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

Polaris is the successor to the Polaris Group of Companies and serves as the ultimate parent company (“the Polaris Inc.”). Based in Canada, Polaris Inc. is the country’s oldest and experienced seismic company, having been in operation since 1996. Since its inception, the Polaris Inc. has completed over 1,000 2D and 3D seismic projects, some spanning over 1,000 square km. The Polaris expanded globally in 2008 and currently operates across four continents, undertaking projects in some of the world’s most challenging environments, such as the arctic, desert, jungle, and transition zones. In 2023, Polaris expanded into Asia through Polaris Danah Natural Resource Development (Pvt.) Limited, a Pakistani company.

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 land-based 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, with deep expertise in sales, project management, and seismic operations. Leveraging Mr. Mooney's extensive experience, the leadership team of Polaris offers a wealth of knowledge and expertise, ensuring effective oversight and strategic direction for the Company’s growth and operations. 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. Mooney has played a pivotal role in shaping Polaris' strategic direction, focusing on efficiency and innovative exploration techniques. Mr. Mooney began his employment in the industry at the age of 16 when he took a job on a seismic crew in the Canadian arctic. He completed a degree in geology at the University of Calgary. In 1984, joined Capilano Geophysical Ltd. as a geologist, eventually becoming Vice President, Marketing. This is where he began his professional relationship with Joe Little. In 1992, Mr. Mooney left to run Surface Search Inc., founded in 1989. Surface Search Inc specialized in high resolution, ground-penetrating radar technology and successfully completed projects on four continents. In 1996, Mr. Mooney and Joe Little acquired Polaris Inc..

As the Company is relatively new in Pakistan and its operations are in the early stages, no formal board committees are currently in place. However, the Board of Directors meets regularly to address urgent matters, with minutes of these meetings being prepared and formally documented. In FY24, one board meeting was convened which was attended by all members. 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.

The Company currently does not have an internal audit department. For FY24, which marks the first year of its operations, the financials were audited by Azeem Ullah & Co. Chartered Accountants, who have expressed unqualified opinion on the FY24 financials. As the Company grows, establishing an internal audit function and formalizing a risk assessment process may become a priority to enhance governance and ensure financial controls are in place. As the Company is new, the audited financials of the Group are also available, with the auditors providing an unqualified opinion on the financials for CY22. This reflects the Group's adherence to financial reporting standards and demonstrates the accuracy and reliability of its financial statements for the year.

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, as a newly established company, operates without specific committees, demonstrating flexibility and adaptability. It 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. The proactive support from senior leadership ensures that foundational processes align with strategic goals, paving the way for sustainable growth.

Currently, the Management Information System (MIS) is in its early stages of development, as the Company has recently commenced its operations. At this point, 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 once the company begins its operations.

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 cutting-edge 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.

The Company currently does not have any active projects in its pipeline and is focused on sourcing new opportunities. These projects will primarily be secured through a bidding process and will be contractual in nature, enabling the Company to remain flexible and competitive. Operating as part of a larger group with a strong foundation in the seismic survey industry, the Company aims to leverage its group’s expertise and market reputation to provide cost-effective and reliable solutions to clients. The group’s performance underscores its resilience, with revenues of USD 22mln in FY21 and USD 15.8mln in FY22. The Company has outlined ambitious financial projections for the next five years. Revenue is expected to grow from PKR 1.2bln (USD 7.5mln) in FY24 to PKR 2.5bln (USD 15.63mln) by 2028. With the backing of the group’s established presence and operational strength, the Company is well-positioned to secure projects, and achieve sustained growth in the seismic survey sector.

The projections highlight a significant growth in net income, increasing from PKR 250mln in FY24 (USD 1.56mln) to PKR 1bln (USD 6.25mln) in FY28. The translation of these margins into actual performance remains to be seen, contingent on the successful intake of projects and their timely and efficient completion. The group’s financial performance underscores its operational efficiency, with gross profit margins of 25% and net profit margins of 6.6% in FY22, compared to 17% and 11.5% in FY21. As part of a larger group with a strong foundation in the seismic survey industry, the Company intends to optimize operations in Pakistan by leveraging shared group resources and equipment to support its seismic activities effectively.

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 form the project companies required to do E&P studies based on contract agreed between the parties, payable related to the subcontracting staff, transportation and stay cost, drilling, survey and other related cost.

Since the Company currently has no borrowings and no projects in hand, there is no coverage ratio at present. This metric is expected to develop as the Company’s operations gain momentum and projects are secured.

Currently, the Company has an issued paid-up capital of PKR 100,000. Following its first year of operations, the Company reported a net loss of PKR 82.8mln, resulting in negative equity of PKR 82.7mln. This loss is primarily due to the absence of projects, which resulted in no revenue generation while incurring operating costs. To support the business and initiate operations, the Group injected capital in the form of investments from sponsors amounting to PKR 14.7mln, contributions from the KBDL and N & B Consortium of PKR 112.65mln, and a loan of PKR 0.6mln from a director. Going forward, the management has no plans to leverage the Company and aims to maintain its financial position through internal resources and group support. In addition, the consolidated financial position of the group reflects no borrowings from financial institutions, highlighting the group's ability to generate sufficient cash flow to sustain its operations independently.