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1 DRK OILTOOLS

2 Incorporated April 2011 Product design for shoes, collars and casing attachments performed during initial months of incorporation in addition to sourcing and qualifying of suppliers and sub-contractors Moved into new sq. ft. manufacturing facility and offices in May 2011 Began manufacturing product and building inventory with first sales in September 2011 Install manufacturing equipment and support equipment December 2011

3 In-house product design, manufacturing, assembly and inspection combined with utilization of subcontract processors of DRK designed components meeting DRK'S quality requirements. This policy allows DRK to provide high quality low cost products in a highly competitive environment.

4 QUALITY POLICY The Policy and Objective of the Quality Management System implemented at DRK by the Management of DRK is to provide competitive, reliable product that meets or exceeds the requirements of DRK s customers and industry specifications. Specific objectives DRK s Quality management system is to provide products and service that meet or exceed the requirements of API Q1, API Specification 5CT seventh edition October 1, 2001 (ISO 11960:2001), API Specification 10D sixth edition March 2002 (ANSI/API10D/ISO ), ) and/or customer specifications as it applies to the design, manufacture and service for casing and tubing accessories.

5 ISO certification achieved March 2012

6 API Licensing July CT license casing and tubing accessories 10D license bow spring centralizers

7 Licensing certified for two separate premium threading lines for the threading of Box and Pin threads for casing and tubing connections, in July 2012 and January 2013 respectively.

8 HSE POLICY DRK intends to demonstrate the company s commitment to a strong Safety, Health and Environment program. The protection of our staff, our property, the environment and those affected by our operations will be addressed in a considerate and professional manner. Every employee is entitled to a safe work environment, free from any unreasonable risk and hazards that could result in injury/illness. DRK s Safety, Health and Environment Policy shall be in accordance with accepted industry standards and in compliance with applicable legislative requirements. Th i l t f ll l i i d t li i t d ll The involvement of all employees is required to eliminate any and all hazards that create unreasonable risk of any nature and an ongoing reduction of losses resulting in injury or illness to any employee or other person or property from such incidents.

9 PRODUCT RANGE Float shoes, float collars and guide shoes 2 7/8 30 Inner string cementing shoes and collars 9 5/8 30 Hydraulic and mechanical stage collars 4 ½ 14 3/8 Casing Floatation systems Welded centralizers 2 3/8 30 bow spring, rigid, semi rigid, liner and turbolizers Solid centralizer products for liner and reduced annulus applications Stop collars, cable wall scratchers, cement baskets 2 3/8 30 Marker collars, cement plugs, crossovers, specialty equipment Cementing heads, single and double

10 FLOAT EQUIPMENT RECOMMENDED TEST STANDARDS API RP 10F CATEGORY I, II, III CAT I 2000 PSI 8 HOURS CAT II 3000 PSI 12 HOURS CAT III 5000 PSI 24 HOURS 12 LB/GAL. MUD WITH 1-2% MESH SAND CATEGORY A, B, C A 200 DEG F. 8 HOURS 2000 PSI B 300 DEG F. 8 HOURS 3000 PSI C 400 DEG F. 8 HOURS 5000 PSI

11 VALVE TESTING Category III Flow Testing

12 FLOAT EQUIPMENT Two valve sizes offered 2 ½ and 3 1/3. All components PDC drillable Valves offer maximum flow area Spade noses, bull noses and eccentric nose optionally available Phosphate coated threads to prevent corrosion and reduce galling during makeup High strength expansive filler material to retain valve in shoe and collar Equipment for elevated temperature (250 Deg. C.) available and differential pressure across valve to 69Mpa Inner String in both stab-in and Stab-in Latch in available. Wide range of options to meet application specific operating conditions.

13 FLOAT EQUIPMENT DOUBLE VALVE SHOES INNER STRING EQUIPMENT BULLET, SPADE AND ECCENTRIC NOSES

14 CENTRALIZERS Unique convex shaped bow springs provides superior spring retention rates and high centering forces- bow springs cross section is formed to conform with the drilled hole. Negligible loss on spring diameter after completion of API testing procedure Internally formed hinges prevents hinges from opening under high loads Reinforced collars through incorporation of stiffening ribs to retain collar shape Unique alloy spring material-specifically designed for maximum spring strength and compatibility with welding process Plated corrosion resistant hinge pins with double locking feature Welded design for superior strength in high load applications, joint strength between springs and collars 3-4 times higher then non-weld centralizer. Welded W d design offers increased annular clearance at point where the springs are fastened to the collars.

