Merrick Systems Inc. Drilling Products Rapid Component Identification System Covered by one or more of the following U.S. patent No’s: 5,142,128; 5,360,967; 6,347,292; 6,480,811; and 6,604,063. (Additional patents pending)

Presentation ‘Typical’ Drilling Rig Information Collection Drilling Products for RFID –Tool-Hand™ and Rig-Hand™ How they work / What they do Business Values Equipment Life Cycle – Cradle to Grave Operations

Rig Measurement Technology

WITSML WEB/SOA The Rig-Hand™ System Doghouse / Field Office Enterprise Solution

Features Inspections Certifications Rental Use Pick Lists Use Reports Location (Ver 2) Tool Schematics (Maintenance…) Tool-Hand™ Features PLUS: Operations Focused Runs Strings Plans Field Use String Schematic Tool-Hand™Rig-Hand™

Applications of Tool-Hand™ + Rig-Hand™ Safety Equipment Drilling & Production Chemicals Drill Pipe, HWDP Drill Bits, Hole Openers Chicksans / Pressure Vessels Casing and Production Tubing Packers, Bridge Plugs, Pumps…

Software Screen Shots

We Have RFID Tags for Surface & Downhole Oilfield Equipment

Both Thick & Thin Walled Components

Just Say ‘NO’ to Viruses on RFID Tags NO VIRUS We have a secure ‘read’ algorithm Our system can perform check-sum confirmation of a valid tag read We use special tag’s and frequencies appropriate for downhole equipment rather then mass-market retail Our tags only carry an identifier: data is in the database - AND Finally- Our Tags are READ-ONLY

Unique Identifier, Coupled With Information Dimensions Materials Ownership Certification Use History Location RFID

Components are easily tracked from manufacture through use

Cradle to Grave Value

Value Propositions Asset Management / Operations / Safety –Reduced Drill String Failures –Increased Probability of Fish Recovery –Procurement –Availability –Suitability (proper application of materials) –Location –Inspection & Maintenance –Regulatory Compliance

Drilling Operations Reduced Drilling Costs –Changes Inspection Frequency & Results –Reduces Risk –Improved Engineering Optimizations –Automatic Schematics Real-Time and Cumulative Fatigue Indicators Faster, Better, Safer, Cheaper

Partners & Strategies (Operators) WITSML Industry Standard Data Integration OEM Tagging of Oilfield Tubulars and Equipment Royalty and license arrangement for standard String Information Integration to Geological and Geophysical Materials Location and Status Cementing Operations Mug Logging Directional Drilling Optimized Operations (BHHP, T&D) Asset Management Real-Time Pipe Fatigue Display Regulatory Compliance

Partners & Strategies WITSML Industry Standard Data Integration Royalty and license arrangements –OEM Manufacturing & Service Companies Installation Services; OEM and Retro-Fit Internal Use Inspections Field Services Integration

Pricing Model Components: Handheld / portable devices RCID software (handhelds and workstation) Tags ($15-$40 installed) Fixed reader Services (implementation, training, support) In order to more accurately quantify for budgeting, a requirements analysis will be necessary to provide a system price proposal.

Questions?