«Newsco» in Russia Our company has worked in Russia in the Khanty-Mansiisk autonomus district since 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 May Our customers in Khanty-Mansiisk district: PetroAlliance Services Company Ltd. TNK – Nizhnevartovsk TNK – Samotlorneftegas OJSC Kogalymnefteprogress Company Russneft LUKOIL – Western Siberia and its companies: Drilling company «EURASIA» Slavneft – LLC Megion Drilling Company OJSC Oil Technology Overseas LLC «L-Drilling»

«Newsco» in Russia At present the Companys 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 May 2004 in the territory of Khanty-Mansiisk autonomous district Newsco has drilled: 48 directional wells 172 horizontal wells Ø 142,8 mm, including pilot and build sections of the wells Ø 215,9 mm more than 245 horizontal sidetracks Ø 124 mm. more than 31 pilot wells.

Work experience 2750m TVD; m MD; 9,5º/30m; 3 trips; 25 days (with 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: TNK-BP more than 40 wells PetroAlliance more than 150 wells LUKOil more than 120 wells Directional wells 2000 m measured depth about 12 days 3000 m measured depth about 25 days Horizontal wells 750 m measured depth about 12 days 300 m measured depth about 3 days

Safety statistics Since may 2004 there were - NO accidents at work; - NO safety-caused lost time incidents.

Personnel More than 80 qualified highly skilled drillers and more than 30 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.

Personnel All 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 motors Technical characteristics

Equipment MWD 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 tool Technical characteristics

MWD tool Performance

Equipment Newsco 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

Equipment Wireless 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? F ast rig up F ast drilling of high quality D rilling without failures P rice includes everything: no additional or hidden charges Our advantages as compared to competitors:

Contact Information Address , Russian Federation, Tyumen region, Khanty-Mansiisk autonomous district – Yugra, Nizhnevartovsk, 21 Industrial St., Building 5, West Industrial Area, Panel 11 Phones tel.: (3466) fax: (3466)