://o2consulting.ru/articles/mr-geofiz/ The geophysical services software market was surveyed as a desk study and interviews given by petroleum service experts. The survey provided the following estimates:

1 • shares of petroleum service market key segments • geophysical services software volume on the world market (2008-2013 retrospective and prediction up to 2019) • geophysical services software volume on the Russian market (2008-2013 retrospective and prediction up to 2019) The survey has also undertaken: • analysis of factors and tendencies • analysis of major players on the market • analysis of software sale channels • analysis of principal software consumers • analysis of market barriers The survey results were used to make the software market projection up to 2019. The survey was run by O2 Consulting Co on behalf of GDP LLC. 2. Government decree No 69 of 11 Feb. 2005 On public examination of mineral reserves, geologic, economic and environmental information regarding subsoil areas made available for use, amount and method of payment for such examination http://www.referent.ru/1/102809; The document obligates the subsoil wealth users to run reserve estimation based on 3D modeling. 3. РД 153-39.0-047-00 Regulation regarding creation of standing geotechnical models for hydrocarbon fields. Moscow, RF Ministry of Energy and Fuel, 2000 http://www.norm-load.ru/SNiP/Data1/54/54024/index.htm; 4. Methodology instruction for creation of standing geotechnical models for hydrocarbon fields. Part 1. Geologic models. Part 2. Filtration models. VNIIOENG Institute, 2003, 164, 228. http://www.geokniga.org/books/2662; 5. Laring, G. V., 2010, Efficient computer tools for geologist and geophysicist in the study of a hydrocarbon field: Geofizika (Geophysics) Journal, No 3. http://scilance.com/library/book/26354; 6. Yampolskiy, V. Z., et al, 2006, Analysis of hydrocarbon field 3D-modeling and production optimization software: Tomsk Polytechnic University Proceedings, V. 309, No 7, 50-54 http://cyberleninka.ru/article/n/analiz-programmnogo-obespecheniya-dlya-trehmernogo-modelirovaniya-i-optimizatsii-razrabotki-mestorozhdeniy-nefti- i-gaza; 7. ГОСТ Р (Russian State Standards) Project: Development of gas, gas-condensate, oil-gas and oil-gas-condensate fields. Seismic processing and interpretation software. Principal functional and technical requirements. http://tksneftegaz.ru/standards-development/standard/show/247/ This document signifies high attention the major subsoil wealth users pay to the development of modeling and interpretation software. 7. How does the project solve the described problem and why could the approach be considered innovative The Project combines three basic software systems: 6000  DV-Discovery seismic interpretation system 2  DV-Geo system to run geologic modeling and estimate HC reserves  PIX-Geo system to run hydrodynamic simulation modeling and HC field development and production monitoring Innovationality of this approach consists in the following:  integration of all system modules on a single platform  patented technology for dynamic visualization that can be used at all phases of hydrocarbon deposit interpretation and modeling  unique tool to run sedimentation and paleotectonics analysis on seismic data  data consistency in the modeling process; adaptation to Russian standards and requirements  the basic version of the product has simplified open code with adaptable programming language for developing additional plugins enabling the user to perform his specific tasks  ingenious algorithm to run lithologic modeling based on conceptual HC deposit model  ingenious algorithm for auto correlation of well sections  ingenious algorithm for adaptation of hydrodynamics computation grids in the modeling process  ingenious tools to adapt the geologic model using HC field development and production data 8. Please describe the basic technologies and market trends in the considered market segment a. Description of trends A. Technological trends 4000 1. Development of integrated solutions on the software market A tendency is at present observed to integrate principal directions of data interpretation and modeling along the lines “seismic interpretation – geologic modeling – hydrodynamic simulation”. Such integrated systems are in growing demand owing to the possibility of providing concurrent integrated solutions to more than one geophysical modeling challenges. 2. Technology developments in geophysics and software  development of mathematical principles and 3D modeling for oil and gas reservoirs  developments in the processing and interpretation of 3D seismic exploration, sedimentation analysis and 3D hydrodynamic simulation  advent of powerful supercomputers and workstations allowing complex computations with sufficient speed and display of results 3. Development of software with open source code At the present time, open source code software develops actively. Demand for open source code software rises owing to its accessability, high functionality and possibility to tailor it to solution of specific tasks. OpenTect, GeoTriple for Oil&Gas Exploration, GeoCraft, GI and others exemplify such software platforms. B. Market trends 1. Rising demand for high-quality acquisition and processing of hydrocarbon field data As new technologies of oil and gas production (hydrofrac, slanted and horizontal drilling) are being introduced and hydrocarbon exploration and production environments are getting more and more complicated, and newly discovered fields are being developed, the geophysical service software role is gaining more and more in significance: the demand is rising for high-quality data about hydrocarbon fields and for efficient hardware and software for geophysical services. 3 From 2011 to 2013, the global geophysical service software market rose from $2.7bn to $3.0bn. 2. Rising demand for Russian-made geophysical service software from Russian oil and gas companies because of western sanctions:  ban on export outside Russia of information regarding Russian oil and gas reserves (Russian response to sanctions)  restricted supply and usage possibilities of geologic exploration equipment and technologies for oil and gas industry on the part of USA and EU The share of the Russian-made software to be used by major subsoil wealth user companies, as the latter’s documents indicate, is expected to grow from current 5% to 50%-70% by 2020. 3. Rising demand for hydrocarbon industry services from the countries of North and Latin America, Middle East and Africa, India, China, Vietnam and Australia Development of fields using hydrofrac operations, deep, slanted and horizontal drilling (e.g. in USA and Canada), and active development of offshore fields in a number of countries (e.g. in Brazil) has led in these countries to greater demand for hydrocarbon industry services on the whole and for geophysical service software in particular. Thus, revenue structure in largest transnational hydrocarbon services companies (Schlumberger and Halliburton) shows a tendency of earning greater income share in North and Latin America particularly from shale reservoirs. For the recent 7 years, the petroleum service market volume has risen 120% and made $359bn. 4. Consolidation of assets The world’s petroleum industry services market shows a tendency of asset consolidation – the number of company mergers and acquisitions was growing linearly during 2009-2012 making 40% (167 and 233 respectively). This was due to higher investment activity of petroleum services companies in USA and Canada (about 40% of all deals) and internationally. The acquisition targets include:  companies that have latest technologies  companies that may be conduits to new geographical areas and markets b. Please provide references to relevant market research and materials 1. Marketing survey of geophysical services software for oil and gas industry completed by O2 Consulting Co on behalf of GDP LLC. 2000 http://o2consulting.ru/articles/mr-geofiz/ 2. Gladkov, Ye.A., Geologic modeling and hydrodynamic simulation modeling for oil and gas fields: Manual, Tomsk Polytechnic University http://portal.tpu.ru/SHARED/g/GLADKOVEA/Uchebnaya/Tab4/GLADKOV_3D_MODELING.pdf 3. CGG Co document http://www.cgg.com/data/1/rec_docs/2440_March2013.pdf 4. Chuyev, D.E., 2014, Modern tendencies in HC services market development: PhD Thesis Abstract http://www.mgimo.ru/files2/y01_2014/246572/autoref_chuev..pdf 5. RIAN News Agency, 23.12.2013, World’s oil and gas sector – 2013: US seeks leadership, OPEC gives up http://ria.ru/economy/20131223/985920892.html#ixzz3CHSWuO4h 6. NEO, 12.05.2014, William Engdahl, Washington‘s Shale Boom Going Bust http://journal-neo.org/2014/05/12/washington-s-shale-boom-going-bust/ 7. FinMarket, 13.08.2014, HC reserves data may be banned for export from Russia to US and EU for analysis 4 http://www.finmarket.ru/main/article/3787827 8. TASS News Agency, 11.09.2014, Bloomberg: Sanctions against Russia assume restrictions on hydrocarbon exploration, http://itar-tass.com/ekonomika/1433559 9. TASS News Agency, 05.09.2014, Rosneft may refuse technology imports in long-term outlook http://itar-tass.com/ekonomika/1422831 10. Wikipedia, List of free geophysics software, http://en.wikipedia.org/wiki/List_of_free_geophysics_software c. Provide references, closest to the stated research activities, to Russian and (or) foreign patents whose holders are third persons 1. US4210964 A Dynamic visual display of reservoir simulator results, priority 17.01.1978, inventors William L. Rogers, Paul A. Good, Richard A. Smith, 2000 rightholder Shell Oil Company http://www.google.com.ar/patents/US4210964 2. EP 0516047 A2, Method of and apparatus for processing multi-dimensional data, priority 02.12.1992, inventors Hiroyuki Sekiguchi, Koichi Sano, Tetsuo Yokoyama, rightholder Hitachi, Ltd. http://www.google.com.ar/patents/EP0516047A2?cl=en 3. WO 2013066953 A3, Statistical analysis of combined log data, priority 31.10.2011, inventors Nicholas Heaton, Jack Lavigne, rightholder Schlumberger Holdings Limited https://www.google.com/patents/WO2013066953A3?cl=en 4. WO 2013012967 A8, « Method for determining the thermal physical characteristics of porous materials», priority 13.04.2012, inventors Y. A. Popov, I. O. Bayuk, A.V. Parshin, rightholder Schlumberger Holdings Limited https://www.google.com/patents/WO2013154469A3?cl=en 5. WO 2007089357 A3, Improved analysis and characterization of fault networks, priority 26.10.2005, inventor John W. Neave, rightholder Roxar Software Solutions As https://www.google.com/patents/WO2007089357A3?cl=en 6. US 20140163890 A1, «Method and system for presenting seismic information», priority 06.12.2012, inventor Garrett Leahy, правообладатель Roxar Software Solutions As. https://www.google.com/patents/US20140163890 7. WO 2009015187 A1, 3D visualization, priority 23.07.2007, inventors Vivek Rajan, Dennis Eric Adams, rightholder Fugro Jason Inc. https://www.google.com/patents/WO2009015187A1 8. US 20140156246 A1, System for automated identification of surfaces for building of geologic hydrodynamic model of oil and gas deposit by seismic data, priority 04.12.2012, inventors O. A. Cheskis, S. L. Tregub, A. S. Kazarov, rightholder Rock Flow Dynamics https://www.google.com/patents/US20140156246 9. Describe the basic technology (20 000)

