www.Thuslick.com

Email – Sales@Thuslick.com

281-477-0611

Houston, Texas

IntroductionIntroduction What is Thuslick? What is Thuslick? Who is Thuslick?Who is Thuslick? Case Histories.Case Histories.

Patented Technology

Field ServiceWorldwide Distribution

CharacteristicsCharacteristics

Description of Thuslick.Description of Thuslick. Where does it work best?Where does it work best? Why does it work?Why does it work?

BenefitsBenefits

100% Non-Toxic.100% Non-Toxic. Remains effectively stable in temperatures > Remains effectively stable in temperatures >

700700oo C C.. Significantly minimizes Torque & FrictionSignificantly minimizes Torque & Friction.. Reduces Filtrate APAT (Reduces Filtrate APAT (HTHPHTHP).). ReducesReduces Fluid Loss into the formation. Fluid Loss into the formation. Does not affect the Rheology.Does not affect the Rheology. Reduces overall drilling costs.Reduces overall drilling costs.

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Additional BenefitsAdditional Benefits

Effects on Filtrate.Effects on Filtrate. Return Permeability.Return Permeability. Non Toxic.Non Toxic. Thuslick Manual.Thuslick Manual.

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Laboratory ReportsLaboratory Reports

IMP ReportIMP Report Stillmeadow ReportStillmeadow Report Westport Report Westport Report Mud Tech – PEMEXMud Tech – PEMEX Oil Tech Particle SizingOil Tech Particle Sizing

RecommendationsRecommendations

MI SWACO - VenezuelaMI SWACO - Venezuela Pride Pride ForamerForamer The Brief ReportThe Brief Report MI - U.S.MI - U.S. EgyptEgypt PhillipsPhillips

How To OrderHow To Order Thuslick Inc. – Sales OfficesThuslick Inc. – Sales Offices

USA – HoustonUSA – Houston Mexico – Zona Norte – ReynosaMexico – Zona Norte – Reynosa Mexico – Zona Marina – Mexico D.F.Mexico – Zona Marina – Mexico D.F. Venezuela – MaracaiboVenezuela – Maracaibo Nigeria - LagosNigeria - Lagos

sales@Thuslick.comsales@Thuslick.com (281) 477-0611(281) 477-0611

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What is What is THUSLICKTHUSLICKTMTM

THUSLICKTM is a Micronized, Silicone Coated Graphite is a Micronized, Silicone Coated Graphite powder with average particle size of +-24 micronspowder with average particle size of +-24 microns..

Packaged in sacks of Packaged in sacks of 25Kg (55Lb)25Kg (55Lb) THUSLICKTM is completely inert in the mud system. is completely inert in the mud system. Remains stable in temperatures > 700Remains stable in temperatures > 700oo C C Compatible with WBM or OBM. Compatible with WBM or OBM. THUSLICKTM is 100% Environmentaly Safe.is 100% Environmentaly Safe.

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Patented Silicone Application

Micronized GraphiteParticle

Who is Who is THUSLICKTHUSLICKTMTM

THUSLICKTM is a product that is manufactured is a product that is manufactured and distributed by Thuslick Inc. of Houston Texas and distributed by Thuslick Inc. of Houston Texas to all global markets.to all global markets.

The core products originate from Mexico.The core products originate from Mexico. Core products are received in Houston then Core products are received in Houston then

blended in a Patented process. blended in a Patented process. Once processed the product is bagged in 55Lb Once processed the product is bagged in 55Lb

sacks and labeled for shipment.sacks and labeled for shipment.

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Case HistoriesCase Histories

USUSAA

AngolAngolaa

ArgentinArgentinaa

DenmarDenmarkk

NorwaNorwayy

VenezuelVenezuelaa

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MexicoMexico

MexicoMexico  North Mexico Mission Field

       Operator was drilling at 2963 meters. The drilling rate was approximately 3 Mts. an hour with very high torque, causing the rotary to stall at times. The hole was also very tight on connections.   The well was on day 117 and they already had four sidetracks. The angle of the sidetrack was 36.9 degrees. And the flowline temperature was 140 degrees F. hole size was 6" with 1678.66 Mts. Of 7" casing set.

The operator had decided to abandon the hole whenit was decided as a last resort to add Thuslick™ to the oil mud system.       The operator added 6 ppb of Thuslick™ to the mud and torque started to come down as soon as Thuslick™ went around the bit.  Drag and torque were reduced and the drilling rate increased to 10 to 15 Mts. A short trip was made at 3142 Mts. And no drag was encountered.  Lost circulation was encountered at 3148 Mts. And the mud weight was reduced from a specific gravity of 1.6 5 to 1.4 Circulation was reestablished and drilling resumed at 3 to 4 mph, increasing to 7 mph. This rate continued to T.D of 3400 Mts. with no further hole problems.

