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“Newsco” in Russia Our company has been working in Russia in the Khanty-Mansiysk autonomus district since 2012. Our Office, shop and lab are located in

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“Newsco” in RussiaOur company has been working in Russia in the Khanty-Mansiysk autonomus district since 2012. Our Office, shop and lab are located in Nizhnevartovsk. The Branch Office in Nizhnevartovsk was registered with the State Registration Chamber of the Ministry of Justice of the Russian Federation in March 2012.

Our customers in Khanty-Mansiysk district:

‘Bashneft – Burenie’ ‘Tekhnokom’ ‘Alyans-Service’

Our customers in Irkutsk district:

‘Standart-Oil’

Our customers in YANAO district:

‘Trans-Technology’ ‘RS-Burenie’

Our customers in Krasnoyarsk district:

‘BNGRE’ (‘Slavneft – Krasnoyarskneftegaz’)

“Newsco” in Russia At present the Company’s Branch in Nizhnevartovsk has all the Registration Documents and Permission Certificates required to provide directional drilling services.

Newsco can supply and locally service and maintain its own equipment and tools, including retrievable MWD tools, PDMs, NMDCs, surface measuring sensors, PCs and auxiliary mounting equipment.

Work experience

Since March 2012 in the territory of Khanty-Mansiysk autonomous district Newsco has drilled:

more than 50 directional wells

more than 50 horizontal wells Ø 142,8 mm, including pilot and build sections of the wells Ø 215,9 mm

more than 60 horizontal sidetracks Ø 124 mm

more than 80 pilot wells

Work experience

2750 m TVD;

2250-3116 m MD;

9,5º/30 m;

3 trips;

25 days (including reaming).

One of the drilled proposals:

Work experience

Our average well duration, including assembling BHA, tripping in and out of the hole, logging, is:

In Russia Newsco has drilled wells for the following companies:

Directional wells 2000 m MD about 12 days

3000 m MD about 25 days

Horizontal wells 750 m MD about 12 days

300 m MD about 3 days

Trans-Technology more than 80 wells

Bashneft-Burenie more than 80 wells

Slavneft more then 15 wells

RS-Burenie more than 10 wells

Tekhnokom, Alyans-Service more than 10 wells

Safety statistics

Since March 2012 there were

- NO accidents at work;

- NO safety-caused lost time incidents.

Personnel More than 30 qualified high-skilled MWD operators and more than 20 directional drillers work in our company. Canadian personnel have drilling experience in the territory of Khanty-Mansiisk autonomous district - Yugra and are familiar with peculiarities of work in Russia.

Qualified Russian MWD operators, who have extensive job experience and complete equipment base in the field, provide long-lasting and safe performance of MWD tool.

Customer's requests are taken into consideration while selecting field personnel.

Personnel Our MWD service shop in Nizhnevartovsk is staffed with qualified, well trained, and experienced technicians, who can service and test our MWD tool and all of its components, including computer equipment and provide 24 hour support for MWD field staff.

Experienced well planners work in our Company. Using modern computers and advanced software they perform their job on a very high level.

It is possible to correct well proposal during drilling in accordance with customer's requests.

PersonnelAll field personnel have certificates necessary for the job:

- trained in industrial safety in CJSC " Scientific and Research Center "Technoprogress" and certificated in Central certification commission of Russian Technical Supervisory Authority in Moscow;

- trained in LLC "Yugraprofbezopasnost" and certificated in "Well control. Well control during gas, oil and water inflow" in Russian Technical Supervisory Authority in Nizhnevartovsk;

- trained and certificated by Labour protection commission in Non-state educational establishment in KhMAO - Yugra "Labour safety center" in requirements of industrial safety for lifting devices - in CJSC "Scientific and Research Center "Technoprogress" and in Basics of Fire Safety program in LLC "Research and Development Centre "Ailant".

Equipment

Our Company uses its own positive displacement mud motors. We have a wide selection in Russia making it possible to choose a mud motor for certain conditions to achieve maximum performance preserving the quality of the well hole.

Mud motors

All motors are dynamically inspected before and after job.

Every motor sent to location is supplied with the proper documentation.