5 The basic technology, aiming to estimate hydrocarbon reserves of reservoir(s) and work out an optimal HC production scheme, consists of three phases: 20000 1. seismic data interpretation (DV-Discovery) 2. building a geotechnical model for the field to develop and produce (DV-Geo) 3. building a hydrodynamic simulation model to specifically determine HC production process (PIX-Geo) The above 3 phases are described in greater detail below: 1. A hydrocarbon reservoir (HC pool) needs to be located, i.e. the presence and shape of a trap must be defined where hydrocarbons may be accumulated, and a network of faults must be identified. This work is possible based on interpretation of 2D/3D seismic and other geophysical data (gravity survey, electric survey, etc.). This phase technology provides for scanning the seismic data, determining the velocity function, correlating seismic horizons and geologic faults, computing and mapping the attributes, inverting the seismic data in order to derive prediction values of geophysical parameters. The resolution at this phase is rather low and insufficient for building a detailed geologic model; therefore, geophysical borehole survey (GBS or well log) data are used to more accurately define the reservoir structure. Seismic interpretation module is used at this phase (http://www.cge.ru/?page=dscvfunc_r) that provides for:  working with seismic data cubes and SEGY profiles  dynamic visualization of data along with producing any type of real-time cross-sections – slices – regular, arbitrary, arbitrarily oriented, “amplitude”, “chair”, “angle”, etc.  working with crooked and composite profiles  working with several data cubes concurrently (time cubes, coherency cubes, sedimentation cubes, acoustic impedance cubes, etc.); the user can load as many as 16 different cubes  comparison of slices from different data cubes and various-version profiles  manual and auto correlation of horizons  generation of isochrone maps along a horizon surface  geologic fault interpretation  generation of attribute maps (dip angle, azimuths, acoustic impedance, average amplitudes)  generation of attribute cubes (instantaneous phases, instantaneous amplitudes, instantaneous frequencies, first-order derivatives, second-order derivatives, etc.)  well data visualization  integrated interpretation of seismic and GBS (well log) data o joint analysis 6 o seismic modeling o plotting correlation dependencies of seismic vs. GBS parameters  plotting well logs as a montage panel  paleo-reconstruction  sedimentation analysis  paleo-tectonics analysis  correlation analysis  seismic inversion o seismic reflectivity inversion to acoustic impedance o stochastic inversion  prediction of geologic parameters using neural networks: o generation of prediction maps o generation of parameter cubes and profiles  post-processing of data cubes and profiles  conversion of data cubes, profiles and interpretation prospects to depth domain  direct two-way interface with geologic modeling module database  generation of image hardcopies 2. GBS data are used to correlate productive horizons of hydrocarbon deposit; then, the deposit is geometrized and its framework is built which is to include tops and bases of strata, and oil-water contacts and gas-fluid contacts. Concurrently, GBS data are interpreted in order to determine reservoir characterization properties of reservoir in wells, and interpretation results are made consistent with the core data. Next, relationships are sought between interpreted GBS data and attribute data derived from seismic interpretation results. A 3D geologic model gridded framework is created and interpreted well log (GBS) data are interpolated to all 3D model gridded cells, with revealed seismic-GBS relationship trends honored. This operation actually consists of two phases: lithologic modeling and petrophysical modeling. The result is a geologic model that is used to subsequently estimate hydrocarbon reserves and to model hydrodynamic simulation process. At this phase, use is made of the geologic modeling software module that includes (http://www.cge.ru/index.php?page=dvgeoproduct_r):  Integrated base of geologic, geophysical and production data with the following capabilities: o standard format well data file import o access to geoscience databases through ODBC o flexible tuning to data import/export formats o import/export of modeling data in software formats supported by leading oil and gas companies o direct two-way interface with seismic interpretation module database o follow-up of project versions 7  visualization tools (1D visualization is plan-views and horizontal slices; 2D visualization is regular and arbitrarily-oriented slices and sections from 3D views; 3D and 4D visualization is a 3D viewing space): o plan-views, regular and arbitrarily-oriented slices, multiple slices, 3D viewing spaces o viewing different type data in one work window and parameter readout o dynamic interlink of work windows and bringing them to a single scale o rotation and change of scale and illumination of objects o data color-coding, and creation of gathers o generation, display and editing of maps, schematics, profiles and geologic-geophysical profile sections  well section correlation to identify geologic markers and to subsequently build a 3D structural model for hydrocarbon deposit (reservoir): o manual correlation with auto picking key markers o auto correlation of long intervals on logs of the same type in adjacent wells o loading correlation results produced in a different software system  structural modeling of oil-bearing strata: o creating a region and optimization of grid parameters for computing reference geologic surfaces o selection and tuning of an algorithm to compute surfaces; use is made of both deterministic and stochastic computation procedures o use of seismic surfaces as trend surfaces o generation of surfaces and maps with faults posted o computation of structure maps in isolines o generation of fluid contact outlines o dynamic analysis of modeling results, and rapid editing of surfaces o surface display parameter control  lithology modeling: o generation of net sand percentage cube o sampled lithology cube generation o generation of NTG ratio cube and continuous-lithology cube o generation and smoothing of net thickness maps o use of lithology modeling algorithm with conceptual model employed  petrophysical modeling: o generation of petrophysical parameter cubes (porosity, permeability and oil saturation o generation of computation parameter maps o generation of cubes of oil saturation parameters o generation of maps showing oil saturation parameters  3D geologic models: 8 o assessing 3D parameter computation accuracy o identification of reservoir zones o averaging the zone parameters o generation of maps in isolines o map correction and back correction of cubes from maps  hydrocarbon reserve estimation o HC reserve estimation by region, zone and prospect with due regard for structural and lithologic specificities of reservoirs o generation and edit of HC reserve density maps o preparation of computation documents  data preparation for hydrodynamic simulation modeling: o creation and visualization of 3D grids for hydrodynamic simulation modeling o grid editing by layers and sections; generation of pinchouts o rescaling the cubes of computation parameters (Upscale procedure) o updating the values in rescaled cube cells o comparative analysis of parameter cubes on geologic and hydrodynamic simulation grids  generation of document hardcopies: o use of ready-made forms o in-built editor of text and graphics o output to printers and plotters of commonly used models o import of Microsoft Word, Excel and Paint Brush texts and tables o export of graphics files to raster and vector formats 3. At the hydrodynamic simulation modeling stage, geologic model and oilfield data are used to create a filtration model of the reservoir At this stage, use is made of the software module for hydrodynamic simulation modeling and HC development and production management; the module includes pre-processor and post-processor to prepare and analyze the data for the hydrodynamic simulator. The hydrodynamic simulator includes:  two- and three-phase filtration model for fluids (non-volatile oil model)  multi-component filtration model (composite model)  non-isothermal filtration model  reservoir physical-chemical stimulation models (polymer flood, surfactant injection, carbon-dioxide gas, etc.)  filtration models in an environment with dual porosity and dual permeability for modeling the processes in fractured-vuggy reservoirs 10. Specify, if available and if they have direct relevance to the project, the Russian and (or) overseas scientific publications, patents and (or) applications for issuing a patent, whose holder (applicant for which) is the Applicant, as well as the developed algorithms, protocols, computer programs and (or) databases, the exclusive rights to which belong to you, or, if they are implemented in the GPL Code open source, the public references to them 9 Number (2000) 1. № 2142162 2. № 2144696 3. № 2128365 4. № 2132085 5. № 2164039 6. № ССГП 01.1.4.012 7. № ССГП 01.1.4.011 8. № 2008616072 9. № 2008616077 Title 1. A method of a object data dynamic visualization, A.S. Kashik, A.L. Fiodorov, S.V. Golosov, G.N. Gogonenkov, V.Z. Garipov, M.V. Perepechkin 2000 2. A method to explore the structure of multidimensional multiparameter and spatial objects represented as multidimensional multiparameter digital data arrays, A.S. Kashik, A.L. Fiodorov, S.V. Golosov, G.N. Gogonenkov, V.Z. Garipov, M.V. Perepechkin 3. A method of object data dynamic visualization, A.S. Kashik, A.L. Fiodorov, S.V. Golosov, G.N. Gogonenkov, V.Z. Garipov, M.V. Perepechkin 4. A method to move objects on the screen using a 2D manipulator of computer mouse type, A.S. Kashik, A.L. Fiodorov, S.V. Golosov, G.N. Gogonenkov, V.Z. Garipov, M.V. Perepechkin 5. A method to analyze dynamic multiparameter processes, A.S. Kashik, A.L. Fiodorov, S.V. Golosov, G.N. Gogonenkov, V.Z. Garipov, M.V. Perepechkin 6. Certificate of Conformance for DV-Geo software system (geologic modeling module) 7. Certificate of Conformance for DV1-Discovery software system (seismic interpretation module) 8. Certificate of State Registration for DV-Geo software system (geologic modeling module) 9. Certificate of State Registration for DV1-Discovery software system (seismic interpretation module) Link (500) 1. http://bankpatentov.ru/node/149238 2. http://bankpatentov.ru/node/328929 3. http://bankpatentov.ru/node/152073 10 4. http://bankpatentov.ru/node/154617 5. http://bankpatentov.ru/node/129882 1. Perepechkin, M.V., I.A. Globenko, 2013, Application of nuclear function method to estimate spatial anisotropy in 2D data and to address mapping challenges in DV-Geo: Ekspozitsiya Neft Gaz (Oil Gas Exposition) Journal, No 2 (in Russian) http://runeft.ru/library/geofis/primenenie_metoda_yadernykh_funktsiy_dlya_otsenki_prostranstvennoy_anizotropii_2_mernykh_dannykh_i_r.htm 2. Bilibin, S.I., M.V. Perepechkin, et al, 2012, Simulation modeling of hydrocarbon reservoir volumes for estimating HC reserves in DV-Geo: Ekspozitsiya Neft Gaz (Oil Gas Exposition) Journal, No 1 (in Russian) http://libed.ru/knigi-nauka/792936-1-1-ekspoziciya-neft-gaz-1-19-fevral-2012-sistemi-1-19-fevral-2012-ekspoziciya-neft-gaz-upravleniya-mo.php 3. Gogonenkov, G.N., A. V. Badalov, et al, 2012, Innovative technology for interpretation of regional and areal 2D seismic surveys: Geofizika (Geophysics) Journal Special Issue, 66-70 (in Russian) 4. Kashik, A.S., G.N. Gogonenkov, et al, 2011, Geologic modeling systems in DV family: DV-Discovery, DV-Geo, DV-SeisGeo: Pribory i sistemy razvedochnoy geofiziki (Geophysical Exploration Tools and Systems) Journal, No 4 (in Russian) 5. Gogonenkov, G.N., Y.V. Kovalevskiy, 2007, DV-Geo, DV-Discovery, DV-SeisGeo – geologic modeling systems developed in Russia: Nedropolzovaniye XXI Vek (Subsoil Wealth Use XXI Century) Journal, No 4 (in Russian) http://www.cge.ru/?page=public_r&god=2007 6. Kovalevskiy, Y.V., et al, 2007, Geologic model refinement by auto correlation of wells: Nedropolzovaniye XXI Vek (Subsoil Wealth Use XXI Century) Journal, No 4 28-31 (in Russian) http://www.cge.ru/?page=dvgeocorr_r 7. Perepechkin, M.V., S.I. Bilibin, 2007, Technologies of using conceptual models in lithology modeling for hydrocarbon reservoirs in DV-Geo: Geoinformatika (Geoinformatics) Journal, No 2007, 9-14 (in Russian) 8. Perepechkin, M.V., 2007, Geologic model building technology from geoscience data in DV-Geo: PhD Thesis http://www.dissercat.com/content/tekhnologiya-postroeniya-geologicheskikh-modelei-po-geologo-geofizicheskim-dannym-v-programm 9. Perepechkin, M.V., 2007, Geologic model building technology from geoscience data in DV-Geo: PhD Thesis http://www.dissercat.com/content/tekhnologiya-postroeniya-geologicheskikh-modelei-po-geologo-geofizicheskim-dannym-v-programm 11. Please describe expected basic directions for commercialization of your project (short- or long-term) Description