The penetration rate increased over 150% after the addition of Thuslick™.

       The operator drilled 6" hole to 4100 Mts. and began trying to log. Casing was set at 2670 Mts. and the bottom hole temperature was 175 degrees C. Logs were run to bottom with no problem but drag was so bad coming out of the hole that was impossible to log the well.

       The Operator added 9 ppb of Thuslick™ to the open hole volume of the drilling mud, and spotted it in the open hole. The drag was eliminated and the well was logged successfully.

  Central Mexico

       Drilling at a depth of 5751 Mts. with a polydrill mud system well began experiencing torque running from 460 to 600 amps. This well was being

drilled using 4.5" drill pipe with 6" drill collars, and 8 3/8" hole size a decision was made to add Thuslick™ in a concentration of 4.5 ppb.   The torque dropped immediately from 450 amps to 200 amps and remained

there.    The fluid loss dropped from 11cc’s to 6.0 cc’s, and the penetration rate increased 27%.

       At 18995' the operator decided to core. Coring took place with 450 amps and they cut two and a half meters of core at 18 minutes per meter.

The operator was very happy with the increased drilling rate,lower fluid loss, and reduced torque and drag.

  North Mexico Argos Field

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USAUSAThis well was drilled with oil base mud to the top of the Anadarko, a thick and very hard limestone formation.

BEFORE THUSLICK AFTER THUSLICK

Marathon Rep. On site: Sam Nabors

Rig: Bayard # 46

Location: Grady County, Oklahoma

Date: February 23, 1998

Field: Carter Knox

Well: Mitchell # 2-34

Complete Circulation: 7 Hrs

Bottoms up: 2 Hrs

Mud Volume: 1800 bbl

Mud Weight: 10.5

Weight on bit 7K to 8K(Metal Cutting in mud)

Rate of Penetration 1 ft/hr

Torque: 125 psi to 150 psi

Rotating weight 242k

Slackoff weight: 190K

Pick up weight 325K

Metal cutting in mud: Nil-Trace

Weight on bit: 12K – 13K

Rate of Penetration 2 to 4 ft/hr

Torque: 75 psi

Rotating weight: 242K

Slackoff Weight: 220K

Pickup Weight: 300K

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AngolaAngolaMud Company: Dowel

Subject: Thuslick™ Test

Location: Block 2, Angola

Date: November 30, 1997

Operator: Texaco Panama Inc.

Well:  RAIA 3H

Thuslick™ was added initially at the amount of 4 ppb over one circulation. After one circulation measured depth was 8922 ft. and the hole angle was 47 degrees.

The average rate of penetration BEFORE Thuslick™ was added was 18 ft / hr and the torque was 450 to 475 amps.

AFTER the addition of Thuslick™, sliding started at a rate of 22-23 ft / hr with 450 amps.

Drilling and sliding continue with the angle building to 77 degrees by the time a bit trip was made at 9919. Ft. During this interval, ROP increased to 43-45 ft/hr with the torque increasing to 500 amps. Toward the end of this interval, ROP dropped back into the 20-23 ft/hr range with the torque increasing to 550 amps.

       After the trip, when drilling and sliding resumed at 8834 ft MD, ROP started at 23 ft/hr with 500 amps and gradually increased by 10000 ft to 40+ ft/hr with still 500 amps and only 6 to 10 amp fluctuation. At this point the angle was approximately 80 degrees and building.

       Overall the penetration rate was excellent and torque leveled off at around 500 amps. Drilling continued to 10480 where a 7" liner was run with no problem. The hole angle was 90 degrees at this point.

       The 7" liner was drilled out with a 6" bit and 3-1/2" drill pipe. Drilling and sliding continued over the next 500 ft at an average penetration rate of 17 ft/hr with 440 to 450 amps. Drilling of the horizontal section is continuing at this time at a depth of 12,700 ft with 470 amps and no problems.

Report written by Jim Saxon  -  Mud Engineer

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VenezuelaVenezuelaComparison with Wells VLG-3854 AND VLG-3844

BLOCK VII AREA 8

Field: CEUTA FIELD

WELL: VLG-3857

Due to problems such as drag, high torque, bit balling and low ROP in the 12- 1/4" section in the Ceuta Field Block VII, Area 8, and the elimination of the use of the VASSA LP-90 Mineral Oil from the formulation because of environmental concerns, MI and Foramer de Venezuela (Pride) decided to use the product called Thuslick™ in conjunction with the liquid lubricants (VEN-LUBE + LUBE 100) in the 12 1/4 phase of the VLG-3854 and VLG-3857. All problems previously exposed were reduced utilizing a concentration between 4 and 5 ppb of Thuslick™ and 1.7% to 2.28% (6-8 ppb) of the liquid lubricants in the system.

