Asian Oilfield Services

I feel privileged to share with you my views of the Companys
 performance during the financial year under review and some key oil and
 gas industry developments.
 
 The Indian growth story continued with a GDP growth of 9 percent in
 2007-08.  Indias GDP crossed the USD 1 trillion mark and is projected
 to feature among the top three global economies by 2050.
 
 Sustaining the growth momentum requires energy security, and much needs
 to be done in that area given the current scenario. Currently, India
 imports 80 percent of its crude oil requirements, putting a huge strain
 on its forex reserves and increasing the current account deficit.
 
 Import content could go as high as 90 percent in the next 20 years
 without significant augmentation of domestic hydrocarbon supply. This
 imperative triggered the governments NELP regime and resulted in a
 drive for searching fresh hydrocarbon reserves. Over 162 blocks were
 awarded in the last seven years and 57 blocks are up for award in NELP
 VII.  With the recent discoveries in Rajasthan and Cauvery basin, there
 is much excitement about hydrocarbon discoveries, driving increased
 investments in exploration-related activities. Seismic data acquisition
 - the mainstay of the Company is a major activity in this space.
 
 The year 2007-08 was a momentous one. Your Company won two major orders
 during the year, taking the peak order book to Rs 140 cr.Your Company
 also strengthened its balance sheet considerably, with fund infusion
 from a private equity player (Samara Capital).  We successfully
 completed our first 3D project and are gearing to bid for more such
 ventures in the coming year. We also entered the upstream business with
 an investment in Ensearch Petroleum Ltd, which has a participating
 interest in 10 blocks spread over four countries. Our employee strength
 increased significantly and we opened a new office in Delhi, which
 facilitates an interaction with clients, regulators and vendors.
 
 Revenues of the Company grew by 73% to Rs. 47.93 cr for FY 2007-08 (15
 months).  The Company achieved an EBDITA and PAT of Rs. 17.05 cr and
 Rs. 9.62 cr, respectively.
 
 We ended the year with a robust order book that provides us visibility
 for the next 12 months. As I look forward, I perceive challenges, but
 we are well on our way to consolidate ourselves as an established
 oilfield support services player in India.
 
 I take this opportunity to thank you all for your consistent support
 and patronage. I would also like to sincerely thank our customers,
 employees, suppliers, financers and other business associates for their
 support to the Company, and look forward to your continued assistance.
 
 Sincerely,
 
 Krishna Kant
 Executive Chairman
 Asian Oilfield Services Limited