11 1. Russian market entry 2000 2. Two-phase international market entry Comment Meetings have been held and respective protocols have been signed with leading Russian subsoil wealth user companies (LOOKoil, Gazprom, Gazprom Neft 2000 and others) to start a corporate testing and beta test of individual software modules as soon as they are ready. 1. Plans are to release ready product and enter the Russian geophysical services market by the end of 2017. By the start of 2020, the company’s software market share in seismic interpretation and geologic modeling is expected to achieve 17-20%, in hydrodynamic simulation modeling 10 %, and by 2025 up to 30%. The product monetization will be done in the following ways:  Software licensing to large Russian oil and gas companies at an average price of about RUR5m a year per ordinary license  Rental/leasing for one corporate license as a package of 50-100 licenses (at an average price of about RUR40-80m a year)  Technical software maintenance/support will make 15-20% of the license value (average price about 1 million Rubles a year; free technical support to corporate license holders)  Client training consisting of a series of seminars (average fee of 120 thousand Rubles for a group of no more than 5-7 trainees) The software license sale is planned to be organized through the following channels:  direct sale to geophysical service companies, to geophysical service departments of oil and gas companies (head offices or engineering centers) and other structures (R&D institutions and so on)  sales to the above institutions through dealers, distributors, partners and other intermediaries  software license sale through participating in tenders 2. Geophysical service software international market entry is planned to proceed in two phases:  early 2018 – market entry in CIS countries (Kazakhstan, Azerbaijan)  early 2019 – market entry in China, India, Vietnam and Latin America countries (Colombia, Venezuela, Brazil, Mexico) The product monetization will proceed in the same manner as on the Russian market:  Software licensing to large oil and gas companies at about $150,000 a year for ordinary license, not inclusive of technical maintenance  Rental/leasing for one corporate license as a package of 50-100 licenses (at an average price of about $1 to $2 million a year)  Technical software maintenance/support will make 15-20% of the license value (average price about $30,000 a year; free technical maintenance/support to corporate license holders)  Client training consisting of a series of seminars (average fee of $3,000 for a group of no more than 5-7 trainees) The software license sale is planned to be organized through the following channels:  direct sale to geophysical service companies, to geophysical service departments of oil and gas companies (head offices or engineering centers) and other structures (R&D institutions and so on)  sales to the above institutions through dealers, distributors, partners and other intermediaries 12. Please list the closest analogues of your solution and describe your competitive advantages 12 Description 1. Company – Schlumberger (1926, USA). Products – GeoFrame, PetroMod, Petrel, ECLIPSE. http://www.slb.com/ 2000 per 2. Company – CGGVeritas (подразделения Fugro-Jason и Hampson-Russell Software & Services 1931, France). Products – EarthModel FT (Fugro-Jason) company and Hampson Russell CE8 (Hampson-Russell). http://www.cggveritas.com/ 3. Company – Paradigm Geophysical (1988, USA). Products – SKUA-GOCAD, GOCAD, SKUA. http://www.pdgm.com/ 4. Company – Roxar (1894, USA). Products – IRAP RMS, TEMPEST, DACQUS, ResVIEW-II. http://www.emerson.com/en-US/Pages/Default.aspx 5. Company – Rock Flow Dynamics (2005, Russia). Product – tNavigator. http://rfdyn.ru/ Description Comparison of similar products is given in tabular form at https://www.dropbox.com/s/ef8s4djwbu78yz5/o2_konkurenti_140922.docx?dl=0 2000 per 1. Schlumberger – an oilfield services company busy modeling geological and geophysical processes, providing solutions to visualization and engineering company challenges, optimizing drilling and production processes, performing economic analysis and risk management. Schlumberger software products enable data interpretation and geologic modeling, hydrodynamic simulation modeling and field development-and-production modeling. GeoPlat project advantages:  lower price (by 20-30%)  integration of all system modules on a single platform, rather than a package of modules as with Schlumberger  higher functionality in base case system  orientation to the Russian user (Russian-language interface, Russian-regulation-compliant generation of documents) 2. Fugro-Jason division develops hydrocarbon field modeling software based on seismic inversion and integration of geologic, petrophysical, geophysical and engineering modules. EarthModel FT – geologic modeling software. Hampson-Russell Software & Services division develops software that encompasses all aspects of seismic survey and all reservoir properties. Hampson Russell CE8 – a software package that covers seismic processing and interpretation, core analysis, building 2D/3D models for reservoirs and fields. Advantages of GeoPlat project:  lower price  integration of all system modules on a single platform rather than a package of modules as with Schlumberger  higher functionality in base case system  orientation to the Russian user (Russian-language interface, Russian-regulation-compliant generation of documents) 3. Paradigm Geophysical – and independent software developer for the world’s petroleum industry. SKUA-GOCAD, GOCAD, SKUA – seismic, geologic and hydrodynamic simulation modeling software. Advantages of GeoPlat project:  lower price