1.65Caustic Soda

4.00Thuslick™

3.86Ven Lube

0.826Lime

0.09XCD

1.89Ventrol

0.10Mix II

0.70Lube 167

2.35CaCo3

3.14Lube 100

0.60Dril Kleen

1.40SP 101

0.54Pac R

4.45Asphasol

3.13Tannathin

7.72Spercene

4.31Gel

143.69Barite

Concentration PPBProducts

COMMENTS

       Drilled 12 1/4" hole from 4500 ft to 6000 ft with ADL fluid, pumping viscous pills every 200', we displaced ADL for Lignosulfonate mud at 6000 ft and drilled from 6000 ft to 14,485 ft. Short trips were made from 7154 ft to 4480 ft with drag of 30 to 40 Klbs and, from 9981 ft to 6969 ft we did not encounter any problems. From 11,980 ft to 10,105 ft with drags of 40 to 60 Klbs, from 13,975 ft to 11,396 ft Pipe was pulled free with pump and rotation from 13,066 to 11,424 ft. The concentration of Thuslick™ was increased from 4 to 5 ppb to solve the drag problem. The 12 1/4" hole was TD at 14,720 ft. Caliper log was run to 11,950 ft. without any problems. 9-5/8 casing was run without problems.

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DenmarkDenmark

The operator was very pleased with the performance,and has included Thuslick™ in

future mud programs for the development program.

Operator was drilling a horizontal sectionin a North Sea development project.

       With about 300 meters of horizontal hole drilled, the operator began to experience severe drag and torque, and metal shavings appeared in the cuttings. Thuslick™ was added to the

water based mud system at this point. Torque came down immediately, and stabilized at a figure 15 Kft.lbs. for the rest of the well. Metal shavings disappeared at once and the cuttings

have remained free of metal shavings since. The well was drilled to T.D. (and additional 1600 meters) without further problems.

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ArgentinaArgentina Operator was drilling an extended reach welloffshore to onshore in Tierra del Fuego.

The well was drilled to 1800 Mts. where the curve was built to 90 Degrees. Drilling continue to 5580 Mts. where 9-5/8" casing was run and cemented.

The casing shoe was drilled and Thuslick™ was added to the mud to relief torque problems.

The concentration of Thuslick™ was 4.8 ppb.

BEFORE adding Thuslick™the operator was sliding at a rate of 5 to 10 Mts. per

Hour.

AFTER adding Thuslick™the sliding rate increased to 18 to 20 Mts. per Hour

with a bit weight of 5 to 18000 pounds.

       The normal coefficient of friction in the area is .20 to .25with the addition of Thuslick™, the coefficient of friction was reduced to .13 to .17.

The operator felt that Thuslick™ was very successful in this application.

Rotary drilling resumed, and the Thuslick™ increased to 5.5 ppb. Drilling rates were 66 Mts. Per Hour with a torque 25 to 28 thousand foot pounds. The well was drilled to T.D. at 6450 Mts. The final angle of this well was 91 Degrees.

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NorwayNorwaySubject: Thuslick™ Test

Location: North Sea - Eldfisk Alpha

Date: 10/11/2000

Operator: Phillips Petroleum Co.

Well: 2/7A-22

       When drilling 8.5" section on Eldfisk Alpha well no. A-22 excessive drag and torque were experienced. This caused severe directional problems as steering and sliding became more and more difficult. Thuslick™ was added twice in 50 bbl pills with 4 PPB concentration, but with little or no improvement in sliding. When pills returned to surface we found that Thuslick™ plugged the screens. On the VSM 300 shakers we were running 240 as bottom screens to take out the majority of drilled chalk form the mud to keep mud weight as low as possible. As the pill of Thuslick™ returned screens were plugged and we had to change to 120 mesh screens to avoid losses. As a total of 400 lbs Thuslick™ was added to a circulation system of 1000 bbl it was not really expected to see any positive effect from these two Thuslick™ pills. A couple of days later severe losses were encountered and we could not keep up with mixing mud. As reservoir pressure is extremely low form depletion, an inexpensive mud of drill water with polymer normally used. Due to severe mud losses, we now changed to seawater only, without any additives. Losses leveled off at 200bbl/hr. while circulation at a rate of 800 bbl/hr. Now high and erratic torque was experienced, and Thuslick was added to the seawater.

CONCLUSION: Conclusions drawn from using Thuslick™ when drilling 8.5" chalk reservoir section was very positive and contributed greatly in completing the section as planned.

Positive findings:Adding Thuslick™ had an immediate effect on drilling parameters. Torque was significantly reduced an made it possible to continue drilling to target. The reduced torque also resulted in increased ROP (Rate of Penetration), with less WOB (Weight on Bit). Even when we stopped adding Thuslick™ for some time, the torque remained low, indicating that Thuslick™ had successfully added a lasting coating in the well bore and casing.