Equipment

Assembled and serviced according to ISO-9001 international standards

Have flexible configuration of speed and rotation

With fixed or adjustable bend for drilling horizontal, vertical wells and small radius sections

Tested many times in various field conditions

Easy and comfortable to service

Newsco mud motors’ advantages

Mud motorsTechnical characteristics

Outer Flow Flow Max Max diameter speed, speed, torque, bend,

Lobe Stage liters per min rounds per min Nm degreesBlack Max 4:5 3.5 379-606 114-236 922 2

95 mm 3.75" 7:8 2.3 379-606 120-121 1525 1-1.5 *National

121mm 4.75"BlackMax 4:5 4.8 1136-2271 115-292 3674 3

165 мм 6.5" 7:8 3 1136-2271 93-200 7186 3Bico 6:7 3.6 757-2271 87-192 3674 1-3 *

171 мм 6.75" 4:5 6 1136-2271 150-300 6917 3Covare

121mm 4.75"7:8 3.8 250-1000 67-130 6030 4

Dynomax 95 mm3.75" 7:8 2.3 379-606 42-122 2260 3

Configuration

7:8 462-145 23003.8 568-946

EquipmentMWD tool

For directional drilling monitoring we use MWD tool modernized by our Company. Its body is made of strong materials. Data transmission to surface goes through positive impulse – short changes of mud pressure generated by MWD tool.

Our Company constantly works on tool modernization. Some of our creations are unique. This let us achieve up to 2000 hours of MWD tool working without failures.

Equipment MWD tool

In addition to directional drilling monitoring our MWD tool provides the following surveys:

Gamma logging

Directional gamma logging (capability to measure natural radioactivity of formations in the specified direction)

Resistivity logging while drilling with tool Ø 95, 121 and 171 mm

MWD toolTechnical characteristics

Competitors Newsco now Newsco in the future

Outer diameter of MWD tool 47.6 mm (1 7/8") 47.6 mm (1 7/8") 35 mm (1 3/8")For well diameter from 95 to 311 mm from 95 to 311 mm from 88.9 to 311 mmOperating temperature from -40° to 150° С from -40° to 150° С from -40° to 180° СOperating pressure from 0 to 1352 atm up to 1360 atmFlow rate 450 - 3500 l\sec 450 - 5000 l\sec

Tolerance to sealing materials 2.8 mm (28%) solid phaseMWD tool type Various Positive impulse Positive impulseWireline retrievable Basicly no Yes YesBattery life up to 250 hrs up to 600 hrs up to 700 hrs

MWD toolPerformance

Competitors Newsco now Newsco in the futureTool face accuracy 0.98° average 0.1° 0.1°Azimuth survey accuracy ± 0.76° average ± 0.25° ± 0.25°Angle survey accuracy ± 0.13° average ± 0.1° ± 0.1°Data transfer rate up to 1 sec\pulse from 0.375 sec\pulse

Updating period 15 sec average 5.0 sec @ data transfer rate 0.375 sec\pulse

3.2 sec @ data transfer rate 0.250 sec\pulse

Time to take survey 5 minutes 100 sec @ data transfer rate 0.375 sec\pulse

80 sec @ data transfer rate 0.250 sec\pulse

EquipmentNewsco MWD tool advantages

High survey accuracy High data transmission rate which decreases survey time Works in a wide range of flow rates Enhanced reliability makes it possible to significantly decrease downtimes Wireline retrievable which decreases risks of leaving tool on well bottom

EquipmentWireless Remote Terminal

Our company uses a new wireless Rig Floor Terminal. Data from wireless RT to MWD computer is transmitted by radio modem.

This helps to save time for rig up, as there is no necessity to lay cable from rotary table to the office shack.

New wireless Rig Floor Terminals are water resistant with a built-in heater, which makes it possible to use RF terminals outside in any weather conditions.

Why “Newsco” is the right choice? Our Company has first time success due to:

Qualified personnel with great drilling experience in Russia and abroad

Reliable mud motors

Highly reliable MWD tools providing long work, survey accuracy and high speed data transmission

Stable and field tested software

Faster rig up and faster drilling save time.time saved = money saved

Why “Newsco” is the right choice?

Fast rig up

Fast drilling of high quality

Drilling without failures

Price includes everything: no additional or hidden charges

Our advantages as compared to competitors:

Contact InformationAddress

628609, Russian Federation, Tyumen region, Khanty-Mansiisk autonomous district – Yugra, Nizhnevartovsk, 21 Industrial St., Building 5, West Industrial Area, Panel 11

Phones

tel.: (3466) 310-151 fax: (3466) 310-150

E-mail

[email protected] [email protected]

[email protected]