DRILLING BARGE SS AMEQ CASPIAN SEA

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DRILLING BARGE SS AMEQ CASPIAN SEA Convert Two Conventional Drilling Barges, Re- design and re-build to MODU DWF Specifications SS GRE Caspian MODU 1 and SS GRE Caspian MODU DWF reactivation; 6-8 months to market Drilling while Floating for water depth 2 ft to 400 ft Scheduled for delivery Second Quarter 2010 Naval Architects finalizing designs Highly qualified rig crews US made equipment

SS AMEQ CASPIAN SEA General Description: Operating Water depth 2 ft 400 ft Drilling while floating capable Rated Drilling depth: 30,000 ft BOP 10,000 PSI, Mud pumps (3) 1600 hp The drilling and marine equipment will be new or rebuilt to as new All long-lead equipment is secured Availability of resources and equipment Estimated completion 2nd quarter 2010 Detailed planning and engineering complete Computer Controlled Mooring system 4 AXIS Large Deck Space

DETAILED ENGINEERING General Arrangements drawings are completed Detailed engineering capacity secured Zentech Inc, Houston Derrick substructure and drilling systems engineering is completed Main system electrical is completed and drawings for modifications are completed Global strength and stability analysis, and weight engineering and control is completed Increase Hull displacement to increase Variable Deck Load, provide The ability to Drill While Floating, water depth; 2ft 400ft and increased deck space

CONSTRUCTION WORK Construction management team in place with substantial experience Selection of contractor for the electrical installation is made Selection of contractor for the completion of living quarters has been selected All major equipment secured Environmental analysis conducted Support vessels located

EQUIPMENT (NEW) New equipment: Mooring/ Positioning system Computer controlled, 4 AXIS (LASER) All equipment in compliance with regulations in US Gulf of Mexico, Russian Federation and GOST Electrical equipment package Drilling string Deck cranes Drill floor handling equipment includes iron rough neck Drillstring handling equipment BOP handling equipment 4 main diesel generators 2 Emergency/ Standby generators Drilling Derrick includes provision for pipe handling system and top drive Handling equipment BOP stack Drillstring/ Heave compensator Draw-works Rotary table Traveling Block Mud Pumps Motors for mud pumps and draw-works Top drive

ALL USED EQUIPMENT WILL BE REBUILT AS NEW Re-built Rotary Table New Mud pumps New Drill string compensator New Diesel generators New Top Drive

APPENDIX SS AMEQ Caspian SEA planned technical spec. Management Ship yard

SS AMEQ CASPIAN SEA TECHNICAL SPECIFICATION General: Rig design: GRE Built Original 1981 Water depth: 2 ft to 400 ft Drilling depth: 30,000 ft Living quarters: 60 men Variable Drilling Load: 3,000 kips Main power: 4 Caterpillar 3512 B 1475 hp Mooring / Positioning system: 4 point single drums system with Computer controlled 4 AXIS (Laser) positioning system, 8 anchors Cranes: 2-50 ton capacity, 2-15 ton capacity

RIG INVENTORY Drawworks: Continental Emsco C-3 3000 hp 1 1/2 line w/ Elmagco 7838 brake, 3 GE 752 Traction mtrs. Derrick: Pyramid 157 ft cantelever Hook Load: 1,500,000 lb Crown Block :Pyramid 8 sheave, 600 ton Traveling Block: Continental- Emsco 7 sheave, 750 ton Hook: Byron Jackson 5750, 750 ton Top Drive: 500 Ton AC VFD Swivel :Oilwell PC 650, 650 ton Rotary Table: Continental Emsco 37.5 IND Power : 4 Caterpillar 3512 Gensets, 1,100 KW Prime, 1,476 HP,60 HZ, 600 VAC, 1,200 RPM Ross Hill SCR w/ AC VFD for Top Drive Mud Pumps: (3) PZ-11 Gardner Denver 1,600 HP Mud Control: Shakers: 3 Derrick Flowline cleaners De sander : Derrick 3 cone x 12 De silter: Derrick 20 cone x 4 Agitators: 6 Lighting 10 hp De gasser: Swaco Vacuum type Well Control : 13-5/8 5,000 psi Annular w/ 10k bottom flange (H2S TRIM) 13-5/8 10,000 psi Double Ram BOP w/ (H2S TRIM) 13-5/8 10,000 psi Single Ram BOP w/ (H2S TRIM) 10,000 psi Choke and Kill Manifold w/ (H2S Trim) Diverter: 29-1/2 Accumulator: Type 80 7 station w/ 2 remotes Cranes: 2 50 ton capacity/ 2 15 ton capacity Instrumentation: Electronic Drilling Recorder, monitors all Drilling parameters w/ 4 monitors, camera system, gas detector, PVT, etc. Classification: Drilling Barge MODU DWF Drilling Depth capacity: 30,000 ft Minimum Draft : 2ft Maximum Draft: 7 ft Key Dimensions: (After deployment to the Caspian) Barge Length: 270 ft Barge Width: 130 ft Barge Depth: 14 ft Moon Pool: 8ft x 50ft In Transit Height: 48 ft Barge Deck to Rotary Beams: 24.5 ft Storage Capacities: Liquid Mud: 1,900 bbl Bulk Storage: 3,300 cu.ft Sack Storage: 10,000 sks Drill Water: 3800 bbl Fuel Oil: 758 bbl Potable Water: 750 bbl Quarters; 100 men capacity w/ galley, recreation room, offices Drill string 22,000 ft, 5 inch, grade S-135 Kelley, subs, slips, elevators, etc. Drill collars: as required

DRILL BARGE CONVERSIONS 10

Schedule of Events Dock Rig and transfer to the land side for modifications and repairs. Blast entire hull to sp-2.5 Thickness gauges the hull to determine the extent of shell plate to be replaced. Remove the Derrick and transport to the blast yard for de greasing and Blasting for inspection. Survey all piping systems and refit all systems to bring back to original specifications Megger all cables and circuits Make repairs as necessary to restore systems to original condition Remove all electric motors for reconditioning Refurbish quarters and galley Accomplish steel repairs as necessary to bring the Rig back to original specifications Layout side shells to accept new pontoons and install receivers Manufacture new Pontoons as per spec Transport pontoons to the rig and check attachments points upon successful attachment remove pontoons and set Aside for Painting. Upon completion of hot work sand sweep the hull and the pontoons apply a three coat epoxy system. Reinstall derrick and all necessary equipment Launch rig and prepare for tow Load out Pontoons for tow

Existing Outboard Profile