Polaris Danah Natural Resource Development (Pvt.) Limited (“Polaris” or “the Company”) was incorporated as a private limited company under the Companies Act, 2017 on October 30, 2023. The Company’s registered office is situated in Islamabad, Pakistan.

Polaris is the successor to the Polaris Group of Companies and operates as the ultimate parent company (“Polaris Inc.”). Headquartered in Canada, Polaris Inc. is recognized as the country’s oldest and most experienced seismic company, with operations dating back to 1996. Since its inception, Polaris Inc. has successfully executed over 1,000 seismic projects, both 2D and 3D, including assignments extending beyond 1,000 square kilometers. The Company expanded internationally in 2008 and now operates across four continents, undertaking seismic projects in some of the world’s most challenging terrains, including arctic regions, deserts, jungles, and transition zones. In 2023, Polaris extended its footprint into Asia through the establishment of Polaris Danah Natural Resource Development (Pvt.) Limited, a Pakistan-based entity.

Polaris is known for employing state-of-the-art seismic technology, including their patented Explorer 860 Accelerated Weight Drop System, designed for seismic data collection in rugged terrain. The Company multiple energy source options, such as vibroseis and dynamite, depending on the project’s requirements. The Polaris offers a range of geophysical and seismic services, which include: 1. Seismic Data Acquisition: Conducting 2D and 3D seismic surveys to provide detailed imaging of subsurface geological formations. This could involve both landbased and transition zone operations. 2. Survey Design and Planning: Offering expertise in designing and planning seismic projects tailored to the unique environmental and geological conditions of Pakistan and surrounding regions. 3. Geophysical Data Processing and Analysis: Analyzing and interpreting seismic data to support exploration activities, such as oil, gas, and mineral exploration. 4. Environmental and Logistical Support: Managing the environmental impact and logistical challenges of seismic operations, especially in remote or difficult terrains, such as deserts, mountains, or coastal zones. 5. Project Management and Execution: Overseeing the entire seismic project lifecycle, from initial design through to data acquisition and final analysis, ensuring quality and efficiency. These services help oil and gas companies, as well as other resource exploration ventures, make informed decisions based on accurate subsurface imaging.

The shareholding of Polaris is distributed between two individuals. Mr. Abdellatif Hakkoumi holds 98% of the shares in the Company and serves as the Chief Executive Officer. The remaining 2% of the shares are held by Ms. Toshiba. Both individuals are representatives of the Polaris Group and are responsible for overseeing the operations of Polaris on behalf of the group in Pakistan. However, in October 2023, Polaris entered into a joint venture with a consortium consisting of KBDL and N&B, both construction companies. The investment made in Polaris will be converted into shares, resulting in a 25% shareholding being transferred to each of the two entities. The remaining 50% of the shares will be retained by Mr. Abdellatif Hakkoumi

The Company, though newly incorporated in Pakistan in 2023, is backed by the extensive history of its parent group - the Polaris Inc., which has been operating since 1996 and has a presence across multiple continents. This highlights the group’s resilience and commitment to growth and expansion. Additionally, both owners, as representatives of the Polaris Group, emphasize that the parent company maintains a direct influence over operations in Pakistan, ensuring strategic alignment with the group’s overall objectives. The ongoing involvement and dedication of these key individuals are crucial for the Company’s stability.

The team of the Company brings extensive experience in the seismic and exploration industries, which has been essential to Polaris Group’s global success. Their deep industry knowledge enables the Group to deliver innovative solutions and adapt to market dynamics, ensuring a strong global presence. The leadership’s expertise and the Group’s forward-thinking approach have fostered long-term client relationships and sustainable growth, reinforcing the Polaris competitive edge in the global marketplace.

The financial strength of the sponsor is demonstrated through the Company’s consistent investment in advanced seismic solutions. The sponsor's global presence, combined with its vision to expand into Asia through its Pakistani company, Polaris, underscores its commitment to long-term sustainability. This strategic move positions the Polaris Inc. to capitalize on growth opportunities across the region. By leveraging its established global network and expertise, the sponsor ensures a resilient business model capable of navigating market challenges while pursuing expansion and innovation in emerging markets.