13  integration of all system modules on a single platform rather than a package of modules as with Paradigm Geophysical  higher functionality in base case system  orientation to the Russian user (Russian-language interface, Russian-regulation-compliant generation of documents) 4. Roxar – a software developing company for 3D geologic modeling of HC fields by applying stochastic technologies aimed at prompt monitoring of HC production and multi-phase HC flow measurements. IRAP RMS, TEMPEST, DACQUS, ResVIEW-II – software modules ensuring complete modeling cycle from seismic through to hydrodynamic simulation. Advantages of GeoPlat project:  integration of all system modules on a single platform rather than a package of modules as with Roxar  higher functionality in base case system  orientation to the Russian user (Russian-language interface, Russian-regulation-compliant generation of documents) 5. Rock Flow Dynamics – a Russian company specialized in developing HC field production modeling software. tNavigator – interactive software for hydrodynamic simulation modeling of a reservoir Advantages of GeoPlat project:  availability of seismic interpretation module and geologic modeling module  availability of qualified specialists with much experience A table that compares competitive advantages of the DV-Geo – DV-Discovery line is given in Laring, G. V., 2010, Efficient computer tools for geologist and geophysicist in the study of a hydrocarbon field: Geofizika (Geophysics) Journal, No 3, pp 3-15. Market characteristics (volume, dynamics, links to market research) 1. Schlumberger is a world’s leading supplier of technologies, integrated management of projects and information solutions to the world-wide 2000 per petroleum industry. The company offers widest range of E&P products and services. In 2013, Schlumberger revenue was $45.27 billion. Company’s company personnel counts over 126,000 employees working in over 85 countries. http://www.slb.ru/page.php?code=56 2. CGG-Veritas is a French company with 10 thousand employees engaged in seismic services. The company divisions (Fugro-Jason and Hampson Russell) manufacture petroleum industry software. In 2012, the company’s revenue was $3.4 billion. http://www.cgg.com/default.aspx?cid=6082 3. Paradigm Geophysical is an American company employing over 700 people and having global sales and consultancy network and user support offices in 25 countries. The company develops software for oil and gas industry. http://www.pdgm.com/about/ 4. Emerson is an American company with 132,000 employees and production units and/or commercial offices in over 150 countries. The company introduces innovative technologies in all spheres of activities: from building global data centers through to automation of oil production platforms. In 2013, the company’s revenue was $24.7 billion. http://www.tc.by/download_files/atomexpo/boriskov.pdf

14 5. RFD is a Russian company with 40 employees. It specializes in developing modeling software for oil and gas fields. The company’s revenue in 2012 was over $4 million. http://rfdyn.com/ru/about/ 13. Name the research groups, institutions, companies leading similar or close developments and describe your advantage (2 000) 1. Schlumberger, CGG Veritas, Roxar and Paradigm Geophysical are leading service companies in the oil and gas industry with qualified personnel engaged 2000 in developing new software modules (HRS-10) and improving existing modules (Petrel 2014, Petrel Guru 2014.1). 2. Rock Flow Dynamics – a Russian company that develops tNavigator software system for modeling hydrodynamic simulation 3. Russian software products (TimeZYX (Траст (Trast)), Gintel, Прайм (Praim), AutoCorr, Пангея (Pangea) and others) are developed to help analyze, interpret and display well log data and geologic modeling data. 4. Open seismic interpretation software platforms (OpendTect, GeoTriple for Oil&Gas Exploration, GeoCraft, qiWorkBench, GI) that offer software for analyzing, interpreting and displaying geoinformation system data. Contain both open programs for common use and closed commercial plugins. Competitive advantages of GeoPlat include:  higher functionality in base case system  higher-quality and versatile functionality as compared with Russian developments  Russian language user interface  availability of databases and data banks storing analyzed and interpreted data from Russian HC fields  Russian-regulation-compliant generation of documents) 14. Please list markets where your project may potentially be implemented (list countries and/or regions, indicate customer segments, estimate the approximate market volume, its dynamics, and your future positioning in it) This project will be implemented on the geophysical service software market (both Russian and international) 2000 The global geophysical service software market volume in 2013 was $3bn. Its combined annual growth rate (CAGR) is 5.6%. The 2018 market volume is expected to reach $3.9bn in 2013 prices. The project will focus on market entry in:  CIS countries (Kazakhstan, Azerbaijan)  Latin America countries (Venezuela, Colombia, Cuba, Mexico, Brazil)  China, Vietnam  India The Russian geophysical service software market volume in 2013 was $440m. Its combined annual growth rate (CAGR) is 7.6%. The 2018 market volume is expected to reach $660m in 2013 prices. We estimate the geologic modeling and seismic interpretation software to make 25%-30% of the total software volume or up to $200m. Principal clients of the geophysical service software are:  Geophysical services companies, geophysical services units in oil and gas companies

15  R&D institutions, engineering and consultancy companies, specialized educational institutes and universities (to outfit geophysics course with relevant software). The product will be positioned on the software market as a maximally-reach-functionality base software with a possibility of building-in new plugins created by a client for his specific purposes, and of interlinking system modules with third party software with the help of open data integration base. The software platform will be licensed at a lower (20-30%) price than international competitors’. 15. Please provide links to relevant market research (in Russian and/or English)

