Thuslick Email – Sales@Thuslick 281-477-0611 Houston, Texas

1. www.Thuslick.com Email – Sales@Thuslick.com 281-477-0611 Houston, Texas

2. Patented Technology Worldwide Distribution Field Service Introduction • What is Thuslick? • Who is Thuslick? • Case Histories.

3. Characteristics • Description of Thuslick. • Where does it work best? • Why does it work?

4. Benefits • 100% Non-Toxic. • Remains effectively stable in temperatures > 700o C. • Significantly minimizes Torque & Friction. • Reduces Filtrate APAT (HTHP). • Reduces Fluid Loss into the formation. • Does not affect the Rheology. • Reduces overall drilling costs. Report Report Report Report Report Report Report

5. Additional Benefits Report Report Report Report • Effects on Filtrate. • Return Permeability. • Non Toxic. • Thuslick Manual.

6. Laboratory Reports • IMP Report • Stillmeadow Report • Westport Report • Mud Tech – PEMEX • Oil Tech Particle Sizing

7. Recommendations • MI SWACO - Venezuela • Pride Foramer • The Brief Report • MI - U.S. • Egypt • Phillips

8. How To Order • Thuslick Inc. – Sales Offices • USA – Houston • Mexico – Zona Norte – Reynosa • Mexico – Zona Marina – Mexico D.F. • Venezuela – Maracaibo • Nigeria - Lagossales@Thuslick.com (281) 477-0611 END

9. Micronized GraphiteParticle Patented Silicone Application What is THUSLICKTM • THUSLICKTM is a Micronized, Silicone Coated Graphite powder with average particle size of +-24 microns. • Packaged in sacks of 25Kg (55Lb) • THUSLICKTM is completely inert in the mud system. • Remains stable in temperatures > 700o C • Compatible with WBM or OBM. • THUSLICKTMis 100% Environmentaly Safe.Return

10. Who is THUSLICKTM • THUSLICKTM is a product that is manufactured and distributed by Thuslick Inc. of Houston Texas to all global markets. • The core products originate from Mexico. • Core products are received in Houston then blended in a Patented process. • Once processed the product is bagged in 55Lb sacks and labeled for shipment.Return

11. Mexico USA Norway Venezuela Angola Argentina Denmark Case Histories Return

12. Mexico Return

13.        At this point 7" casing was set and the oil base mud was changed for water base mud. The well was drilled out with 5-7/8" bit. When the customer decided to use Thuslick™ they were experiencing high torque, drag, low penetration and metal cutting in the mud. They also were making coring runs and had gone to a diamond bid. Well: Mitchell # 2-34 Field: Carter Knox Date: February 23, 1998 Location: Grady County, Oklahoma Rig: Bayard # 46 Marathon Rep. On site: Sam Nabors Pick up weight 325K Pickup Weight: 300K Slackoff weight: 190K Slackoff Weight: 220K Rotating weight 242k Rotating weight: 242K Torque: 125 psi to 150 psi Torque: 75 psi Rate of Penetration 2 to 4 ft/hr Rate of Penetration 1 ft/hr Weight on bit: 12K – 13K Weight on bit 7K to 8K(Metal Cutting in mud) Metal cutting in mud: Nil-Trace Mud Weight: 10.5 Mud Volume: 1800 bbl Bottoms up: 2 Hrs Complete Circulation: 7 Hrs USA Return

