Atlas Copco Oil and Gas Rigs. The Predator Advantage

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1 Atlas Copco Oil and Gas Rigs The Predator Advantage

2 Atlas Copco Drilling Solutions Leading supplier globally of rotary drilling equipment Three manufacturing locations Garland, Texas, USA Nasik, India Opened in 2007 Nanjing, China Opened in 2008 Two support locations Distribution Center in Allen, Texas Opened in 2006 Aftermarket Center in Garland, Texas Opened in 2008 ISO 9001 & ISO registered

3 Atlas Copco Worldwide Sales & service Production sites Drilling Solutions sites

4 Predator Drilling System New drilling system for 6,000 10,000ft depth in oil & gas

5 Drilling System A 950 HP hydraulic top drive drilling system Vertical, directional and horizontal holes with mud and/or air 100-ton hook load capacity with 25-ton pulldown Mast and substructure Certified API 4F, 3 rd edition A three-component package designed and built in Texas A mobile, self-contained drill rig A substructure and rig support system A hydraulic pipe skate Service and support from the Atlas Copco global network Availability of complete rig packages and wet rig up with training Ongoing factory training and support capability

6 Mobile Rig A self-contained, single-load, 5-axle custom carrier Single deck-mounted engine 950 HP for drilling Hydrostatic carrier drive 500 HP for driving 1 ft front / 3 ft rear overhang Weight and Dimensions Length 46 ft 2 in Width 8 ft 6 in Height 14 ft 2 in Weight 115,000 lb

7 Hydrostatic Drive Hydrostatic Drive Full torque at any speed Highway speed to 62 mph Dynamic braking system Replaces Jake Brake Creep Mode off-road system Front/rear ramp angles over 12 Full-width cab with great visibility and amenities Specifications 500 HP hydraulic motor 8-speed transmission with clutch 44,000 lb twin steering axle set 69,000 lb tridem rear axle set - all rear axles powered with lockers

8 Hydraulic System Power = Performance Individual drilling functions have the power to maximize performance The driller puts the power where it s needed, when it s needed The power to maintain performance in the most demanding conditions Built in safety systems to help avoid component damage Hydraulic Circuits Fast feed and rotation psi Normal feed psi Auxiliary functions psi Substructure psi Engine fan psi Hydraulic cooler psi Charge pump for feed psi

9 The Hydraulic System Smart Design = Longevity Quality components are more reliable and more efficient Separate circuits reduce downtime Less impact if one pump fails Isolates contamination Simplifies troubleshooting Improves drilling performance Predator maintains safe rig operating limits the driller focuses on drilling production Uses smart design to maximize performance

10 The Hydraulic System Efficiency = Lower Cost Eliminating Power Loss Larger hoses and valves Manifold technology Shorter, direct hose routings Better cooling and filtration Variable displacement pumps Large hydraulic tank Benefits Reduced fuel consumption Simplified maintenance and diagnostics Less heat generation and pressure drop Longer lasting components Lower operating cost

11 The Drill Enclosure Sheet steel rig deck enclosure Hinged panels with locking handles Gas shocks for effortless handling Keeps components cleaner Controls air flow to improve cooling Reduces sound emissions Easy access for routine maintenance and service

12 The Mast & Feed Carriage A strong, simple design Rectangular structural steel tubing Fewer welded joints High-strength cross members Licensed API 4F, 3 rd edition 100t hook load plus safety factor Tested at full extension with maximum hoisting force and torque Designed to perform under the most rugged drilling conditions Specifications Tubing - Mast & Carriage 20 in x 4 in Mast length retracted 46 ft 2 in Mast length extended 73 ft 0 in Testing FEA & strain gauge testing at full load

13 Rotation System Tip out design for pipe handling Hands-free pipe handling with the Predator pipe skate Supports up to 8,000 lb x 30 ft long pipe or collar at up to 45 degrees Tip out lock in vertical position Multiple spindle sub designs Broad application capability Solid sub with saver sub Rotation lock device and/or floating sub Specifications Tip out Max load at 45 Spindle ID Swivel pack Load rated 0-90 degrees 8,000 lb 5 in. Cartridge, Chevron rpm

14 Control System CANbus control system maximizes efficiency and energy use System updates itself 50 times/sec to provide fast, accurate responses Built-in diagnostic programs reduce down time and enhance safety Automatic safety systems help prevent component damage or abuse Real time information is provided to the driller on the console display drilling parameters and system status

15 The control system monitors rig parameters and performs corrective action before a major failure Critical parameters like cooling and over pressure control are automatically performed by the system so the driller can focus on drilling Learning to operate the rig is quick and simple

16 Our Diagnostics for CanBus

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18 Substructure Self-contained, single load Rapid deployment and rig up Strong structural base for the rig 10 ft clearance for BOP stack Hands-free breakout system 44 in. with main bushing removed 17 1/2 in master bushing ISO / SAE stairways, catwalks, railings