The Company’s governance structure is anchored by a Board of Directors (BoD) composed of experts in geophysics, resource exploration, and corporate strategy. The Group President and CEO, Mr. William Bill Mooney, brings over 35 years of experience in the seismic acquisition industry. The Board of Directors (BoD) of Polaris is composed of four members, including CEO Mr. Abdel Latif Hakkoumi. The other distinguished members are Mr. Abdul Rehman Abdullah Mohammad Al Taharhouni, Mr. Asif Hayat, and Mr. Abdul Assad Saad Almabroukh. Together, they provide strong leadership and strategic guidance to drive the Company's success.

Mr. Abdel Latif Hakkoumi, CEO of PDNRD, brings extensive experience in seismic survey operations and provides strategic direction to the Company, ensuring operational efficiency. Under his leadership, PDNRD has strengthened its technical capabilities and is well-positioned to execute its projects in Pakistan. Other members of the board also contribute valuable expertise across operations and business development, supporting the Company’s growth objectives and ensuring smooth execution of its strategic initiatives.

The Board of Directors meets regularly to address urgent matters, with minutes of these meetings being prepared and formally documented. To enhance the effectiveness and transparency of its operations, the Company plans to improve its governance structure by formalizing committees and introducing independent oversight as its operations expand. This will help to improve the decision-making processes and strengthen accountability as the Company grows.

For FY24, which marks the first year of its operations, the financials were audited by Azeem Ullah & Co. Chartered Accountants, who have expressed an unqualified opinion on the FY24 financials. The audited accounts for FY25 are currently being finalized and will be reviewed once available to provide a complete perspective on the Company’s financial performance and operational progress.

Polaris operates under a structured hierarchy led by Director and CEO Abdellatif Hakkoumi, ensuring efficient operations across all functions. Key roles reporting to the CEO include the Operations Manager, HSE leadership, Business Development, and HR & Accounting, focusing on project execution, safety, growth, and efficiency. The Operations Manager oversees Project Managers and specialized teams such as survey, geophysical support, and data processing, all led by experienced personnel. Field operations are supported by surveyors and mechanical crews, while administrative functions, including HR, camp management, and auxiliary services like catering and rescue teams, ensure seamless collaboration and organizational effectiveness.

The operational team of Polaris comprises skilled seismic engineers, data analysts, and logistics experts, equipped to handle challenging environments like the Rocky Mountains. Under the leadership of Abdellatif Hakkoumi, who oversees all operations and strategic initiatives, the team is equipped to deliver projects efficiently and safely. Business Development is led by Group CEO Mr. Bill Mooney, driving growth and client relations, while operations are managed by Mansour Amara and Khadim Hussain, overseeing Project Managers Mohamed Khairy and Athman Azzoug, Survey Manager Ismail Benhabireche, QC Manager Namane Djilali, and Recording Manager Ghalem Kerroum. HR and Accounting are managed by Syed Jazib, ensuring organizational efficiency. Safety and compliance are prioritized under Chris Brown, Director of HSE, supported by HSSE Manager Khaled Rahmani and HSE Advisor Naveed Khan. On-site logistics and accommodations are overseen by Camp Manager Gul Faraz Khan, creating a cohesive structure promotes effective collaboration.

Polaris currently relies on the direct involvement of the board and guidance from the group management team to oversee operational activities. This structure facilitates swift decision-making and efficient resource allocation during the early stages of its operations. Although the control environment is still in its formative stages, it is expected to evolve and strengthen as the Company grows and formal structures are implemented.

A customized software solution has been created using Excel, which is integrated with the internal software of the Group. This setup allows for basic data management and reporting, but it is part of an evolving strategy that will be further enhanced.

Polaris, as a group, emphasizes the establishment of a good control environment through rigorous safety protocols, comprehensive risk assessments, and strict adherence to health, safety, and environmental (HSE) standards. The Company aligns with group protocols, ensuring that its operations meet international safety and quality benchmarks. Regular reviews and updates of operational policies by management further reinforce compliance and maintain alignment with the standards set by the Group.