It is beyond any doubt, that Thuslick™ was extremely efficient in this application,and it may well have been one of themain contributors in TDing the well as per plan.

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Description of ThuslickDescription of Thuslick

1. Starts with a micronized graphite particle.

2. It is blended with Silicone and other additives utilizing a unique patented process. 3. Once processed the blended particles work mechanically in the mud, similar to ball bearings between the drill pipe and the formation.

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Where does it work best?Where does it work best?

Directional Turn

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Area of HTHP

Why does it work?Why does it work?

Lubricates the well bore at High Torque and Drag areas.

Continues lubricating to the end even in temperatures > 700700oo

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RHEOLOGYRHEOLOGYEffectEffects ofs of Thuslick to the Rh Thuslick to the Rheeologyology

(Mud(Mud KCL/GYP KCL/GYP ))

0

10

20

30

40

50

60

70

80

90

Constant Pressure lb/100 ft.2

3 6 100 200 300 600

VISCOSIMETRO Fann RPM

Field Mud

+ 4ppb LUBE A

+ 4ppb THUSLICK

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FILTRATEFILTRATE APAT (HTHP) APAT (HTHP)EFFECTEFFECT OF OF THUSLICK IN THE MUD KCL/GYP THUSLICK IN THE MUD KCL/GYP

0

5

10

15

20

25

30

H.T.H.P. API Fil. Filtercake

Field Mud

FM + 4ppbTHUSLICK

Fil

trate

(m

l)

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EffectEffects ofs of THUSLICK THUSLICKTMTM to the filtrate APATto the filtrate APAT

0

20

40

60

80

100

120

0 min 1 min 3 min 10min

20min

30min

Base Mud

BM +3ppbThuslick

filtrate in ml.

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Westport Technology Center RETURN PERMIABILITY TEST RESULTS

MUD FILTRATE RETURN PERMEABILITY TEST RESULT MUD DAMAGE ASSESTMENT Initial Pressure Build - Up

MUD Return Perm. mD Perm. At final or Vis.cp Surface Perm mD During Mud Filtrate InjectionInitial After Mud loss PV at 79 Tension Injection @ PV INJECTED

Ki Filtrate, Kf % Injected 1/sec dynes/cm Direction,K2 1 2 3 4 5 6A 374.2 261.8 30.0 2.35 63.6 408.7 2.7 3.6 4.2B 331.1 69.9 79.9 5.16 43.9 344.1 7.5 9.7 12.1 12.1 12.9C 320.1 170.5 46.7 2.56 38.3 340.9 2.3 3.2 3.5 6.5D 352.7 174.6 50.5 1 6.26 46.6 338.0 2.1 5.4 6.8 7.8

352.7 72.5 79.4 3352.7 50.6 85.7 6352.7 41.3 88.3 8

E 403.6 124.8 69.1 1 3.16 52.5 428.4 3.3 6.2 7.2 8.5403.6 66.6 83.5 3403.6 60.2 85.1 4403.6 49.2 87.8 6

F 370.5 270.6 27.0 5.31 39.2 391.5 3.6 5.8 6.0 5.9G 368.9 258.7 29.9 1.6 58.7 354.0 1.4 1.8 1.9 2.1 4.2 4.6

OIL BASED MUDSSyn 521.8 395.7 24.2 2.5 27.0 505.0 1.2 1.4 1.5 1.7 3.7 3.9

S+TS 430.8 411.6 4.5 3.1 27.0 445.3 2.1 3.4 4.7 5.9 10.2 11.1

MO 486.0 350.9 27.8 7.2 27.1 475.7 1.1 1.2 1.2 1.3 2.6 2.7

MO+TS 590.7 336.0 43.1 7.84 25.1 593.7 1.2 1.4 1.5 3.2 3.4 3.5

Viscosities and surface tension w ere measured at room temperature

WTCI-96-125, June 1996Return

EFICIENCYEFICIENCY of the Additive of the Additive@80 C in OBM @80 C in OBM withwith 296 psi of pressure 296 psi of pressure

0

5

10

15

20

25

30

35

40

3% Lub. Liq.A

5% Lub. Liq. A

3% Lub. Liq.B

5% Lub.Liq.B

1.1% THUSLICK

1.7% THUSLICK

% T

orq

ue

Red

uct

ion

Lubrication Metal to Rock (Nucleo de Arenisca)

% Reduction of TorqueReturn

LUBRICITY COMPARISONLUBRICITY COMPARISON EEffectffects of Temperature to the additivess of Temperature to the additives

0

10

20

30

40

50

60

BASE MUD @20C

BASE MUD @80C

ASPHALT @20C

ASPHALT @80C

GILSONITE @20C

GILSONITE @80C

THUSLICK @20C

THUSLICK @80C

Concentration: 6ppb Base Polimerica

% R

ed u

ctio

n o

f T

orq

ue

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