Market research of geophysical service software for oil and gas companies 2000 http://o2consulting.ru/articles/mr-geofiz/ 16. Key project team members (at least 2, no more than 4) a. Full name Boris G. Levin b. Role in the project (position in the company) Project Manager c. Description of the functions, tasks, and work that this team member will  Overall project management; definition of objectives and goals, and perform in the framework of the project follow-up of their execution  Financial control over the project  Control over project marketing d. Sphere of work and professional achievements Extensive experience in developing and running companies in oil and gas industry of Russia e. Key experience related to the project area Experience in bringing similar projects to world standards 1. MD-Seis – sold to Western Atlas 2. Petroalliance – sold to Schlumberger 3. Geostream – sold to Key Energy Services Experience in realizing successful projects 1. Caspian marine seismic exploration: Caspian Geophysical JV; DG-Seis; 2. Oil and gas exploration and production: LUKoil AIK; Vatoil; Permtex; Nobel Oil; Tursunt; Сhernogorskoe; TengizChevroil; Calgary Overseas; MD-Seis Overseas; 3. Drilling operations, seismic survey, E&P, engineer’s services, etc.: MD- Seis; Petroalliance Services Company; Geostream Services Group; UganskFrackmaster. f. Education (higher educational institution, specialty, etc.), academic degree,  MADI Moscow Motorroad Engineering Institute, Road&Technology title Machinery Faculty, 1975-1980, graduated as mechanical engineer 16  All-Union Research Institute of USSR Oil and Gas Industry Management. PhD in economics and management in oil and gas industry, 1989  Management Academy, Celle, Germany, the first group from the USSR Oil & Gas Ministry, 1989  Business English Language School of Portsmouth, UK, 1995  University of Houston,USA – US GAAP Accounting, 1996 g. Places of work and held positions for the last 5 years 2002-present, Chairman, Steering Board, Geostream Services Group h. Scientific publications 1. Levin, B.G., 2009, Great secret of a small company: Nefteservice Publisher, 3(7) 2. Levin, B.G., 2012, The size should not matter: Business Journal, Special Issue No 3 i. Citation level (citation index, Hirsch index, etc.), presentations at international No scientific conferences j. If available, information about intellectual property in the chosen project No direction, including inventions, useful models, production samples, algorithms and protocols, computer programs, databases, custom integrated circuits, whose author (coauthor) is a team member a. Full name Georgiy N. Gogonenkov b. Role in the project (position in the company) Consultant on project development strategy c. Description of the functions, tasks, and work that this team member will Consultancy on project development strategy and directions perform in the framework of the project d. Sphere of work and professional achievements Has spearheaded at CGE a science direction based on an integrated use of seismic dynamic and kinematic parameters for predicting rock matter composition. His scientific interests have a broad range – from designing geophysical data acquisition projects through to building detailed hydrodynamic simulation models of hydrocarbon fields and field development and production monitoring. Was involved in introducing 3D seismic exploration at its stage of developing and refining hydrocarbon field models. 17 Has been active in international cooperation: was one of the managers at Coordination Center for cooperation of CMEA member-countries in oil and gas industry (1974-91); was one of the promoters of contacts with American and European geophysical societies; enjoys SEG (American Society of Exploration Geophysicists) life membership. Since 2000, representative of Russia at World Petroleum Congress Program Committee. e. Key experience related to the project area Has been guiding the development of DV-technology for integrated interpretation of geological, geophysical and hydrocarbon field production data During 1975-1990, participated in developing and implementation of strategic plans for equipping the geophysical sector under USSR Oil Industry Ministry with modern computers, respective software and auxiliary equipment. f. Education (higher educational institution, specialty, etc.), academic degree, Sverdlovsk City Mining Institute, 1960, ScD Tech., 1984, Member, Russian title Academy of Natural Sciences, USSR State Prize winner. g. Places of work and held positions for the last 5 years For the last 5 years has been holding position of First Deputy General Director at Central Geophysical Expedition OJSC. h. Scientific publications Author of over 200 scientific publications, inclusive of 4 monographs; 6 patented inventions 1. South-Kiri field – prospective gas production base in the Russian Far East Parasyna V.S., Tsemkalo M.L., Gogonenkov G. N., Геология нефти и газа (Oil and Gas Geology), 2012, No 3, pp 15-23 2. New paradigm in human interaction with computer in analyzing multi- object and multi-parameter systems and in managerial decision-taking Kashik A.S., Gogonenkov G.N. Геофизика (Geophysics), 2012, № Специальный выпуск (Special Issue), pp 103-113 3. Technology of amplitude azimuth analysis on 3D seismic land data in search for fracturing zones Gogonenkov, G.N., Pleshkevich, A.L. Геофизика (Geophysics), 2012, № Специальный выпуск (Special Issue), pp 18-27 4. Innovative interpretation technology for 2D regional and areal seismic 18 data Gogonenkov G.N., Badalov A.V., Makhova O.S., Menshikova I.A. Геофизика(Geophysics), 2012, № Специальный выпуск (Special Issue), pp 66-70. 5. Refinement technology for velocity-depth model of heterogeneous earth and high resolution seismic imaging on Lomonosov supercomputer Adamovich O.B., Zhukov A.P., Gogonenkov G.N., Pleshkevich A.L. Приборы и системы разведочной геофизики (Exploration geophysics tools and systems), 2012, V. 40, № 2, pp 37-45 http://elibrary.ru/author_items.asp?authorid=523822 i. Citation level (citation index, Hirsch index, etc.), presentations at international 7 (http://elibrary.ru/author_profile.asp?authorid=523822) scientific conferences j. If available, information about intellectual property in the chosen project 1. Invention patent No 2142162 for the Method of dynamic visualization direction, including inventions, useful models, production samples, algorithms of object data; priority of 19.01.1999; registered at Russian Federation and protocols, computer programs, databases, custom integrated circuits, State Register of Inventions, Moscow, on 27.11.1999 (coinventors: whose author (coauthor) is a team member A.S. Kashik, A.L. Fiodorov, S.V. Golosov, M.V. Perepechkin, V.Z. Garipov) 2. Invention Patent No 2144696 for the Method of investigating the structure of multi-dimensional, multi-parameter spatial objects represented as multi-dimensional, multi-parameter digital data arrays; priority of 17.03.1998; registered at Russian Federation State Register of Inventions, Moscow, on 20.01.2000 (coinventors: A.S. Kashik, A.L. Fiodorov, S.V. Golosov) 3. Invention patent No 2128365 for the Method of dynamic visualization of object data; priority of 24.04.1998; registered at Russian Federation State Register of Inventions, Moscow, on 27.03.1999 (coinventors: A.S. Kashik, A.L. Fiodorov, S.V. Golosov, M.V. Perepechkin, V.Z. Garipov) 4. Invention patent No 2132085 for the Method of moving an object on computer screen with the help of a 2D manipulator of computer mouse type; priority of 02.06.1998; registered at Russian Federation 19 State Register of Inventions, Moscow, on 20.07.1999 (coinventors: A.S. Kashik, A.L. Fiodorov, S.V. Golosov, M.V. Perepechkin, V.Z. Garipov) 5. Invention patent No 2164039 for the Method of analyzing dynamic multi-parameter processes; priority of 05.06.2000; registered at Russian Federation State Register of Inventions, Moscow, on 10.03.2001 (coinventors: A.S. Kashik, A.L. Fiodorov, S.V. Golosov, M.V. Perepechkin, V.Z. Garipov) a. Full name Mikhail V. Perepechkin 100 b. Role in the project (position in the company) Technical Director 170 c. Description of the functions, tasks, and work that this team member will Technical management of the project – responsible for selection and 2000 perform in the framework of the project implementation of the project’s technical development strategy; coordination of cooperation between the work groups under the project (groups of programmers responsible for programming software modules) d. Sphere of work and professional achievements Applied and system programming 2000 e. Key experience related to the project area  Lead programmer of DV-Geo software system 2000  experience in introducing software systems, e.g. under DV- Geo project  experience in organizing and rendering technical maintenance and user support  experience in training client users f. Education (higher educational institution, specialty, etc.), academic degree, Astrakhan City Pedagogical Institute, 1992; teaching in information physics 2000 title and computer technology; PhD Tech, 2007; specialized in geoinformatics g. Places of work and held positions for the last 5 years For the last 5 years has been holding position of Manager, Department of 2000 Development and Maintenance/Support of Geologic Modeling Software Systems, at Central Geophysical Expedition OJSC h. Scientific publications 1. Bilibin, S.I., M.V. Perepechkin, Y.V. Kovalevskiy, 2010, Modeling of VV hydrocarbon reservoirs for estimating HC reserves in DV-Geo software system: Ekspozitsiya Neft Gaz (Oil Gas Exposition) Journal, No 3 (in Russian) 2. Bilibin, S.I., M.V. Perepechkin, et al, 2012, Simulation modeling of 20 hydrocarbon reservoir volumes for estimating HC reserves in DV-Geo: Ekspozitsiya Neft Gaz (Oil Gas Exposition) Journal, No 1 (in Russian) 3. Kashik, A.S., S.I. Bilibin, G.N. Gogonenkov, Z.N. Zhemzhurova, M.V. Perepechkin, 2011, Geologic modeling systems in DV family: DV- Discovery, DV-Geo, DV-SeisGeo: Pribory i sistemy razvedochnoy geofiziki (Geophysical Exploration Tools and Systems) Journal, No 4 (in Russian) 4. Mishin, V.A., S.I. Aleksandrov, M.V. Perepechkin, 2011, Specialized system to process 3D VSP data: Pribory i sistemy razvedochnoy geofiziki (Geophysical Exploration Tools and Systems) Journal, V. 38, No 4 (in Russian) 5. Perepechkin, M.V., S.I. Bilibin, 2007, Technologies of using conceptual models in lithology modeling for hydrocarbon reservoirs in DV-Geo: Geoinformatika (Geoinformatics) Journal, No 2007, 9-14 (in Russian) 6. Kovalevskiy, Y.V., G.N. Gogonenkov, M.V. Perepechkin, 2007, Geologic model refinement by auto correlation of wells: Nedropolzovaniye XXI Vek (Subsoil Wealth Use XXI Century) Journal, No 4, 28-31 (in Russian) i. Citation level (citation index, Hirsch index, etc.), presentations at international 3 (http://elibrary.ru/author_profile.asp?authorid=184921) 200 scientific conferences 1. Invention patent No 2142162 for the Method of dynamic visualization 2000 j. If available, information about intellectual property in the chosen project of object data; priority of 19.01.1999; registered at Russian Federation direction, including inventions, useful models, production samples, algorithms State Register of Inventions, Moscow, on 27.11.1999 (coinventors: and protocols, computer programs, databases, custom integrated circuits, A.S. Kashik, A.L. Fiodorov, S.V. Golosov, G.N. Gogonenkov, V.Z. whose author (coauthor) is a team member Garipov) 2. Invention Patent No 2144696 for the Method of investigating the structure of multi-dimensional, multi-parameter spatial objects represented as multi-dimensional, multi-parameter digital data arrays; priority of 17.03.1998; registered at Russian Federation State Register of Inventions, Moscow, on 20.01.2000 (coinventors: A.S. Kashik, A.L. Fiodorov, S.V. Golosov) 3. Invention patent No 2128365 for the Method of dynamic visualization of object data; priority of 24.04.1998; registered at Russian Federation

