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USR DRILLING SERVICES CO. WLL.

USR Drilling Services Co. wll (USRD) was initially incorporated in the Kingdom of Bahrain on the 5th 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! Description! ROC! Long! + /!

• ! 1400I!

Medium! + /!

• ! 700I!

Intermediate! Avg 19! + / -!

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300I! Short! Max 100 ! +! 57I! Ultra - Short ! + !25I ! Lateral Lengths! Description! Long! +/!-! 24000’! +/!-! 12000I! Intermediate! + / - 6000I !

700I!

0! Long Radius! Medium Radius! Intermediate Radius! Short Radius! Ultra!

• !

Short Radius!

1400I! 300I! 25I! 300I! 700I! 1400I!

Curve Description Table! Description! Deg/100I! 3 to 4!

• !

Avg 8! Max 230! Lateral Lengths! Description! Length! +/!-! Medium! +/!-!

25I!

0! Long Radius! Medium Radius! Intermediate Radius! Short Radius!

Ultra Short Radius!

57I!

Short! + / - 2000I! Ultra Short! + / - 600I!

57I!

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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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5/16” Single Conductor Wireline Workstring 2-7/8”, 3-1/2” or 5” Drill Pipe USR Drilling Assembly with Articulating Sub (UBHO Sleeve and Peewee Stinger) Titanium Drill Pipe Non Mag Joint

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INCREASE ASSET VALUE

Business Value

Increase Ultimate Recovery Accelerate Production Access Left Behind Oil Access Attic Oil Reservoir Exploitation Reduce Drilling Cost Access Additional Volume Zero Exploration Cost

Technical Value

Reduce Drilling Problems Reservoir Exposure Re-Enter Marginal or Shut-in Wells

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Texaco E&P

Hutchinson County, TX Dual Lateral – Separate Zones

3100 3150 3200 3250 3300 3350 100 200 300 400 500 600 Total Departure, ft.! True Vertical Depth, ft!

Target Azimuth 275 Degrees! Target Azimuth 233 Degrees!

Target Formations - Brown Dolomite!

• 500!
• 400!
• 300!
• 200!
• 100!

• 500!
• 400!
• 300!
• 200!
• 100!

North, ft.! West, ft. !

• 800!
• 600!
• 400!
• 200!

• 800!
• 600!
• 400!
• 200!

North, ft.! West, ft. ! TARGET AZIMUTH 250 Degrees

Oxy USA

Seward County, KS Drilled with Foam

2550 2600 2650 2700 2750 100 200 300 400 500 600 700 800 Total Departure, ft! True Vertical Depth, ft. Target Formation - Lower Krider Hugoton Gas Field!

• 400!
• 300!
• 20

0!

• 100!

0! 100! 200! 300! 400!

• 400! -300! -200! -100!

0! 100! 200! 300! 400! North, ft.! West, ft. ! Target Azimuth 45 Degrees! Target Azimuth 225 Degrees !

True Vertical Depth, ft. 3000 3050 3100 3150 3200 3250 3300 100 200 300 400 Total Departure, ft. Target Formation – Sand!

Oklahoma Natural Gas

Creek County, OK Gas Storage Field

Objectives Increased Deliverability Increased Injectivity)

4.5o dip

Oil Show - Fracture

Target Formation - Niobrara Shale

BP-Amoco

Teapot Dome, WY Naval Petroleum Res.

2000 2100 2200 2300 2400 2500 150 250 350 450 550 650 750 850 Total Departure, ft True Vertical Depth, ft Target

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CHEVRON U.S.A.

Kern County, California

Proposed Actual

Target Azimuth 140 Degrees

Proposed Actual

Target Formation - Diatomite 2050 2100 2150 2200 2250 2300 2350 100 200 300 Total Departure, ft. True Vertical Depth, ft.

