USR DRILLING SERVICES CO. WLL. !"#$%&'(#!%") #%) - PowerPoint PPT Presentation

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6-%)67)+$7 ! USR Drilling Services Co. wll (USRD) was initially incorporated in the Kingdom of Bahrain on the 5 th of April 2005 and registered with the Ministry of Industry and Commerce as Well Flow Drilling Services Co. wll Under Commercial Registration No. 56263. With the aim of further reflecting USRD’s core competencies and exposing its key characteristics, the shareholders of Well Flow Drilling Services Co. wll changed its commercial name to USR Drilling Services Co. wll in 2009. USRD’s primary business activity is directional drilling with emphasis on Ultra-Short Radius (USR) and Short Radius (SR) applications. USRD is the only directional drilling company who provides Ultra Short Radius drilling services worldwide.

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Curve Description Table ! Curve Description Table ! Description ! Description ! Deg/100 I ! ROC ! 1400 I ! Long Radius ! Long Radius ! Long ! 3 to 4 ! + / ! - ! 1400 I ! - ! Medium ! Avg 8 ! + / ! - ! 700 I ! 700 I ! Medium Radius ! Medium Radius ! Intermediate ! Avg 19 ! 300 I ! + / - ! ! Short ! Max 100 ! + ! 57 I ! + ! 25 I ! Ultra - Short ! Max 230 ! Lateral Lengths ! Lateral Lengths ! Description ! Description ! Length ! Intermediate Radius ! Intermediate Radius ! 300 I ! Long ! +/ ! - ! 24000’ ! +/ ! - ! Medium ! +/ ! - ! +/ ! - ! 12000 I ! Short Radius ! Short Radius ! Intermediate ! 6000 I ! + / - Short ! + / - 2000 I ! Ultra Short ! + / - 600 I ! Ultra ! - ! Short Radius ! Ultra Short Radius ! 57 I ! 25 I ! 0 ! 0 ! 0 ! 25 I ! 57 I ! 300 I ! 700 I ! 1400 I !

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-!,#%$!(+*)-!.-*!.-#, ! ! 2010-2011 Completed first two wells in Indonesia for Citic Seram. Recently completed a second well for Pertamina Java EP. Currently developing new generation Titanium Drillpipe. First USR well to be drilled in Gabon for Perenco mid 2011. ! 2009 Completed 7 well campaign for Oxy Oman, Safah field. Drilled a World Record well with a Reach to Radius Ratio of 25 to 1. ! 2007 - 2008 First USR well completed with articulated and rotatable sand screen “SnakeScreen™. Acquired TDP with two designs improvements built in. ! 2007 Developed USR mud motors to reduce drillpipe RPM’s and to steer in thin targets. Began running a hybrid string combining S-135 and one or two joints of TDP as non-mag. ! 2006 – 2007 Drilled USR wells in Turkey and India. Replaced Composite Drill Pipe with Titanium Drill Pipe. ! 2005 - 2006 Drilled in Rima field of PDO Oman. Built 30 ft ROC fixture to test pipes to be run in USR wells. ! 2004 – 2005 Drilled multi-lateral “fishbone” wells for PDO, Oman ! 2001 - 2003 Completed five well trial successfully for PDO, Oman ! 1994 - 2001 Drilled 170 USR wells in various fields in the United States with a number of milestones: • • 2000 - First ever horizontal well drilled with air hammer • • 1999 - First ever well drilled with Titanium Drill Pipe • • 1995 - First USR well drilled Under Balanced using USRDS’s Low Cost RSS tools ! 1990 - 1994 Low cost “push-the-bit” Rotary Steerable System (RSS) developed by Amoco. More than 200 Ultra Short Radius (USR) test wells drilled at Amoco’s Catoosa Drilling Research Center.

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',$),#77$!".)f),'$?7e!".),e,#7` ! Workstring 2-7/8”, 3-1/2” or 5” Drill Pipe 5/16” Single Conductor Wireline Titanium Drill Pipe Non Mag Joint USR Drilling Assembly with Articulating Sub (UBHO Sleeve and Peewee Stinger)

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',$)&$!**!".)?+*'7)(-+!") Technical Business Value Value Increase Reduce Reduce Ultimate Drilling Drilling Recovery Problems Cost Reservoir Accelerate Exposure INCREASE Production Access ASSET Additional VALUE Volume Access Reservoir Left Behind Exploitation Oil Access Re-Enter Zero Attic Marginal or Exploration Oil Shut-in Cost Wells

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Texaco E&P Hutchinson County, TX Dual Lateral – Separate Zones North , ft. ! 500 ! 400 ! 300 ! Target Azimuth 200 ! 275 Degrees ! 100 ! 0 ! West, ft. ! -500 ! -400 ! -300 ! -200 ! -100 ! 0 ! 100 ! 200 ! 300 ! 400 ! 500 ! -100 ! 3100 -200 ! -300 ! 3150 Target Azimuth -400 ! 233 Degrees ! True Vertical Depth, ft ! -500 ! 3200 Target Formations - Brown Dolomite ! 3250 3300 3350 0 100 200 300 400 500 600 Total Departure, ft. !

Oxy USA Seward County, KS Drilled with Foam North, ft. ! 800 ! 2550 600 ! 400 ! 200 ! West, ft. ! 0 ! 2600 -800 ! -600 ! -400 ! -200 ! 0 ! 200 ! 400 ! 600 ! 800 ! -200 ! -400 ! True Vertical Depth, ft. -600 ! TARGET AZIMUTH -800 ! 2650 250 Degrees Target Formation - Lower Krider Hugoton Gas Field ! 2700 2750 0 100 200 300 400 500 600 700 800 Total Departure, ft !

Oklahoma Natural Gas Creek County, OK Gas Storage Field North, ft. ! 400 ! Target Azimuth 45 Degrees ! 300 ! 200 ! 3000 Objectives 100 ! Increased Deliverability 3050 0 ! West, ft. ! -400 ! -300 ! -200 ! -100 ! 0 ! 100 ! 200 ! 300 ! 400 ! Increased Injectivity ) -100 ! True Vertical Depth, ft. 3100 -20 0 ! -300 ! Target Azimuth 3150 225 Degrees ! -400 ! Target Formation – Sand ! 3200 3250 3300 0 100 200 300 400 Total Departure, ft.

BP-Amoco Teapot Dome, WY R'' ! Target Naval Petroleum Res. 1'' ! 2000 b'' ! c,:+>S!* ! .'' ! 2100 -'' ! &'' ! ' ! 2200 UR'' ! U1'' ! Ub'' ! U.'' ! U-'' ! U&'' ! ' ! True Vertical Depth, ft O8?+S!* ! 2300 Target Formation - Niobrara Shale 2400 Oil Show - Fracture 4.5 o dip 2500 150 250 350 450 550 650 750 850 Total Departure, ft

CHEVRON U.S.A. Kern County, California 2050 Proposed 2100 Actual 2150 Target Azimuth 140 Degrees True Vertical Depth, ft. 2200 Target Formation - Diatomite Actual 2250 2300 Proposed 2350 0 100 200 300 Total Departure, ft.