1. THE FIRE SUPPRESSION SYSTEM Sponsored by Chevron Texaco DI - 105 Drilling Engineering Association August, 22, 2002 Houston, texas

2. Principal Investigators: Preston L. Moore - President, Formation Preservation Inc. Robert D. Grace - President, GSM, Inc. Bobby J. Cudd - President, Otis Pressure Control

3. Objectives: Save lives Protect equipment Reduce insurance cost Protect the environment Reduce operating costs

4. FIRE SUPPRESSION SYSTEM BOP DRILLING CROSS BRADEN HEAD FSS SPOOL FIRE SUPPRESSION PUMP

5. The Fire Suppression System “ Could Prevent This”

6. 40 Bbl/min External Source

7. Test Facility

8. 1 MMcfd

9. 1.2 Bpm - 2 Bbl

10. References: Water Sprays Suppress Gas-Well Blowout Fires April 29, 1985 Oil & Gas Journal

11. References: Oil Well Fire Control System Patent 4,899,827 February 13, 1990 Douglas Poole

12. References : Fire Suppression Apparatus For Well Drilling Patent 5,992,544 November 30, 1999 Formation Preservation Inc.

13. References: Fire Suppression System For Well Drilling Patent Pending Cudd, Grace & Moore

14. Milestones : Kick - off Meeting, Jan. 2003 6 - months: * Literature search * Prototype design * Semi-annual meeting

15. Milestones: (Cont’) 1 - year * Working prototype * Partial mass - flow database * Annual meeting

16. Milestones: (Cont’) 18 - months * Semi-annual meeting * Mass - Flow Correlation Complete / Member Participation

17. Milestones: (Cont’) 24 - months * Annual meeting * Verification testing of Prototype and mass flow Correlation. * Commercialization

18. Deliverables: Kick - off meeting 6 month reporting meetings Literature search Working prototype Instrumentation

19. Deliverables: (Cont’) Mass flow water/gas ratio Correlation Exclusive to members for 5 Years after commerialized. Otis pressure control Otis pressure control to Commerialize

20. Budget 2 - Year Project YEAR 1, 5 MEMBERS @ 80k Year 2, 5 members @ 40k 600k Total Budget

21. Contact Information Bob Cudd Otis Pressure Control P.O. Box 787 Woodward, OK 73802 Tel: 580-256-9999 Fax: 580-256-9966 cuddco@pldi.net