21 State Register of Inventions, Moscow, on 27.03.1999 (coinventors: A.S. Kashik, A.L. Fiodorov, S.V. Golosov, G.N. Gogonenkov, V.Z. Garipov) 4. Invention patent No 2132085 for the Method of moving an object on computer screen with the help of a 2D manipulator of computer mouse type; priority of 02.06.1998; registered at Russian Federation State Register of Inventions, Moscow, on 20.07.1999 (coinventors: A.S. Kashik, A.L. Fiodorov, S.V. Golosov, G.N. Gogonenkov, V.Z. Garipov) 5. Invention patent No 2164039 for the Method of analyzing dynamic multi-parameter processes; priority of 05.06.2000; registered at Russian Federation State Register of Inventions, Moscow, on 10.03.2001 (coinventors: A.S. Kashik, A.L. Fiodorov, S.V. Golosov, G.N. Gogonenkov, V.Z. Garipov) a. Full name Yuriy L. Bodnarchuk b. Role in the project (position in the company) Marketing Director c. Description of the functions, tasks, and work that this team member will Responsible for selecting and implementing project promotion on the market. perform in the framework of the project Busy coordinating the work of all units under the project to achieve commercial objective of the project d. Sphere of work and professional achievements Management and creation of projects and companies e. Key experience related to the project area Employment as Deputy General Director Marketing, and General Director in various companies:  CGE OJSC  Geostream Assets Management LLC  Geostream Services Group LLC  Geostream East LLC  KATAMAK-NAFTA CJSC  INCONCO CJSC f. Education (higher educational institution, specialty, etc.), academic degree, Moscow I.M. Gubkin Oil and Gas Institute, Oil and Gas Field Development title Faculty, specialized in heat-and-power engineering, 1988 22 g. Places of work and held positions for the last 5 years 1. 21.05. 2014 – present, Deputy General Director Marketing, CGE OJSC 2. 10.04.2013 – present, Deputy General Director, Geostream Assets Management 3. 17.06. 2009 – 09. 04. 2013. General Director, Geostream Services Group h. Scientific publications No i. Citation level (citation index, Hirsch index, etc.), presentations at international No scientific conferences j. If available, information about intellectual property in the chosen project No direction, including inventions, useful models, production samples, algorithms and protocols, computer programs, databases, custom integrated circuits, whose author (coauthor) is a team member 17. The origin and dynamics of the project development 1. The project has been developing since mid-90s; innovative technologies are created and introduced for an integrated interpretation of geoscience data; 2000 first patents were registered in 1997; 1998 was the start year for using DV-1 Discovery system for interpretation of seismic exploration data and for 2D/3D data visualization. 2. Year 2000 crowned completion of DV-Geo software for building 3D geologic models of hydrocarbon fields from exploration and production well data, and DV-Geo commercial use started. Incorporation of geologic modeling tools into DV-Geo system required that DV-Geo be integrated with DV- Discovery system at the onset of the 21 century. The product underwent testing under CGE projects. In 2001, CGE formed a division for designing and monitoring hydrocarbon field development and production. Ever since, oil and gas companies are offered a complete range of dataware services covering the prospecting, exploration, development and production of hydrocarbon fields, i.e. from designing geophysical operations followed by supervision over actual conduct of such operations, the processing and interpretation of acquired data, building grid models and estimating hydrocarbon reserves through to hydrodynamic simulation of reservoirs and designing hydrocarbon field development and production. 3. During 2004-2006, CGE performed 3D modeling and HC reserve estimation for the giant Samotlor oil field by using DV-Geo and DV-Discovery systems. 4. Recently, the international market started actively offering integrated solutions that include hydrodynamic simulations of HC reservoirs. In this connection, CGE is actively working at the present time under this project at creating proprietary hydrodynamic simulator for its integration to the software platform. 2014 is the time when major subsoil wealth user companies (Gazprom, Rosneft, LUKoil and others) request faster extension of software functionality and creation of integrated software systems able to replace the imports. 5. In the light of imports replacement tendency that makes itself felt on the Russian software market of late, major subsoil wealth user companies (Gazprom, Rosneft, LUKoil and others) show more and more interest in the products being developed under this Project. For this reason, meetings have been held and respective protocols have been signed with them to start a corporate testing and beta test of individual software modules. 18. Have you and/or your team members ever received grants for this or a similar work area? (Please list dates, sums, project characteristics, achieved results)

23 No 2000 19. Have you attracted venture and/or other financing? (investors, amounts, results) Creation of the DV—Discovery and DV-Geo software systems was financed by Petroleum Engineering and Consulting LLC 2000 20. Is the project involved in the programmes of other development institutions (if yes, indicate the name of the development institution). The development institutions, for example, include RUSNANO , RVC, Vnesheconombank, MICEX, the Foundation for Assistance to Small Innovative Enterprises, the Agency for Strategic Initiatives, the Russian Association for Direct and Venture Investment, the Federal Agency for Youth, OPORA Russia) No 2000 21. Specify the current project status (results achieved and how they have been confirmed) Software product version that incorporates two operational modules out of three: DV-Discovery seismic interpretation module and DV-Geo geologic modeling 2000 module has been developed and put to regular operation. This software version has successfully been tested at the following companies:  PosNeft  Gazprom Neft  LUKoil  TNK-BP  SurgutNefteGaz 22. Please describe the key goals of the project (no more than three) and the expected period of realization Project goals and milestones 200 per goal 1. The product version development without hydrodynamic simulation module, that is, integration of two ready modules to be completed roughly by end 2015. 2. Development of hydrodynamic simulation module, its integration into the system and release of the product beta version to be completed in the early half of 2016. 3. Release of the ready product version to the Russian market and initial licensing of the ready product expected to take place by end 2016. 23. General plan of project development 1. 2014 – product alpha-version development – formation of RUR12.5m funds out of own capital and outside capital from investors to finance the work at 2000 product functionality extension, hydrodynamic simulation module integration and new hydrodynamics solutions. 2. 2015 – product beta-version development – formation of RUR52.5m funds out of own capital and outside capital from investors to finance finalization of the work on hydrodynamics items and integration of principal modules. 3. 2016 – product testing and pilot operation of the product at a client’s on commercial projects; product marketing and formation of maintenance/support service – formation of RUR95.3m funds inclusive in particular of the funds to finance finalization of the work on hydrodynamics items and integration of principal modules. 4. 2017 – release of ready product and start of licensing – formation of RUR53.5m funds. 24 To cover eventual shortage of funds in 2016 and 2017, plans are to use investment assets.  grids and faults (Petrel data model compatibility)  load/unload of Petrel, IRAP RMS projects  PIX-Geo hydrodynamic simulation module development and introduction  switchover to modern visualization tools and libraries to help create cross-platform applications 24. Roadmap 2015

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Research and  PIX-GEO –SPE 10 test results  PIX-GEO – transfer of  DV-Geo – adaptation of modeling and  PIX-Geo – black-oil module development  DV-Geo – auto correlation of well logs hydrodynamic simulation visualization algorithms to working with implementation using Zhekovskiy charts modeling algorithms to horizontal wells  DV-Geo – preprocessing and  DV-Geo – completion of algorithms for stratigraphic grid  DV-Geo – software module postprocessing module adaptation to geostatistical analysis and modeling  DV-Geo – multipoint implementation for drilling deviated and an abstract hydrodynamic simulator  DV-Discovery – implementation of stochastic module based on horizontal wellbore (ECLIPSE format) interactive reference system support in DV- a 2D training pattern  DV-Discovery – algorithm development Discovery interface  DV-Geo – development (transfer from INPRES system) for of lithology profile stochastic inversion generation algorithms based on a DV-Geo dynamic profile  DV-Discovery – algorithm development (transfer from INPRES system) for auto picking geologic faults Creating a product Alpha-version creation of DV-Discovery DV-Geo and DV-Discovery  PIX-Geo – alpha-version with reference system versions with streamlined black oil functionality integration via data  DV-Geo – alpha-version with exchange interface. hydrodynamic simulation Improved user-interface modeling workspace prototype General organizational  1 programmer for DV-Discovery group 1 programmer for PIX-Geo 2 marketing specialists 2 user support specialists development and  1 seismic interpretation methodologist group hiring plan  1 hydrodynamic simulation modeling 25 methodologist  1 programmer mathematician Protection of Registration of corporate intellectual property identity and trademark and licensing Marketing, 1. Analysis of market, outer environment 1. CRM system Development of document forms: 1. Creating pages on internet implementation, and competitors; running a SWOT-analysis introduction  license agreements marketplaces: market strategy 2. Consolidation of lists of current and 2. website development  sale/purchase agreements  Linked in; potential clients and filling  accompanying documentation  Youtubechannel+; 3. Development of printed/electronic  commercial offers  Facebook; products:  letters to clients  Industry-sector forum  booklets 2. E-mail marketing  presentation forms  news block development  corporate identity items  mailing facility development

