650 t LAND RIG

To whom it may concern, Discovery Drilling Equipment offers Swing Lift Substructure (SL 650) and Cantilever Mast (CM 650) of 650t load capacity. The product is 100% complete and prepared for shipment. The product was completed on the 30th of October and is available for the first buyer. The product contains mast, substructure, crown block, crown frame, raising line equalizer and dead line anchor. All the parts are manufactured on the Discovery Drilling Equipment (Ukraine) facility in Stryi and come fully API monogrammed. The product quality is guaranteed by complete compliance with various international standards including API 4F, API 8C, ISO9001, etc. The product was tested by all relating measurement of non-destructive control. Moreover, 100% of critical welds were tested by ultrasonic and MPC. The critical parts are made of the top-quality steel from major EU steel manufacturers. Please see the specification, pricing, pictures and drawings of the product below. More technical details as well as more pictures and standard warranty you may find at our web: www.discoveryde.com/p016 Discovery Drilling Equipment has extensive experience in drilling rig manufacturing. For many years DDE rigs are successfully operated by major drilling companies and contractors like BP, Shell, Weatherford, etc on 5 continents. More information about our clients and projects you may find at www.facebook.com/discoveryde. Any prospective visitors are welcome to visit us at Stryi, Ukraine, we will be happy to arrange the car transfer and provide you with any logistic support needed. Please do not hesitate to contact us in case of any further questions or clarifications. Sincerely, Ralph John Vice President - Global Business Development DISCOVERY INDUSTRIAL SERVICES Cell: +971-50-708-2638 (UAE Mobile) E-mail: sales@discoveryde.com www.discoveryde.com www.discovery-industrial.com

GENERAL INFORMATION

1

RIG SPECIFICATION

Section 1 - CM 650 Mast 1,1 Mast Assembly Manufacturer: DDE Model Number: CM650 Design Compliance API 4F, 3rd Edition Ambient temperature design -40˚C thru +55o C Type Open face, Cantilever

1,2 Static Hook Load Capacity, Tons (Metric Tons) 10 lines 507 (460) 12 lines 584 (530) 14 lines 650 (590)

1,3 General Dimensions, feet (mm) Clear working height 154 46848 Clear width at base 30 9140 Dimensions at Crown 9 X 7.5 (2400 X 2400)

1,4 Pipe handling Range II, Triples

Racking Capacity - Drill Pipe, feet (meters) 5" (127 mm) Drill Pipe 29016 (8846) 5 1/2" (140 mm) Drill Pipe 24552 (7485) 5 7/8" (149 mm) Drill Pipe 24552 (7485) 6 5/8" (168 mm) Drill Pipe 18600 (5671) Racking Capacity - Drill Collars, stands 12

Racking board adjustable range, feet (mm) 82 to 87 (25000 to 26520)

Racking board fingers One size only furnished, client to specify

1,5 Belly Board Distance from Rig Floor, feet (mm) 45 (13716)

1,6 Tong counter weights Quantity 4 (2) Manual Tongs (1) Spinning Wrench (1) Spare

1,7 Ladder Floor to Crown - Drillers side Rung or Cage type Client to specify

1,8 Crown Block Manufacturer: DDE Model Number: CB7808601500 Sheave Design Compliance API 8C Configuration Skewed Capacity, Tons/Metric Tons 780 (708) Drilling Line Size, inches/mm 1,5 (38) Fastline Sheave, inches/mm 60 (1524) Cluster Sheaves, quantity 7 Size, inches/mm 60 (1524)

2

RIG SPECIFICATION

1,9 Crown Frame Manufacturer: DDE Frame Design Compliance API 4F, 3rd edition Bumper blocks Quantity 2 Size, inches (mm) 10 X 10 (254 X 254) Certified Pad Eyes Certified counter weight Pad Eyes Quantity 4 SWL, lbs (kgs) 5000 (2268) Certified Tugger Pad Eyes Quantity 2 SWL, lbs (kgs) 12000 (5443) Certified Man Rider Pad Eye Quantity 1 SWL, lbs (kgs) 1000 (454) Certified Coreline Sheave Pad Eye, number Quantity 1 SWL, Tons (Metric Tons) 25 (23) Certified Block Hanging Pad Eye, number Quantity 1 SWL, Tons (Metric Tons) 40 (36)