The seismic sector in Pakistan, a critical subsector of the Exploration & Production (E&P) industry, offers significant benefits such as improved exploration efficiency, cost-effectiveness, and enhanced recovery from mature fields, all of which contribute to meeting the country's growing energy demands. Seismic studies enable E&P companies to optimize resource allocation by identifying the most promising drilling sites and reducing unnecessary drilling costs. However, the sector faces risks, including high initial investment costs, environmental concerns, and regulatory challenges. Additionally, the complexity of data interpretation poses a risk, as incorrect readings could lead to misguided investments. Despite these challenges, the seismic subsector remains vital for sustainable growth in Pakistan’s energy supply.

Polaris, as a seismic services company in Pakistan, holds a competitive position within the E&P sector, which is dominated by large players like Mari Petroleum and OGDCL. While these companies benefit from vast resources and infrastructure, Polaris distinguishes itself as a flexible, specialized provider of seismic services. Its expertise in seismic data acquisition and processing supports efficient exploration of hydrocarbon reserves in regions where seismic studies are crucial for identifying new drilling opportunities. Polaris advantages include regional experience, technological innovation, cost-effectiveness, and the ability to cater to smaller E&P firms with cuttingedge techniques. However, it faces challenges such as limited resources, lack of integrated services, and reduced market penetration compared to these established giants. Despite these drawbacks, Polaris focus on seismic services positions it to carve a niche in the growing market for advanced exploration technologies in Pakistan.

During FY24, the Company did not have any active projects in its pipeline, and accordingly, no revenue was generated in the period. During this time, the Company remained focused on sourcing new opportunities primarily through competitive bidding processes, enabling operational flexibility and cost competitiveness. Subsequent to FY24, the Company has secured new business, having been awarded the Al Haj Project for the North Baska Block (753 L.Kms) using the Stryde Nodal System, with the Polaris First Active crew currently deployed at the site. In addition, the Company has a pipeline project with a few big E&P companies that is expected to materialize in the near term, providing improved revenue visibility.

Margins remain muted in the initial phase as the Company ramps up operations following the award of its projects. As project execution stabilizes and utilization levels improve, margins are expected to materialize and gradually strengthen, supported by operating leverage, cost efficiencies, and execution experience gained across ongoing and future contracts.

Currently, there are no dedicated seismic companies operating in Pakistan, as seismic activities are primarily conducted by E&P companies such as OGDCL and Mari through their established in-house departments. The Company with the aim to establish its footprint in Asia, aims to establish an initial market share of 12% in its early years of operation, with a gradual increase to 20% in 5 years’ time However, the actual market share is to evolve progressively as operations gain momentum.

Currently, the Company’s working capital is limited to covering building rent, staff salaries, and other administrative costs, which are managed with the support of the Group. As projects are awarded to the Company, the working capital cycle is expected to evolve accordingly. Management believes that the Company will generate sufficient cash flows from operations to sustain its activities effectively, without the need for additional working capital lines. Receivables will be from the project companies required to do E&P studies based on the contract agreed between the parties, and payable will be related to the subcontracting staff, transportation and stay cost, drilling, survey and other related costs.

As the Company’s awarded projects progress into execution and operations gain momentum, the relevant financial metrics, including coverage ratios, are expected to materialize and become more established and reflective of the Company’s performance.

The Company currently has an issued paid-up capital of PKR 100,000. Following its first year of operations, the Company reported a net loss of PKR 82.8 million, resulting in negative equity of PKR 82.7 million, primarily due to the initial phase of operations before revenue-generating projects were underway. To support the business and initiate operations, the Group provided capital through sponsor investments of PKR 14.7 million, contributions from the KBDL and N & B Consortium totaling PKR 112.65 million, and a director’s loan of PKR 0.6 million. With projects now awarded to Polaris, the Company is transitioning into its revenue-generating phase. Management continues to focus on maintaining a strong financial position through internal resources and Group support, without plans to leverage external borrowings.