When Every Run CountsTM

The performance-driven PDC bit company

UNITED STATES CORPORATE 420 Throckmorton Street | Suite 1110 | Fort Worth, Texas 76102 | +1 817 293 7555

© Ulterra 2012. All Rights Reserved. | Ulterra is a registered trademark of Ulterra.

w w w. u l t e r r a . c o m

Ulterra is dedicated to maximizing the efficiency of oil and gas drilling operations through the use of cutting edge steel and matrix PDC bits and innovative application technologies. Throughout the world’s drilling basins we are building our reputation on proven

performance. When every run counts, let us show you how we can improve your drilling efficiencies and lower your costs.

When Every Run CountsTM

®

An ESCO® Oil & Gas Company

®

An ESCO® Oil & Gas Company

At Ulterra, we didn’t necessarily set out to become what a widely

respected oilfield research company christened the industry’s

“fastest growing drill bit company.” Then again, when you culti-

vate an organization around the cornerstones of credibility, client

responsiveness, flexibility, cost-saving technologies and custom-

ized solutions that are delivered faster than anyone else, it’s only

natural that clients take notice.

We’ve made promises in our vision to give the oil and gas industry

a different kind of drill bit company. A company that never follows

a one-size-fits-all approach. A company that puts a premium on

creativity. A company with the intrinsic agility and expertise to

quickly engineer a PDC bit solution tailored for your specific ap-

plication. A company where reliability and consistency are givens

and performance is paramount. A company like Ulterra.

Ulterra has the flexibility to react quickly to current industry and

technology trends. For you, that means faster and longer drilling,

lower cost-per-foot and reduced non-productive time (NPT) in the

most daunting applications. It also means having the assurance of

working closely with an innovative and performance-driven com-

pany when every run counts.

When Every Run Counts

Ulterra designs and manufactures high-performance PDC

bits and downhole tools for the global oil and gas industry.

The Ulterra Advantage • Fastandeffectivecustomerresponse• Modernmanufacturingfacilities• Consistentquality• PDCbitsthatdelivermorefootage,faster• Includestheindustry’smosttalentedPDCbitexperts• Latestengineeringtoolsforcost-effectiveapplications

®

An ESCO® Oil & Gas Company

2011Ulterra named “the fastest growing drill bit company” in 2011 Oilfield Market Report

When Every Run Counts

2011Introduced INERTIA friction reduction tool

2011Ulterra establishes curve drilling bit record in Haynesville Shale

2012Developed industry-recognized LightSpeed cutter development process

2012An Ulterra 8 3/4-in. U616M PDC bit drills entire Eagle Ford well at record ROP

2012More history in the making . . .

Founded in 2005, Ulterra today

has 400 employees, representing

over a dozen nationalities, many

of whom are the industry’s most

talented PDC bit specialists.

Engineering and manufacturing

are conducted at our Fort

Worth, Texas, USA corporate

headquartersandinLeduc,

Alberta, Canada. We also have

an engineering presence and local

representatives on the ground

inMexico,Colombia,andthe

MiddleEast/NorthAfrica,which

comprise our primary areas of

operation. Ulterra is structured

as a streamlined organization

with decisions made at a local

level, cutting out the bureaucracy

prevalent in larger bit companies.

2005 Ulterra created with head quarters and primary manufacturing plant in Fort Worth, TX

2009Ulterra remains strong through the downturn by retaining personnel and doubling production capacity ahead of market recovery

2008The widely accepted UD513 PDC bit is introduced in US market

2010Growth initiatives expand with operations in Oman and establishment of representative entities in Latin America

2007 Acquired United Diamond and manufacturing facility in Alberta, Canada adding a full line of PDC bits, TorkBuster and TruGauge downhole tools

2005Immediately employed some of the industry’s most acclaimed PDC bit experts for sales, engineering, manufacturing and operations

®

An ESCO® Oil & Gas Company

Ulterra applications engineers are placed close to the

customer at the district level. Working in concert with

Ulterra field representatives, they ensure all customer re-

quirements and objectives are clearly understood and the

correct technologies are applied that meet their goals. To

optimize performance, our sales engineers are equipped

with the very latest analytical and application tools.

• Performance Database for capturing well and offset run data places vital information at the fingertips of our sales teams.

• Ulterra RAP–UP reports provide customers recaps of recent bit performance and helps ensure continuous product improvement in the client’s drilling application.

• Rock Analysis helps the sales and applications engineers better understand the customer’s drilling environment to ensure proper application of the latest technologies.

• Cypher Application Database captures analytical knowledge of drilling applications and defines project engineering objectives in terms of customer needs.

• PerformanceChartMaker(PCM)allowsfieldpersonneltoquickly conduct a comparative performance analysis of our productsandthoseofcompetitors.ThePCMisunrivaledinthe oil and gas drilling industry.

When Every Run Counts

Ulterra Field Services ®

An ESCO® Oil & Gas Company

Ulterra engineers employ the very latest technologies, including

advanced computer-aided design (CAD), to develop reliable bits

that consistently meet and exceed customer requirements.

• Solid Modeling Design – Our engineers use 3D modeling design tools (CAD) to accelerate design and ensure that consistent high quality precision is built into every bit. Verification of the designer’s intent is followed by an automated process that creates the drawing packages for production. This design tool guarantees unequaled precision and design repeatability.

• Computational Fluid Dynamics (CFD) – The use of CFD analysis in the design process balances fluid flow, cutter cooling and erosion to reduce bit balling tendencies and bit body erosion.

• Blade Strength Calculation– Each bit design undergoes a complex mathematical process to optimize blade strength and geometry. The physical and geometrical characteristics of each blade are adjusted to optimize blade integrity and cuttings flow.