1,10 Raising Line equalizer Manufacturer: DDE Model Number: RLE 375 Design Compliance API 8C Capacity, Tons/Metric Tons 375 (340)

1,11 Deadline Anchor Manufacturer DDE Model DLA115 Design Compliance API 8C Drum diameter, inches/mm 33 (838) Standard clamp assembly, inches/mm 1,5 (38) Mounting Floor or leg Deadline load rating, Tons/Metric Tons 63 (28) Load Cell Type Compression, by Client

3

SPECIFICATION

RIG SPECIFICATION

4

Section 2 - SL 650 Substructure

2,1 Substructure Assembly Manufacturer DDE Model SL650 Design Compliance API 4F, 3rd Edition Type Parallelogram type, slingshot Capacities, Tons (Metric Tons) Casing capacity 650 (590) Setback capacity 430 (390) Simultaneous capacity 1080 (980) General Dimensions, Feet (mm) Floor Height 36 (11000) Clear height under rotary beams 30 (9130) Drill Floor Dimensions Length 39 (12000) Width 40 (12100) Top Plate Girder Box Dimensions Length 39 (12000) Width 8 (2380) Hieght 4 (1350) Bottom Plate Girder Box Dimensions Length 70 (21300) Width 8 (2380) Hieght 7 (2000) Designed for retro fit to: Rolling systems Walking systems Skidding systems Base Dimensions Length 70 (21300) Width 40 (12100) BOP Handling Beams Quantity 2 Rating, each, Tons (Metric Tons) 50 (45)

RIG SPECIFICATION

5

Section 3 - Documentation and Manuals 3,1 Documentation DDE Standard Data Book CM 650 and SL 650 Section 1 Equipment Name Purchase Order Sales Order Serial Number Part Numbers Purchaser Section 2 DDE Certificate of Conformance Section 3 DDE Certificate of Compliance Section 4 Material Test Reports Section 5 Non Destructive Testing Reports Section 6 Material traceability as per API 4F.

3,2 Operations and Maintenance Manuals Model CM 650 and SL 650 No. of Hard copies 3 No. of Electronic copies 1 Contents Operation Manuals Maintenance Manuals Recommended spares list Manufacturer's Data books Manufacturing testing documents Manufacturing Commissioning documents

Section 4 - Coating System 4,1 Coating System Total Coating Area CM 650 and SL 650 Procedure DDE Standard Sandblast SA 2 1/2 Primer 160 Microns minimum Topcoat 60 Microns minimum Colors Client specified RAL codes

RIG SPECIFICATION

6

Section 5 - Optional Items 5,1 Racking Board Winch Price $13 200

Type Air Manufacturer: Ingersol Rand, or similar Maximum pull, lbs (kgs) 1500 (680) Line size, inches (mm) 0,375 (10)

5,2 Escape and fall arrest equipment Price $2 160 Emergency Escape Line, type Geronimo Line size, inches (mm) 0,5625 (14) Derrickman Fall Arrest, type DBI Sala Line size, inches (mm) 0,375 (10)

5,3 Mast Raising Lines Price $29 179 Manufacturer: Various Line size, inches/mm 2,75 (70) Type 6 X 36 IWRC, EIPS Nominal Strength, Tons/Metric Tons 368 (334)

5,4 Casing Stabbing Board Price $30 750 Manufacturer: Discovery Drilling Equipment Model Number: CSB Adjustable range, feet (mm) 25 to 40 (7600 to 12000)