E ZONE F ZONE G ZONE D ZONE

• 700
• 500
• 300
• 100

100 300 500 700

• 700
• 500
• 300
• 100

100 300 500 700

North, ft

PHILLIPS PETROLEUM COMPANY

Ector County, Texas

Proposed Actual Proposed Actual 4350 4400 4450 4500 4550 4600 4650 4700 4750 100 200 300 400 500 600 700 800 Total Departure, ft. True Vertical Depth, ft. Target Formation – Dolomite Sequence

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PETROLEUM DEVELOPMENT OMAN

Casing Set at Top of Limestone Reservoir

Target Azimuth for Each Lateral is 122 Degrees.

K6 Unit

Dual Lateral Water Injector

• 200
• 150
• 100
• 50

50 100 150 200

• 200 -150 -100 -50

50 100 150 200 West, m South, m

1120 1130 1140 1150 1160 1170 1180 1190 1200 1210 1220 1230 1240 1250 1260 1270 1280 1290 1300

• 20
• 10

10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200

True Vertical Depth, m. Total Departure, m.

• 2
• 1

• 1
• 5

South, m West, m North, m East, m

USR KOP at 953.5 mahtbf (940.93 mtvdtbf)

Drilled Depth – 966.1 Surveyed Depth – 964.39

7” liner set at 952 mahtbf USR Target Depth 944-946 mtvdtbf

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PETROLEUM DEVELOPMENT OMAN

Psuedo Vertical Sidetrack w/USR

800 810 820 830 840 850 860 870 880 890 900 910 920 930 940 950 960 970 980 990 1000 1010 1020 1030 1040 1050 1060 1070 1080 1090 1100 1110 1120 1130 1140 1150

• 50

50 100 150 200 250 300 350 400 450 500 550 600

Total Departure True Vertical Depth

• 2
• 1

• 1
• 5

South, m West, m North, m East, m

USR KOP at 968.5 mahtbf (958.26 mtvdtbf) 7” liner set at 967.2 mahtbf (957.03 mtvdtbf) USR Target Depth 963-968.5 mtvdtbf Ending mtvdtbf – 967.69

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PETROLEUM DEVELOPMENT OMAN

Psuedo Vertical Sidetrack w/USR

800 810 820 830 840 850 860 870 880 890 900 910 920 930 940 950 960 970 980 990 1000 1010 1020 1030 1040 1050 1060 1070 1080 1090 1100 1110 1120 1130 1140 1150

• 50

50 100 150 200 250 300 350 400 450 500 550 600

Total Departure True Vertical Depth, m

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• 300
• 200
• 100

100

• 100

100 200 300 400

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6550 6600 6650

• 50

50 100 150 200 250 300 350 400 450

TVD (ft) ODE

Vertical Section (ft)

• 950
• 750
• 550
• 350
• 150

50

• 50

150 350 550 750

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6250 6300 6350 6400 6450 6500 6550 6600 6650

• 50

50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000 1050 1100 1150 1200

TVD (ft) ODE

Vertical Section (ft)

• 50

• 750
• 650
• 550
• 450
• 350
• 250
• 150
• 50

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• 50

50 150 250 350 450 550 650 750 850 950 1050 1150

TVD (ft) ODE Vertical Section (ft)

200 400 600 800 1000

• 1000
• 800
• 600
• 400
• 200

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6250 6300 6350 6400 6450 6500 6550 6600 6650 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000 1050 1100

TVD (ft) ODE

Vertical Section (ft)

• 100

100 300 500 700

• 800
• 600
• 400
• 200

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6250 6300 6350 6400 6450 6500 6550 6600 6650

• 50

50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000

TVD (ft) ODE

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6250 6300 6350 6400 6450 6500 6550 6600 6650

• 50

50 150 250 350 450 550 650 750 850 950 1050

TVD (ft) ODE Vertical Section (ft)

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Oil and Natural Gas Corportation (ONGC)

Mehsana Asset - Gujarat

• 200
• 150
• 100
• 50

50 100 150 200

• 200
• 150
• 100
• 50

50 100 150 200

North, East, m

Target Azimuth – 14° Ending Azimuth – 359.8°

N0[#N^!OQ^^TN[7! !"#$%&'(&)"*+,-'' '''./012./334'

Highly Unconsolidated Sand Completed with SnakeScreenTM

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5250 5270 5290 5310 5330 5350 5370 5390 4000 4050 4100 4150 4200 4250 4300 4350 4400 4450 4500 4550

TVD (ft) ODE Vertical Section (ft)

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CITIC Seram Energy Ltd !