• Work Curve Analysis– Ulterra helps optimize drilling efficiency by analyzing the workload of every cutter, thereby reducing cutter imbalance to ensure a configuration with even workload distribution.

Ulterra Design Engineering

When Every Run Counts

State-of-the-art cutters delivered at LightSpeed™

LightSpeedistheexclusiveprocessUlterradeveloped

to ensure you always receive the latest generation

cutter – the lifeblood of any high performing PDC bit.

TheresponsivenessandflexibilityinherentinLightSpeed

means Ulterra can consistently deliver the most reliable

PDC bits in the market, often well before the competitors

have completed field trials. That means you are assured

that every bit arriving on your location will be a new design

customized for your application. No longer do you have

to wait for an overstocked inventory to be whittled down

before receiving the most advanced technology.

What’s more, Ulterra has been recognized as having not

only the fastest, but the most thorough and quality-focused

testing procedure in the industry. The result is two families

of PDC cutters engineered for specific applications.

Product Development

LightSpeed Xti delivers exceptional impact resistance for extended reach and similarly demanding drilling applications.

LightSpeed Xta offers the utmost in abrasion resistance, making it ideal for hard-rock and high-temperature drilling, particularly in the shale plays.

Abrasion Resistance

EarlierGeneration

LightSpeed XTi

Impa

ct To

ughn

ess

LightSpeed XTa

®

An ESCO® Oil & Gas Company

At our manufacturing facilities in Fort

WorthandLeduc,Ulterrautilizes

unique and proprietary simulation

software that pre-qualifies every aspect

of the design before it goes to milling.

This exclusive process guarantees

reliability and consistency in every bit.

Manufacturing, Quality Systems and Certifications

When Every Run Counts

All bits are subjected to a

rigidQualityManagement

System(QMS)toguarantee

they comply with our proven

procedures, from raw

materials all the way through

manufacturing and post-run

repair. Our Texas and Alberta

manufacturing plants comply

with the stringent quality

assurance requirements of ISO

9000, API Specification Q1

andISO/TS29001.

Once the simulation software validates

the design, sophisticated Computer Aided

Manufacturing(CAM)technologyisused,

employing new-generation 5-axis milling

machines. This process allows faster bit

production with tooling of more precise

dimensions and consistency.

®

An ESCO® Oil & Gas Company

Ulterra Product Mix

Matrix Body PDC Bits

Proprietary mold technology, fully integrated manufacturing, application specific matrix blends and premium cutter offerings define the performance of our Matrix product line. With several hundred field proven designs, our premium matrix body PDC bits are designed for traditional, rotary, motor and directional applications in both soft and hard rock formations.

TorkBusterTM

The TorkBuster dramatically reduces bit related torque and stick-slip problems adding significant efficiency to drilling operations and thereby reducing costs.

Steel Body PDC Bits

Our steel body product line drills harder, firmer formations at a higher rate of penetration than conventional PDC products. The shankless, single piece bits feature a flat profile that optimizes depth-of-cut from bit center to gauge. These versatile bits drill from well spud to surface casing drill-out and beyond.

INERTIATM Friction Reduction Tool

The INERTIA tool generates lateral vibration into the drill string to reduce friction. Its ability to add friction-reducing vibration into a drill string can enhance weight transfer to the bit, alleviate torque and drag effects in the string and aid in drilling efficiency.

TruGauge

The TruGauge tool features a short near bit stabilizer designed specifically to achieve a better quality well bore by reducing hole spiraling and increased directional control by changing the location of the BHA contact points.

Run $/Meter

Ulterra Average Offset (6)

300

400500

600

700

100

200

0

Ulterra PDC bit saves operator over $500,000

For the first time, a single Ulterra bit has drilled the entire

intermediate section in the Tattoo field. An 8.50” (216mm)

U513Mdrilledboththeverticalandbuildsectionswiththe

same bottom hole assembly, saving the operator two trips

and $72 per-meter versus the best offset and $570,000 when

compared to the average of six section offsets in the field.

New bit drills entire Eagle Ford well at record ROP

AnewgenerationU616M,8.75”matrixPDCbitdrilledthe

wellfromsurfacecasingtoTDatarecordpaceof93ft/hr.

The six-bladed bit drilled the vertical, curve and lateral inter-

vals, comprising a total of 9,953 ft in 107 hours. The custom-

er realized a cost savings of $73,566 compared to the direct

offset and an impressive $133,024 savings when compared

to the average of five competitor offsets.

Ulterra Bit Sets Record in the Granite Wash

A12.25”U616M,six-bladematrixPDCbitwith16mmcutters

setaRogerMillsCountyfootagerecordinwesternOklahoma.

The Ulterra bit drilled 7,065 ft. from surface casing down to a

depth of 8,115 ft., saving the operator an estimated $44,500

versus the closest offset and creating a savings of $88,500

when compared to the average of five offset wells.

Ulterra bit drills shoe to TD with one bit

In a section normally drilled with two bits, a single 12.25”

Ulterra bit drilled the vertical, kick-off and build sections on a

single slick assembly. The U1969S’s ability to drill the entire

section saved the operator $81,300 when compared to the

average offset section cost. When Every Run Counts

Ulterra PDC bits have established

total footage and ROP records in

some of the world’s hardest and

most abrasive formations. From

Saudi Arabia to Colombia, Ulterra

products are helping operators

reduce overall drilling costs.

Hours

Ulterra Fastest Competitor

6080

100120140160

2040

0

Section $/ft.

Ulterra Average Offset

30

4050

60

70

10

20

0

Field Results

Cost-per-foot ($/ft.)

Ulterra Offset Well

405060708090

100

2030

0

Canada

Qatar

Oklahoma

Texas

10

Offset Well

®

An ESCO® Oil & Gas Company