5,5 Hydraulic Winches for Substructure Raising Price $114 000 Manufacturer Lantec Industries Drum Diameter, inches (mm) 14 (356) Drum Length, inches (mm) 30 (762) Single line pull Bare drum, lbs (daN) 73400 (32648) Full drum, lbs/daN 40800 (18148)

5,6 Substructure Raising Lines Price $14 400 Manufacturer Various Line size, inches/mm 1,25 (32) Type 6 X 36 IWRC, EIPS Nominal Strength, Tons (Metric Tons) 80 (73)

5,7 HPU Assembly Price $60 000 Manufacturer Discovery Drilling Equipment Model HPUCR375 Power Electric Motor HP (kW) 75 (56) Output Volume, GPM (LPM) 30 (114) Output Pressure, psi (kPa) 3000 (21000) Oil reservoir, gallons/liters 400 (1520) Price $10 500

5,8 Stairs Quantity 4 Rolling stairs raised with sub Drawworks side and V-Door side Fixed stairs Drillers side to ground Off drillers side as per customers specifications

RIG SPECIFICATION

7

5,9 Pullback/Snubbing posts Price $3 000 Number 2 Size, inches (mm) 6 (152) Wall thickness XXH

5,10 V-Door Ramp Price $21 000 Manufacturer Discovery Drilling Equipment Model Number VDRSL650 Dimensions, L X W, feet (mm) 39 X 5 (11887 X 1524) Pipe stop Size, inches (mm) 6 (152) Wall Thickness XXH Type Hinged

5,11 Handrails Price $7 500 Manufacturer Discovery Drilling Equipment Type Square tubing Size, inches (mm) 1,5 (38) Height, inches (mm) 42 (1067) Safety kick plate, size inches (mm) 6 (152)

Length Perimter of floor

Open, dog house side Open, v-door and exiats

5,12 Flooring, compatible with customers Drawworks and Rotary

Price $15 000

Manufacturer Discovery Drilling Equipment Type Checker plate Plate thickness, inches (mm) 0,375 (10)

Section 6 - Freight

FOB Odessa port CIF Dubai port

Price $95 000*

Price $295 000*

Delivery to customer provided destination can be quoted upon request

*Delivery prices are estimated as of November 1st and shall be revised as of the shipment date

PRICING

8

Pricing Summary

Section 1 - CM 650 Mast $700 000

Section 2 - SL 650 Substructure $900 000

Section 3 - Documentation and Manuals Included

Section 4 - Coating $190 000

Sub Total (FCA Stryi) $1 790 000

Section 5 - Optional Items $320 689

Sub Total (FCA Stryi) $2 110 689

Section 6 - Freight Optional

Total Quotation $2 110 689

DELIVERY TERMS & CONDITIONS

9

Delivery: 1) Delivery FCA is estimated to be 10 to 15 days from receipt of down payment.

2) Delivery FCA shall be from Striy, Ukraine. 3) Delivery timing is based upon known conditions at the time of this quotation.

4) Delivery timing can change without notice due to actual delivery of outsourced and/or client furnished components.

Conditions: 1) Any deviations shall be agreed to as per change order with price decrease/increase and delivery

changes based on client's specific requirements. 2) All structural steel will be European weights, grades, and shapes. 3) All prices quoted are ex-works, Striy, Ukraine unless other terms are agreed to. 4) Sales price does not include VAT.

5) Quotation valid for 30 days. 6) All PO’s shall be addressed as follows: Discovery Industrial Services Limited 16 Hanover Square Mayfair, London W1S 1HT United Kingdom 7) Standard Warranty attached. Payment Terms - Initial Purchase Order: 1) 40% Down payment 2) 40% upon acceptance. 3) 15% Prior to shipment 4) 5% Upon receipt of Documentation Payment Terms - Change Orders during manufacturing period:

1) 100% due upon receipt of Change Order invoice

13

14

15

12 16

RIG

10

PICTURES AS OF 01.11.2012

RIG PICTURES AS OF 01.11.2012

11

RIG PICTURES AS OF 01.11.2012

12

OUR CERTIFICATES

17