15 CENTRALIZATION PRODUCTS SERIES 100 BOW SPRING CENTRALIZERS USED IN VERTICAL TO DEVIATED WELLBORES USED WHEN WELLBORE IS OVER GAUGE TO UNDER GAUGE IDEALLY MOUNTED OVER A CASING COUPLING OR OVER A SINGLE STOP COLLAR, NEVER MOUNT BETWEEN TWO STOP COLLARS OR ALLOW TO FREE FLOAT ON THE CASING

16 CENTRALIZATION PRODUCTS SERIES 102 SEMI RIGID or SEMI POSITIVE CENTRALIZER USE FOR DEVIATED AND HORIZONTAL APPLICATIONS GOOD FOR SLIGHTLY OVER GAUGE TO SLIGHTLY UNDER GAUGE HOLE +/- 15% HIGHER RESTORING FORCE, LOWER RUNNING FORCE THEN SERIES 100 CENTRALIZER MOUNT OVER COUPLING OR OVER LINER TYPE STOP COLLAR

17 CENTRALIZATION PRODUCTS SERIES 104 CLOSE TOLERANCE LINER CENTRALIZER USED FOR REDUCED ANNULAR CLEARNCE APPLICATIONS WHERE ANNULAR CLEARANCE IS LESS THEN 14MM SERIES 122 FLUTED STAND-OFF BAND REQUIRES IN EXCESS OF 10 TONNES TO DEFORM UPSETS USE IN LINER OVERLAPS AND OPEN HOLE CONSOLIDATED FORMATIONS OUTSIDE DIAMETER IS 6-7M SMALLER THEN HOLE SIZE NOT AS EFFECTIVE IN SMALL ANNULAR CLEARANCE APPLICATIONS SERIES 125 HD RIGID CENTRALIZER SAME CHARACTERISTICS AS SERIES 122 HIGHER STRENGTH

18 CEMENTING PRACTICE TO ACHIEVE GOOD CEMENT JOB: PLUG, LAMINER, AND TURBULENT FLOW: TO ACCHIEVE TURBULENT FLOW ANNULAR VELOCCITY SHOULD BE 80 METERS PER MINUTE CENTRALIZER SPACING DEPENDENT UPON FINAL FLUID DENSITIES WHEN FLOW CANNOT BE ACHIEVED, THEN ADDITIONAL CARE MUST BE USED IN DETERMINING TYPE OF CENTRALIZERS AND SPACING USE DIFFERENT TYPE OF CENTRALIZERS ON SAME CASING STRING TO ACHIEVE DESIRED RESULTS ROTATION OR RECIPROCATION OF CASING WILL PROMOTE GOOD CEMENT PLACEMENT USE PRE-FLUSH THAT FILLS 300 METERS OF THE ANULLUS

19 CENTRALIZER PLACEMENT Centralizer recommendation and placement. DRK uses Jukvam Wold and Wu formula for 1D, 2D and 3D wellbore trajectories. Calculate on stand-off, running forces (hook loads) to determine spacing along entire casing string.

20 CENTRALIZER PLACEMENT

21 CENTRALIZER PLACEMENT

22 STAGE COLLARS Single internal sleeve with positive locking mechanism upon closing. Anti-rotation locks for all internal tool components that are contacted by the drill bit during drill out operations. Short tool length minimizes bending effect in highly deviated well bores. Field adjustable settings incorporated in the design of the hydraulic stage collar to facilitate last minute adjustments when unforeseen down hole conditions change.

23 STAGE COLLARS No Drill Stage Collar Plugs sets for different Two stage cementing applications

24 CASING BUOYANCY SYSTEM CBS The DRK Oiltool s Casing Buoyancy System (CBS) is used for lessening the weight of the casing string as it is lowered into the well bore. Archimedes's principle is applied to casing in a well, with casing weight being lessened by having air inside the casing rather then fluids. The CBS is comprised of a float shoe with a pressure tight bullet nose, standard float collar, floatation collar, special bottom cementing plug and standard top cementing plug.

25 DRK OILTOOLS CO. LTD. Over 3300 Pieces of float equipment, stage collars, plugs and casing accessories manufactured and sold from start of manufacture to Jan Product sold to and used in China, Russia Eithopia, Angola, Nigeria, Gabon, Columbia, Nigeria, Columbia, Canada, Kazakastan, United Kingdom.

26 DRK OILTOOLS CO. LTD. Privately owned and operated Innovative product design Comprehensive quality control Responsive customer service High quality low cost products

27 DRK OILTOOLS CO. LTD. Contacts Sales: Technical: Head office Singapore, with main Manufacturing in Tianjin China and sales and support in Edmonton, Canada

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