Sales and attraction of Investments amounting to RUR15m to finance Investments amounting to Investments amounting to RUR15m to Investments amounting to RUR15m to investment the work on hydrodynamics items and RUR15m to finance the finance the work on hydrodynamics items finance the work on hydrodynamics integration of principal modules. work on hydrodynamics and integration of principal modules. items and integration of principal Investments amounting to RUR10m to cover items and integration of modules. the purchase of HW/SW and office equipment principal modules. to facilitate developing company’s software. 2016

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Research and  workup of geologic model adaptation  development of a  development of a common (integrated)  system switchover to cross- development algorithms in accordance with the history of dipping-fault data model data model for DV-Geo and DV-Discovery platform environment of software field development and production (Kalman compatible with Petrel and  integration of software modules on the development (QT) filter) IRAP RMS formats basis of a single data storage space  PIX-Geo functionality extension  integration with PIX-Geo  workup of multi-  PIX-Geo functionality extension  DV-Geo – incorporation of CGE-developed component modeling in  DV-Geo – neural network analysis of GBS (geophysical borehole survey or well log) PIX-Geo GBS-GBS, GBS-core relationships data processing sequence into DV-Geo  DV-Geo – cluster functionality analysis of GBS-GBS, GBS-  DV-Geo – hydrocarbon reserve estimation core relationships

26 using 3D models

Creating a product  PIX-Geo black oil beta-version Finalized version of Version of products with a single integrated  DV-Geo beta-version with PIX-Geo GEOPLAT (DV-Geo, DV- data base integration module Discovery, PIX-Geo black oil) modular system

General organizational  2 specialists for Marketing Dept  2 specialists for Client development and  2 programmers Support Dept hiring plan  2 methodologists  1 programmer  1 specialist for Client Support Dept Protection of Registration of patents, software intellectual property products and software product and licensing modules Marketing, 1. Creation of product support group 1. Finalization of work on 1. Final workup of product interface 1. Start of advertising in industry implementation, 2. Training of personnel reference directories and 2. Test runs and pilot production runs sector media: market strategy 3. development of pricing strategy – price technical documentation  journals gridding by product and license type 2. Consolidation of  internet 4. Test runs and pilot production runs principal sales channels  fora 3. Test runs and pilot 2. Test runs and pilot production runs production runs 3. Russian market entry Sales and attraction of Investment of RUR23.8m for functionality Investment of RUR23.8m Investment of RUR23.8m for functionality Investment of RUR23.8m for system investments buildup (PIX-Geo hydrodynamic simulation for functionality buildup buildup (creation of Petrel-data-model- switchover to cross-platform module introduction, switchover to modern (PIX-Geo hydrodynamic compatible grids and geologic faults, environment, PIX-Geo functionality visualization tools and libraries of cross- simulation module creation of load/unload tool for Petrel and development and extension. platform applications) introduction, switchover to IRAP RMS projects) modern visualization tools and libraries of cross- platform applications), creation of Petrel-data- model-compatible grids and geologic faults)

2017

27 Q1 Q2 Q3 Q4

Research and Transfer of 3D visualization algorithms to Integrated solution workup Beta-testing of integrated GEOPLAT development OpenInventor cross-platform library system

Creating a product Alpha-version of cross- Beta-version of cross-platform GEOPLAT platform GEOPLAT PRO PRO integrated system integrated system General organizational  2 specialists for Marketing Dept  2 programmers 1 programmer development and  1 programmer  2 methodologists hiring plan  2 specialists for Client Support Dept Protection of Registration of patents, software intellectual property products and software product and licensing modules Marketing, 1. Participation in Russian and international 1. Participation in 1. Participation in Russian and 1. Participation in Russian and implementation, exhibitions and conferences Russian and international international exhibitions and conferences international exhibitions and market strategy 2. Conduct of workshops and training with exhibitions and conferences 2. Conduct of workshops and training conferences the use of proprietary software 2. Conduct of with the use of proprietary software 2. Conduct of workshops and workshops and training training with the use of proprietary 3. Client feedback analysis. Use of telephone 3. Client feedback analysis. Use of software hotline. with the use of proprietary telephone hotline. software 3. Client feedback analysis. Use 4. Extension of functionality and region to be 4. Extension of functionality and of telephone hotline. serviced by Support Dept 3. Client feedback region to be serviced by Support Dept 4. Extension of functionality and analysis. Use of telephone region to be serviced by Support Dept 5. Market monitoring and analysis to find hotline. 5. Market monitoring and analysis to out new technologies and competitors, and find out new technologies and competitors, 5. Market monitoring and modified strategies in product promotion 4. Extension of and modified strategies in product analysis to find out new technologies functionality and region to promotion and competitors, and modified be serviced by Support strategies in product promotion Dept 5. Market monitoring and analysis to find out new technologies and competitors, and modified strategies in product promotion 28 Sales and attraction of Investment of RUR34.7m to cover the workup Investment of RUR34.7m to Investment of RUR34.7m to cover the Investment of RUR34.7m to cover the investment of integrated solution, transfer of cover the workup of workup of integrated solution, marketing workup of integrated solution, development to cross-platform basis, integrated solution, and introduction marketing and introduction marketing and introduction marketing and introduction Investment of RUR12m to cover the purchase of HW/SW and office equipment to facilitate developing company’s software.

Sales proceeds of RUR24.3m. Sales proceeds of Sales proceeds of RUR24.3m Sales proceeds of RUR24.3m RUR24.3m 2018

Q1 Q2 Q3 Q4

Research and development Creating a product Release of integrated cross-platform Geoplat PRO system General organizational  2 specialists for Marketing Dept 1 programmer development and  4 programmers hiring plan  2 specialists for Client Support Dept  2 methodologists Protection of Registration of patents, software intellectual property products and software product and licensing modules Marketing, 1. International market entry (CIS countries) 1. Participation in 1. Participation in Russian and 1. The company’s share on the implementation, 2. Participation in Russian and international Russian and international international exhibitions and conferences Russian market of geophysical market strategy exhibitions and conferences exhibitions and conferences 2. Conduct of workshops and training services software is expected to achieve about 2.5% 3. Conduct of workshops and training with 2. Conduct of with the use of proprietary software the use of proprietary software workshops and training 3. Client feedback analysis. 2. Participation in Russian and with the use of proprietary international exhibitions and 4. Client feedback analysis. software 4. Extension of functionality and region to conferences be serviced by Support Dept 5. Extension of functionality and region to be 3. Client feedback 3. Conduct of workshops and serviced by Support Dept analysis. 5. Market monitoring and analysis to find training with the use of proprietary out new technologies and competitors, and 6. Market monitoring and analysis to find 4. Extension of software 29 out new technologies and competitors, and functionality and region to modified strategies in product promotion 4. Client feedback analysis. modified strategies in product promotion be serviced by Support 5. Extension of functionality and Dept region to be serviced by Support Dept 5. Market monitoring 6. Market monitoring and analysis to and analysis to find out new find out new technologies and technologies and competitors, and modified strategies competitors, and modified in product promotion strategies in product promotion Sales and attraction of Investment of RUR48.6m to cover the workup Investment of RUR48.6m to Investment of RUR48.6m to cover the Investment of RUR48.6m to cover the investment of integrated solution in accordance with cover the workup of workup of integrated solution in workup of integrated solution in clients’ feedback, marketing, introduction and integrated solution in accordance with clients’ feedback, accordance with clients’ feedback, promotion of the product on the Russian and accordance with clients’ marketing, introduction and promotion of marketing, introduction and CIS markets feedback, marketing, the product on the Russian and CIS markets promotion of the product on the introduction and promotion Russian and CIS markets of the product on the Russian and CIS markets

Sales and maintenance/support proceeds of Sales and Sales and maintenance/support proceeds of Sales and maintenance- RUR153.7m. maintenance/support RUR153.7m. support/proceeds of RUR153.7m. proceeds of RUR153.7m. 2019

