Downhole Drilling PRODUCTS Bio-Stable Drilling Fluid Fuel Maximizer

1. Downhole Drilling PRODUCTS • Bio-Stable Drilling Fluid • Fuel Maximizer

2. Nabors Drilling USA Williston, North Dakota November 2010

3. Shale tailings: Drilling head temperature +500° F The ProOne Drilling Fluid will handle these high operating temperature ranges which will help stop Hydro-Locking. Also will help reduce the friction and lower the temperature.

4. 90 barrel mixing vats with Invert Diesel drilling fluid.

5. ProOne Downhole Drilling Fluid drums emptied in to the vats. Mixing valves to load from the vats to the mud pumps.

6. Mixing the ProOne Downhole Drilling Fluid in to the cooling pumps. Results: Cooled the pumps by +30° and helped reduce fluids that were by passing the seals within hours.

7. Shale tailings and substrate chart. The shale tailings can cause up to $500,000 in repairs to the drill string. This cost can be at least cut in half, using the ProOne Drilling Fluid.

8. ROP drilling rate increases to 239’ per hour from 48’ ROP, by adding 4 drums (5%) of the ProOne DownHole Drilling Fluid to the Invert Diesel Drilling Fluid at 6,259.72’ After the ProOne Downhole Drilling Fluid is out of the system. The ROP returns to the 48’ ROP with the Invert Diesel Drilling Fluid at 8,269.42’.

10. Drums of the PODF added. ROP increase from 88.1’ to 117.2 in 19 minutes at 17799’.

11. Newfield Test Results 01/19/2011 These test results are from the last approximately 3000’ of the lateral. ProOne Downhole Drilling Fluid was mixed in the Brine at 5% and was introduced in 20 barrel sweeps as needed starting at approximately 17,700’ ….. the well finished at 20,815’. As you can see from the pictures of the Pason the torque was in the 12,000 to 13,000 range and gradually reduced to the 10,000 to 11,000 range over approximately 20 minutes after ProOne hit the bit. The pressure was at 2495 and over the same time period reduced to 2333. The Company Man for Newfield was impressed as he noticed a significant drop in torque, pull and pressure. It was also mentioned to me by a Company Man that this is the first time they have been able to complete a lateral of this length with only one mud motor and one bit….saving a trip out, a mud motor and a bit. I was on the rig floor when the Driller was pulling back in order to run a viscosity sweep and before the introduction of ProOne he was having difficulty getting the drill string and bit back to the bottom. After the introduction of ProOne to the system the problem went away…..The Driller had a smile on his face and was very happy with the performance of ProOne’s Product. PLEASE KEEP IN MIND THAT THESE RESULTS WERE ACHIEVED ONLY USING ABOUT 8 DRUMS OF PRO-ONE IN THE LAST 3000’ OF THE WELL. THE DRILLING ENGINEER WAS VERY IMPRESSED AND INCICATED TO ME THAT HE WAS GOING TO USE OUR PRODUCT ON BOTH RIGS THAT HE WAS IN CHARGE OF UNTIL SOMEONE TOLD HIM TO STOP. J. Blaine Rupp 801-803-9722

12. The attachments are results from our latest Downhole drilling in North Dakota. As you will read the recap letter you will see they have had great success drilling the lateral at 3,000 feet. They completed the 6,000’ lateral without tripping the line (removing the drill string) using the same drill bit, mud-motor and now drilling the lateral 25% faster with our ProOne Downhole Drilling Fluid. They usually will use one to two additional drill bits and mud-motors per lateral. One drill string removal will cost at least one full day to trip the line, this is done at approximately $55.00 per minute or almost $80,000 per day drilling costs. You will notice that the Rate Of Penetration (ROP = feet per hour drilled) increases from 88.1 ROP to 117.2 ROP. On this drill site they ended up at a little over 20,800 feet which is 693 - 30’ sections which are tripled together and processed at 90’ per section. That is a lot of sections (231) to trip out if a bit or mud-motor has to be exchanged out. Last week Newfield committed two additional wells full time to our products and they are currently adding additional wells.

13. Torque reductions and pressure continues to drop using the ProOne Drilling Fluid.

15. Based on the results we have seen to date in North Dakota, the following cost savings can be expected in a typical well with the use of ProOne Drilling Fluid. We have used conservative numbers that we believe are not only achievable but will in most cases be exceeded. Savings are based on a 30-day month. Savings: 20% increase in R.O.P. (Rate of Penetration) = 6 days @ $80,000 per day = $480,000 1 trip for the vertical = 1 day @ $80,000 per day = $80,000 1 trip for the lateral = 1.5 days @ $80,000 per day = $120,000 2 drill bits @ $25,000 ea = $50,000 2  mud motors @ $7,000 = $14,000 Total savings = $744,000 Product cost: ProOne product cost = 18 drums (lateral) + 50 drums (vertical) = 68 drums @ $1,925 ea = $130,000 Less replaced drill lubricant = 68 drums @ $1,200 = $81,600 Net incremental cost to use ProOne Drilling Fluid = $130,000 – 81,600 = $48,400 ROI = $744,000/$48,400 = 1537% It should be stated that conditions vary greatly and the above numbers are based on drilling 18,000+ foot wells in shale using Invert Diesel for the vertical and Brine for the lateral. We would expect that drilling in other areas under different conditions would have similar but not the same results.

16. Downhole Drilling PRODUCTS • Bio-Stable Drilling Fluid • Fuel Maximizer

17. Black smoke (opacity) causing surface field contamination for farmers and environmental concerns. When the ProOne Fuel Maximizer was added, the majority of the Black Smoke was no longer visible.

18. 399 Cat Diesel Engines: 1200 horsepower per engine 3 engines per drilling rig Each diesel engine burns Approximately 600 gallons (1800 gallons for the 3 engines) of #2 diesel fuel per day. Average savings when ProOne Fuel Maximizer was added: Approximately 9% equals 160 gallons per day per 3 diesel engines, plus emission and carbon build up reduction. The re-fueling diesel tanker arrives every other day.