14. Well:  RAIA 3H Operator: Texaco Panama Inc. Date: November 30, 1997 Location: Block 2, Angola Subject: Thuslick™ Test Mud Company: Dowel Thuslick™ was added initially at the amount of 4 ppb over one circulation. After one circulation measured depth was 8922 ft. and the hole angle was 47 degrees. The average rate of penetration BEFORE Thuslick™ was added was 18 ft / hr and the torque was 450 to 475 amps.AFTER the addition of Thuslick™, sliding started at a rate of 22-23 ft / hr with 450 amps. Angola Drilling and sliding continue with the angle building to 77 degrees by the time a bit trip was made at 9919. Ft. During this interval, ROP increased to 43-45 ft/hr with the torque increasing to 500 amps. Toward the end of this interval, ROP dropped back into the 20-23 ft/hr range with the torque increasing to 550 amps.       After the trip, when drilling and sliding resumed at 8834 ft MD, ROP started at 23 ft/hr with 500 amps and gradually increased by 10000 ft to 40+ ft/hr with still 500 amps and only 6 to 10 amp fluctuation. At this point the angle was approximately 80 degrees and building.       Overall the penetration rate was excellent and torque leveled off at around 500 amps. Drilling continued to 10480 where a 7" liner was run with no problem. The hole angle was 90 degrees at this point.       The 7" liner was drilled out with a 6" bit and 3-1/2" drill pipe. Drilling and sliding continued over the next 500 ft at an average penetration rate of 17 ft/hr with 440 to 450 amps. Drilling of the horizontal section is continuing at this time at a depth of 12,700 ft with 470 amps and no problems.Report written by Jim Saxon  -  Mud Engineer Return

15. WELL: VLG-3857 Field: CEUTA FIELD BLOCK VII AREA 8 Comparison with Wells VLG-3854 AND VLG-3844 Products Concentration PPB Barite 143.69 Gel 4.31 Spercene 7.72 Tannathin 3.13 Asphasol 4.45 Pac R 0.54 SP 101 1.40 Dril Kleen 0.60 Lube 100 3.14 CaCo3 2.35 Lube 167 0.70 Mix II 0.10 Ventrol 1.89 XCD 0.09 Lime 0.826 Ven Lube 3.86 Thuslick™ 4.00 Caustic Soda 1.65 Venezuela COMMENTS       Drilled 12 1/4" hole from 4500 ft to 6000 ft with ADL fluid, pumping viscous pills every 200', we displaced ADL for Lignosulfonate mud at 6000 ft and drilled from 6000 ft to 14,485 ft. Short trips were made from 7154 ft to 4480 ft with drag of 30 to 40 Klbs and, from 9981 ft to 6969 ft we did not encounter any problems. From 11,980 ft to 10,105 ft with drags of 40 to 60 Klbs, from 13,975 ft to 11,396 ft Pipe was pulled free with pump and rotation from 13,066 to 11,424 ft. The concentration of Thuslick™ was increased from 4 to 5 ppb to solve the drag problem. The 12 1/4" hole was TD at 14,720 ft. Caliper log was run to 11,950 ft. without any problems. 9-5/8 casing was run without problems. Due to problems such as drag, high torque, bit balling and low ROP in the 12- 1/4" section in the Ceuta Field Block VII, Area 8, and the elimination of the use of the VASSA LP-90 Mineral Oil from the formulation because of environmental concerns, MI and Foramer de Venezuela (Pride) decided to use the product called Thuslick™ in conjunction with the liquid lubricants (VEN-LUBE + LUBE 100) in the 12 1/4 phase of the VLG-3854 and VLG-3857. All problems previously exposed were reduced utilizing a concentration between 4 and 5 ppb of Thuslick™ and 1.7% to 2.28% (6-8 ppb) of the liquid lubricants in the system. Return

16. Operator was drilling a horizontal sectionin a North Sea development project.       With about 300 meters of horizontal hole drilled, the operator began to experience severe drag and torque, and metal shavings appeared in the cuttings. Thuslick™ was added to the water based mud system at this point. Torque came down immediately, and stabilized at a figure 15 Kft.lbs. for the rest of the well. Metal shavings disappeared at once and the cuttings have remained free of metal shavings since. The well was drilled to T.D. (and additional 1600 meters) without further problems. Denmark Return

