Trends in Barite Trends in Barite ConsumptionConsumption

Oilfield ApplicationOilfield Application

Average Rig CountAverage Rig Count

2005 2004 2003 20022005 2004 2003 2002

US 1324 1190 1032 831US 1324 1190 1032 831 Canada 465 369 372 266Canada 465 369 372 266 Int. 870 836 770 732Int. 870 836 770 732 Total 2659 2395 2174 1829Total 2659 2395 2174 1829

Fine Grind BariteFine Grind Barite

Particle Size ComparisonParticle Size Comparison

MICRONMICRON

d90 d50 d10d90 d50 d10

API 70-73 15-20 1-2API 70-73 15-20 1-2

Fine Grind 42-48 8-10 .5-1.2Fine Grind 42-48 8-10 .5-1.2

Fine Grind BariteFine Grind Barite

Applications Applications

• Extended Reach Extended Reach WellsWells

• Coiled Tubing Coiled Tubing DrillingDrilling

• TTRD WellsTTRD Wells• HTHP wellsHTHP wells

Advantages of Fine GrindAdvantages of Fine Grind

Ability to formulate low viscosity Ability to formulate low viscosity fluidsfluids

Minimize ECDMinimize ECD Minimize Barite SagMinimize Barite Sag Utilization of finer screens on solids Utilization of finer screens on solids

control equipmentcontrol equipment

Alternative Weighting MaterialsAlternative Weighting Materials

Type TonsType Tons Hematite 30KHematite 30K Ilmenite 20KIlmenite 20K MicroMax 5KMicroMax 5K

MicromaxMicromax

General PropertiesGeneral Properties

Density: 4.8 gm/ccDensity: 4.8 gm/cc Composition: Manganese TetroxideComposition: Manganese Tetroxide Particle size: 1-2 micron d50Particle size: 1-2 micron d50 By product from Manganese By product from Manganese

smelting plants in Norwaysmelting plants in Norway

Spherical shape vs. crystalline Spherical shape vs. crystalline

Trends in Drilling FluidsTrends in Drilling Fluids

Finer Grind materials (Sag)Finer Grind materials (Sag) Increased Environmental RegulationsIncreased Environmental Regulations Norway, US, UK, SE. Asia, AfricaNorway, US, UK, SE. Asia, Africa Synthetic Fluids, zero dischargeSynthetic Fluids, zero discharge Recycling of expensive fluids Recycling of expensive fluids