Q1 Q2 Q3 Q4

Research and development Creating a product General organizational development and hiring plan Protection of Registration of patents, software intellectual property products and software product and licensing modules Marketing, 1. International market entry (China, India, 1. Participation in 1. Participation in Russian and 1. The company’s share on the 30 implementation, Latin American countries) Russian and international international exhibitions and conferences Russian market of geophysical services market strategy 2. Participation in Russian and international exhibitions and conferences 2. Conduct of workshops and training software is expected to achieve about exhibitions and conferences 2. Conduct of with the use of proprietary software 3% 3. Conduct of workshops and training with workshops and training 3. Client feedback analysis. 2. Participation in Russian and the use of proprietary software with the use of proprietary international exhibitions and software 4. Extension of functionality and conferences 4. Client feedback analysis. region to be serviced by Support Dept 3. Client feedback 3. Conduct of workshops and 5. Extension of functionality and region to be analysis. 5. Market monitoring and analysis to training with the use of proprietary serviced by Support Dept find out new technologies and competitors, 4. Extension of software 6. Market monitoring and analysis to find and modified strategies in product functionality and region to promotion 4. Client feedback analysis. out new technologies and competitors, and be serviced by Support modified strategies in product promotion 5. Extension of functionality and Dept region to be serviced by Support Dept 5. Market monitoring 6. Market monitoring and and analysis to find out new analysis to find out new technologies technologies and and competitors, and modified competitors, and modified strategies in product promotion strategies in product promotion Sales and attraction of Investment of RUR64.9m to cover the workup Investment of RUR64.9m to Investment of RUR64.9m to cover the Investment of RUR64.9m to cover the investment of integrated solution in accordance with cover the workup of workup of integrated solution in workup of integrated solution in clients’ feedback, marketing, introduction and integrated solution in accordance with clients’ feedback, accordance with clients’ feedback, promotion of the product on the Russian, CIS accordance with clients’ marketing, introduction and promotion of marketing, introduction and and other countries’ markets. feedback, marketing, the product on the Russian, CIS and other promotion of the product on the introduction and promotion countries’ markets. Russian, CIS and other countries’ Investment of RUR14m to cover the purchase of the product on the markets. of HW/SW and office equipment to facilitate Russian, CIS and other developing company’s software. countries’ markets.

Sales and maintenance/support proceeds of Sales and Sales and maintenance/support proceeds of Sales and maintenance/support RUR210.6m. maintenance/support RUR210.6m. proceeds of RUR210.6m. proceeds of RUR210.6m. 2020

31 Q1 Q2 Q3 Q4

Research and development Creating a product General organizational development and hiring plan Protection of Registration of patents, software intellectual property products and software product and licensing modules Marketing, 1. Participation in Russian and 1. Participation in 1. Participation in Russian and 1. Participation in Russian and implementation, international exhibitions and conferences Russian and international international exhibitions and conferences international exhibitions and market strategy 2. Conduct of workshops and training exhibitions and conferences 2. Conduct of workshops and training conferences with the use of proprietary software 2. Conduct of with the use of proprietary software 2. Conduct of workshops and 3. Client feedback analysis. workshops and training 3. Client feedback analysis. training with the use of proprietary with the use of proprietary software 4. Extension of functionality and region software 4. Extension of functionality and to be serviced by Support Dept region to be serviced by Support Dept 3. Client feedback analysis. 3. Client feedback 4. Extension of functionality and 5. Market monitoring and analysis to analysis. 5. Market monitoring and analysis to find out new technologies and competitors, find out new technologies and competitors, region to be serviced by Support Dept and modified strategies in product promotion 4. Extension of and modified strategies in product 5. Market monitoring and functionality and region to promotion analysis to find out new technologies be serviced by Support and competitors, and modified Dept strategies in product promotion 5. Market monitoring and analysis to find out new technologies and competitors, and modified strategies in product promotion Sales and attraction of Investment of RUR81.5m to cover the workup Investment of RUR81.5m to Investment of RUR81.5m to cover the Investment of RUR81.5m to cover the investment of integrated solution in accordance with cover the workup of workup of integrated solution in workup of integrated solution in clients’ feedback, marketing, introduction and integrated solution in accordance with clients’ feedback, accordance with clients’ feedback, promotion of the product on the Russian, CIS accordance with clients’ marketing, introduction and promotion of marketing, introduction and 32 and other countries’ markets. feedback, marketing, the product on the Russian, CIS and other promotion of the product on the introduction and promotion countries’ markets. Russian, CIS and other countries’ of the product on the markets. Russian, CIS and other countries’ markets.

Sales and maintenance/support proceeds of Sales and Sales and maintenance/support proceeds of Sales and maintenance/support RUR298.7m. maintenance/support RUR298.7m. proceeds of RUR298.7m. proceeds of RUR298.7m. 2021

Q1 Q2 Q3 Q4

Research and development Creating a product General organizational development and hiring plan Protection of Registration of patents, software intellectual property products and software product and licensing modules Marketing, 1. Participation in Russian and 1. Participation in 1. Participation in Russian and 1. Participation in Russian and implementation, international exhibitions and conferences Russian and international international exhibitions and conferences international exhibitions and market strategy 2. Conduct of workshops and training exhibitions and conferences 2. Conduct of workshops and training conferences with the use of proprietary software 2. Conduct of with the use of proprietary software 2. Conduct of workshops and 3. Client feedback analysis. workshops and training 3. Client feedback analysis. training with the use of proprietary with the use of proprietary software 4. Market monitoring and analysis to software 4. Market monitoring and analysis to find find out new technologies and competitors, out new technologies and competitors, and 3. Client feedback analysis. and modified strategies in product promotion 3. Client feedback modified strategies in product promotion 4. Market monitoring and analysis to analysis. find out new technologies and 4. Market monitoring and competitors, and modified strategies analysis to find out new in product promotion technologies and

33 competitors, and modified strategies in product promotion Sales and attraction of Investment of RUR89m to cover the workup of Investment of RUR89m to Investment of RUR89m to cover the workup Investment of RUR89m to cover the investment integrated solution in accordance with clients’ cover the workup of of integrated solution in accordance with workup of integrated solution in feedback, marketing, introduction and integrated solution in clients’ feedback, marketing, introduction accordance with clients’ feedback, promotion of the product on the Russian, CIS accordance with clients’ and promotion of the product on the marketing, introduction and and other countries’ markets. feedback, marketing, Russian, CIS and other countries’ markets. promotion of the product on the introduction and promotion Russian, CIS and other countries’ of the product on the markets. Russian, CIS and other countries’ markets.

Sales and maintenance/support proceeds of Sales and Sales and maintenance/support proceeds of Sales and maintenance/support RUR327m. maintenance/support RUR327m. proceeds of RUR327m. proceeds of RUR327m. 2022

Q1 Q2 Q3 Q4

Research and development Creating a product General organizational development and hiring plan Protection of Registration of patents, software intellectual property products and software product and licensing modules Marketing, 1. Participation in Russian and 1. Participation in 1. Participation in Russian and 1. Participation in Russian and implementation, international exhibitions and conferences Russian and international international exhibitions and conferences international exhibitions and market strategy 2. Conduct of workshops and training exhibitions and conferences 2. Conduct of workshops and training conferences with the use of proprietary software 2. Conduct of with the use of proprietary software 2. Conduct of workshops and 3. Client feedback analysis. workshops and training 3. Client feedback analysis. training with the use of proprietary with the use of proprietary software 34 4. Market monitoring and analysis to software 4. Market monitoring and analysis to find 3. Client feedback analysis. find out new technologies and competitors, 3. Client feedback out new technologies and competitors, and 4. Market monitoring and analysis to and modified strategies in product promotion analysis. modified strategies in product promotion find out new technologies and 4. Market monitoring and competitors, and modified strategies analysis to find out new in product promotion technologies and competitors, and modified strategies in product promotion Sales and attraction of Investment of RUR98m to cover the workup of Investment of RUR89m to Investment of RUR89m to cover the workup Investment of RUR89m to cover the investment integrated solution in accordance with clients’ cover the workup of of integrated solution in accordance with workup of integrated solution in feedback, marketing, introduction and integrated solution in clients’ feedback, marketing, introduction accordance with clients’ feedback, promotion of the product on the Russian, CIS accordance with clients’ and promotion of the product on the marketing, introduction and and other countries’ markets. feedback, marketing, Russian, CIS and other countries’ markets. promotion of the product on the introduction and promotion Russian, CIS and other countries’ of the product on the markets. Russian, CIS and other countries’ markets.

Sales and maintenance/support proceeds of Sales and Sales and maintenance/support proceeds of Sales and maintenance/support RUR360m. maintenance/support RUR360m. proceeds of RUR360m. proceeds of RUR360m.

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