19 The Transport and Rig Up Easy guide rig alignment on sub Self-centering lifting fixtures Single control elevates the rig Self-locking lifting legs Remote pendant control for sub Single electrical power hook up Ground-level air/mud hook up Quick-lock mast pinning Weight and Dimensions Length 49 ft 0 in Width 11 ft 0 in Height 11 ft 1 in Weight 85,000 lb

20 Rig Elevation System Four-point rig elevation system lifts the rig off the suspension and then elevates the rig and upper deck to the drilling position Self-locking leg design Smooth, stable lift, keeping the rig level Remote control no people on the sub Built in rig alignment system assures the rig is centered and over the lift points

21 The Breakout System Features and Benefits Standard oil field design Off the shelf components Travels in place no rig up Wide range of pipe and casing sizes Easy to change bowls and inserts Hydraulic Slips 150 ton capacity 2 7/8 13 3/8 in diameter range 17 1/2 in master slip assembly Operated from driller s console Components readily available Almost no manual labor

22 Floor Crane THE BIGGEST WORK-SAVER ON THE RIG Self-rigging mounted on the sub Up to 22 ft reach 360 pivot Covers the whole work floor Positions over hole center Performs all work floor rig up tasks Lifts on the floor or off the ground Cordless remote control operation Automatic no-bump crown guard Specifications Max hoist capacity Cable Max 14 ft reach Max 22 ft reach Hook 7,000 lb 3/8 in dia. 4,200 lb 2,500 lb Safety hook

23 Self-contained, single load Rapid deployment and rig up Virtually hands-free pipe handling Range II or Range III drill pipe Range II or Range III casing Two sets of fold-out pipe racks Racks adjust to roll-on or roll-off Hydraulic clamp spin-on or spin-off Wireless remote control Pipe Skate Weight & Dimensions Length 54 ft 6 in Width (transport) 8 ft 6 in Width (deployed) 47 ft 11 in Height 4 ft 6 in Weight 40,000 lb Specifications & Capacity 2 7/8 8 in diameter pipe and collars 4 1/2 24 in diameter casing 8,000 lb maximum weight 4,000 ft-lb clamping force Up to 60 pcs. 4 1/2 in pipe on both racks

24 Pipe Skate Using Range III drill pipe saves time and money 8,000 ft of Range II pipe = 267 joints 8,000 ft of Range III pipe = 200 joints Reduced pipe changes 67 joints Time saved drilling in 2 hours Time saved tripping out 2 hours Total time saved 4 hours Range III drill pipe also saves manual labor and enhances crew safety Specifications & Capacity 2 7/8 8 in diameter pipe and collars 4 1/2 24 in diameter casing 8,000 lb maximum weight (30 ft length) 4,000 ft-lb clamping force Up to 60 pcs. 4 1/2 in pipe on both racks

25 Rigging Up - 3 loads - 3 steps - 2 hours Drill Substructure

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28 Pipe Handling Advantage PREDATOR Hydraulic slips Hands free Iron roughneck Hands free Top drive Hands free Spins pipe and casing Top drive Hands free Torques pipe to spec. Pipe skate Hands free Lay down rig Hands free Nobody in the mast CONVENTIONAL RIG Manual slips Manual tongs required Spinning chain 2 crew required 2-3 crew 1 crew required manual labor Hydraulic spinner 1 crew manual labor Elevators 2 crew manual labor Standing pipe 2-3 crew manual man in the mast

29 Applications Drilling pre-sets for deeper wells the Mixed Fleet Approach Predator drills and cases surface and intermediate holes One Predator supports several deep rigs A quick, cost effective way to start drilling on a lease -Drilling 6,000 to 10,000 ft wells from the surface to TD Exploration and production wells Conventional oil, gas and CBM Unconventional gas deposits Vertical, directional or horizontal Mud or under balanced / air High pressure DHD air drilling -Service and support from the Atlas Copco global network -Pre-delivery rig up and training at the factory

30 Predator testing in WV with Dallas Morris Drilling performed for H&G Energy. This was a 6 hole pad with hole depth to Predator was moved onto location and drilling commenced. Top portion was drilled with 12 hammer and 12 ¼ bit DMD crew drilled down to 3400 and set 9 5/8 casing to bottom. After cementing drilling continued with 8 hammer and 8 ½ bit. The lower portion was drilled to a depth of 6000 Hole was back filled with 9 lb mud and a 14 lb mud plug before moving to next hole. Project Summery Top hole was drilled in hrs, ROP was ft per hr. Fuel consumption averaged 6 GPH. Lower portion was drilled in hrs, ROP was ft per hr. Fuel consumption averaged 7-8 GPH. Average string weight at 6000 was around 142,000 lbs. BHA consisted of 1-8 spiral collar and 6-6 collars, along with hammer. Support equipment consisted of IR air packs and 2 Aerial boosters. After 3 rd hole, logging was suspended due to low deviation over total depth of hole. Currently H&G is clearing another pad due to performance of Predator

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34 The Drilling System A three-component package built in Garland, Texas Mobile, self-contained drill rig Substructure and rig support system Hydraulic pipe skate Using new technology and innovation to improve production, reduce cost and enhance safety

35 We are committed to your superior productivity through interaction and innovation.

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