17. BEFORE adding Thuslick™the operator was sliding at a rate of 5 to 10 Mts. per Hour.AFTER adding Thuslick™the sliding rate increased to 18 to 20 Mts. per Hourwith a bit weight of 5 to 18000 pounds. Rotary drilling resumed, and the Thuslick™ increased to 5.5 ppb. Drilling rates were 66 Mts. Per Hour with a torque 25 to 28 thousand foot pounds. The well was drilled to T.D. at 6450 Mts. The final angle of this well was 91 Degrees.        The normal coefficient of friction in the area is .20 to .25with the addition of Thuslick™, the coefficient of friction was reduced to .13 to .17. The operator felt that Thuslick™ was very successful in this application. Argentina Operator was drilling an extended reach welloffshore to onshore in Tierra del Fuego. The well was drilled to 1800 Mts. where the curve was built to 90 Degrees. Drilling continue to 5580 Mts. where 9-5/8" casing was run and cemented. The casing shoe was drilled and Thuslick™ was added to the mud to relief torque problems. The concentration of Thuslick™ was 4.8 ppb. Return

18. Well: 2/7A-22 Operator: Phillips Petroleum Co. Date: 10/11/2000 Location: North Sea - Eldfisk Alpha Subject: Thuslick™ Test Norway It is beyond any doubt, that Thuslick™ was extremely efficient in this application,and it may well have been one of themain contributors in TDing the well as per plan.        When drilling 8.5" section on Eldfisk Alpha well no. A-22 excessive drag and torque were experienced. This caused severe directional problems as steering and sliding became more and more difficult. Thuslick™ was added twice in 50 bbl pills with 4 PPB concentration, but with little or no improvement in sliding. When pills returned to surface we found that Thuslick™ plugged the screens. On the VSM 300 shakers we were running 240 as bottom screens to take out the majority of drilled chalk form the mud to keep mud weight as low as possible. As the pill of Thuslick™ returned screens were plugged and we had to change to 120 mesh screens to avoid losses. As a total of 400 lbs Thuslick™ was added to a circulation system of 1000 bbl it was not really expected to see any positive effect from these two Thuslick™ pills. A couple of days later severe losses were encountered and we could not keep up with mixing mud. As reservoir pressure is extremely low form depletion, an inexpensive mud of drill water with polymer normally used. Due to severe mud losses, we now changed to seawater only, without any additives. Losses leveled off at 200bbl/hr. while circulation at a rate of 800 bbl/hr. Now high and erratic torque was experienced, and Thuslick was added to the seawater.CONCLUSION: Conclusions drawn from using Thuslick™ when drilling 8.5" chalk reservoir section was very positive and contributed greatly in completing the section as planned. Positive findings:Adding Thuslick™ had an immediate effect on drilling parameters. Torque was significantly reduced an made it possible to continue drilling to target. The reduced torque also resulted in increased ROP (Rate of Penetration), with less WOB (Weight on Bit). Even when we stopped adding Thuslick™ for some time, the torque remained low, indicating that Thuslick™ had successfully added a lasting coating in the well bore and casing. Return

19. Description of Thuslick 1. Starts with a micronized graphite particle. 2. It is blended with Silicone and other additives utilizing a unique patented process. 3. Once processed the blended particles work mechanically in the mud, similar to ball bearings between the drill pipe and the formation. Return

20. Directional Turn Area of HTHP Where does it work best? Return

21. Why does it work? Lubricates the well bore at High Torque and Drag areas. Continues lubricating to the end even in temperatures > 700o Return

22. RHEOLOGYEffects of Thuslick to the Rheology(MudKCL/GYP ) Return

23. Return FILTRATE APAT (HTHP)EFFECT OF THUSLICK IN THE MUD KCL/GYP

24. Return Effects of THUSLICKTMto the filtrate APAT

25. WTCI-96-125, June 1996 Return Westport Technology Center

26. EFICIENCY of the Additive@80 C in OBM with 296 psi of pressure Lubrication Metal to Rock (Nucleo de Arenisca) % Reduction of Torque Return

27. LUBRICITY COMPARISONEffects of Temperature to the additives Return