1. HydroPull™ June 2010 All rights reserved

2. 2 HydroPull ™ Water Hammer Valve Self-piloted flow cycling valve generates water hammer pulses that vibrate the coil u Features –Pulls coil into the well –Enhances weight transfer while milling –Low pressure differential – under 300 psi –Compatible with motors, jetting tools or logging tools –Compact length –Nitrogen compatible –High-temperature u Benefits –Extends coil reach –Faster milling when weight is limited –Faster hole cleaning – shorter wash time –Well stimulation U.S. Patents 6,237,701 and 7,139,219

3. 3 Water Hammer Pulse Sequence

4. 4 2.88-inch HydroPull™ Kit

5. 5 1.69-inch HydroPull™ Kit Bullhead Nozzle HydroPull™ Debris Screen

6. 6 HydroPull™ Specifications Diameter 1.69" (43 mm) 2.12” (54 mm) 2.88” (73 mm) Connected length with screen sub 40.01” (1016 mm) 43.55” (1106 mm) 58.70” (1491 mm) Connections1” AMMT1-1/2” AMMT 2-3/8” PAC-DSI (mod) Design flow rate 1.0 - 1.6 bpm (160 - 250 lpm) 1.2 - 1.8 bpm (190 - 290 lpm) 2.5 - 3.5 bpm (400 - 550 lpm) Average pressure differential 360 – 720 psid (2.5 – 5.0 MPa) 360 – 720 psid (2.5 – 5.0 MPa) 300 - 500 psid (2.2 – 3.5 MPa) Pulse cycle rate 8 – 12 Hz10 – 15 Hz6 – 12 Hz Traction force 1300 – 2000 lbf (600 – 900 daN) 2300 – 3000 lbf (1000 – 1300 daN) 2200 - 3200 lbf * (1000 - 1400 daN) * Standard tool configuration; High- and Low-Impact configurations also available

7. 7 High Temperature Multi Fluid Sour gasAll H 2 S compatible materials Max. temperature 400°F (200°C) Fluid compatibility Clear fluids: water, 1% acid, 3% KCl, scale dissolvers, frac oil 28% acid capable tools are available in the 1.69” and 2.13” sizes Gas compatibility Multiphase with fluid: air, carbon dioxide, nitrogen

8. 8 HydroPull™ Extended Reach Action

9. 9 Extended Reach Case History u Apache CO2 Injection Well Williston Basin –6.1-in dia. 3300-ft horizontal openhole u Objective: run to TD with 1.5-in coil –RIH at 1.3 bpm, 20 to 30 ft/min –RIH Final 850 ft at 1.6 bpm, 10 ft/min –Placed solvent for overnight soak –Reentered well to TD with HydroPull™ –Lifted with commingled nitrogen/water u Lateral range extended by 850 ft (35%) –Another 300-600 ft possible

10. 10 Extended Reach (Coil Weight) Predicted Lockup 7220-ft MD 8070-ft TD with 1.69 HydroPull™ 1.6 bpm 10 ft/min feed

11. 11 Acid or Solvent Pulsing

12. 12 Extended Reach Stimulation u 2 Wells in Husky Heavy Oil Field (Lloydminster AB) u 1.69-in diameter HydroPull™ on 1.5-inch coiled tubing u Bullnose nozzle u Well #1: 1970-ft horizontal with 7-in liner –Previous attempts stopped by obstructions below 3100 ft –HydroPull™ run on1.3 bpm produced water with 15% solvent –Reached TD at 10 to 30 ft/min –Oil production increased from 44 bpd to 600 bpd u Well #2: 2950-ft horizontal with 5.5-in liner –Placed 50 cu-m water with 3% KCl and 2% MudSol –Ran in at 10 to 20 ft/hr –Production increased from 25 to 44 bpd u Stimulation operations are ongoing

13. 13 Bridge Plug Milling u 5 Well Program for Devon (McAlester, OK) –3.25 bpm with 0.5 bpm bypass though MGS –5500-ft, 5.5” horizontals, MD 13,000-ft –8 plugs in each well –2.88-inch diameter BHA, Tricone mill –MGS™/Agitator/Motor/Mill: 40 min/plug –HydroPull™ /MGS™/Motor/Mill: 8 min/plug, surface vibration too intense –MGS™/HydroPull™/Motor/Mill: 15 min/plug, surface vibration OK, –2 plugs milled with nitrogen & water u Other Successful Jobs –SEECO (Southwest Energy) –Ultra Resources HydroPull™ MGS™

14. 14 Marcellus Shale Wells u 5 Well Program for Talisman (Marcellus Shale, NY) –5000 to 6000-ft, 5.5” horizontals, MD 12,000-ft –Horizontal inclined up to 95 degrees –High wellhead pressure and sand flow on last HydroPull™ well –13 to 15 plugs in each well –2.88-inch diameter BHA: HydroPull/Motor/Mill 2.7 bpm u 31 plugs milled with HydroPull / 37 milled with beads and chemicals –Plug milling time in heel of well reduced from 60- to 36-min. –Plug milling time in toe of well reduced from 147- to 36-min –Eliminated high cost of beads and friction reducing chemical –Operator “very impressed with tool” u Tool issues –Bladed bits produce oversize cuttings when run with HydroPull™ »Use FB instead of Dragtooth mill –Coil bulge and wear in tapered coil »Avoid tapered coil »Cut coil if the kink is bad. –O-ring failure in disconnect »Tools must be in good condition

15. 15 Milling Case History Summary u HydroPull™ enhances weight transfer while milling –Large reductions in plug milling time –Most improvement at the toe of the well –Outperforms NOV Agitator –Eliminates high cost of friction reducing beads and chemicals –Works with nitrogen and Motor Gas Separator (MGS™) u Tool is reliable –Care is required with coil connections –Use less aggressive bits

16. 16 Damage Removal/Cleanup

17. 17 Applications u Extended Reach Bridge Plug Milling –More than 6000 ft is possible with 2” coil –Upper limit is not known u Extended Reach Well Stimulation –Solvent or chemical placement –Acidizing with 1.69-in Hastelloy tool or with a circulating valve u Other –Fishing –Valve milling –Gravel pack placement –Ceramic disk removal –Cementing –Coiled tubing drilling