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• 1500
• 1450
• 1400
• 1350
• 1300
• 1250
• 1200

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1000 1050 25 50 75 100 125 150 175 200 225 250 275

15-May -2011

PERTAMINA EP REGION JAWA 2011 USR CAMPAIGN

RDL-01 USR

ACTUAL vs. PROPOSAL Drilled Depth:1270.6m Survey Depth:1261m

NORTHING (m) EASTING (m)

Well Head Coordinates (m) : Survey Type : Tie-in : Reference Datum TVD : Kick Off Point (KOP): Curve Section ROC (BUR): Landing Point : Well TD : Ending Azimuth: Ending Inclination : N 9335618.66 E 747800.40 Actual Gyro Survey RKB Original Drill Floor Elevation

1051.00 m MD (1040.82 m ssTVD ODE)

15.50m (3.69°/m)

1085.00 m MD (1056.31 m ssTVD ODE)

1270.6 m MD(1057.06 m ssTVD ODE) 215° 88.9°

ssTVD (m) ODE Vertical Section (m)

• 250
• 200
• 150
• 100
• 50
• 140
• 120
• 100
• 80
• 60
• 40
• 20

PERTAMINA 2

MLD

W ll H d C di t ( ) N 9303393 2 E 827784 9

MLD

ACTUAL

Drilled Depth:249

Well Head Coordinates (m) : Survey Type : Tie-in : Reference Datum TVD : Top of Window: N 9303393.2 E 827784.9 Definitive Gyro Multishot RKB Original Drill Floor Elevation 2204 00 m MD (2203 85m TVD) Top of Window: Bottom of Window: Kick Off Point : Curve Section ROC (BUR) : End of 4-1/2” Section: 2204.00 m MD (2203.85m TVD) 2208.00 m MD (2207.85m TVD) 2216.00 m MD (2215.83m TVD) 21.76m (2.624°/m) 2240.00m MD (2234.49m TVD) 2200 Well TD : Ending Azimuth: Ending Inclination: 2492.20 m MD (2236.56m TVD) 195.30° 87.7° 2200 2210 2220

E

2220 2230

D (m) ODE

2240 2250

TVD

50 100

Vertic

2010 USR CAMPAIGN

D-04 USR D-04 USR

L vs. PROPOSAL

92.2m Survey Depth:2486m

• 70
• 60
• 50
• 40
• 30
• 20
• 10

G (m)

• 100
• 50

70 60 50 40 30 20 10

NORTHING

• 250
• 200
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SELMO-22 – Definitive Surveys

6550’ Well TD, 6538’ Survey Depth Revised Landing from 5975’ to 5980±5’TVD Revision Based on Cutting Samples Target Formation – Top LSD Drill Break

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PETROLEUM EXPLORTATION MEDITERANEAN, INC

DEFINITIVE SURVEY

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USR WELL PERFORMANCE

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Well Open Hole Achieved in Formation (FT) Pre USR in BPD Post USR in BPD Planned Oil Production (as per "G&G" proposal) in BOPD after USR Net Oil Increase Oil Water Oil Water 1 457 50 183 94 258 190 44 2 631 99 111 230 49.1 142 131 3 996 75 325 413 250 338 4 306 33 78 100 12.1 220 67 5 731 57 53 200 80 280 143 6 804 68 56 17 481 110 (51) 7 555 227 64 130 227 TOTAL 4480 382 806 1037 399.2 1322 723

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