1. NFS-Cement Shield ® Process

2. Description NFS-Cement Shield ® Process is a dewatering system that can be applied through the drill string into any fracture to create a strong bridge. It can be pumped ahead of any cement job to aid bringing cement to the desired depth. A broad PSD range can assist reducing or eliminating channeling by filling all cracks, micro-fractures and cavernous formations. This unique process can be applied with the rig equipment or cement units. The NFS-Cement Shield ® can cure mud and cement losses instantly without time or temperature dependency.

3. Advantages Single sack systemEasy mixing and pumping No spacer required No setting time required

4. Benefits Mixes in all types of fluids Environmentally acceptable; complies with all LC 50 requirements Contaminant friendly Temperature stable up to 400°F

5. Physical Properties Appearance:Powder Color:Light gray to Black Specific Gravity:1.89

6. Packaging: NFS-Cement Shield ® is packaged in 25 lb paper sacks or 2000 lb super sacks.

7. Mixing Recommendations 25 barrel increments (in water): In a clean mixing tank, prepare 25 barrels of fresh water or seawater, then mix 90 bags (90 ppb) of NFS-Cement Shield ® through the mud hopper, add Barite for desired density 25 barrels increments (in inverts): Place 25 barrels of existing fluid or diesel in mixing tank, then add 70 bags (70 ppb) of NFS-Cement Shield ® through the mud hopper.

8. Placement: Prepare the NFS-Cement Shield ® slurry in a clean tank. Simply pump with the rig pumps or cement unit. Clear the drill string but do not over displace. Close the Hydril, perform a gentle squeeze (100-200 psi). Hold for 30 minutes. Open Hydril. Break circulation.

9. Additional Technical Information: NFS- Cement Shield ® has a broad PSD range to address sealing and bridging of micro-fractures and larger openings Discharged water which is squeezed from the slurry will have a significant chemical reaction from the polymer technology in the mixture. Once into the formation the fluid discharged will bond with any clay or gumbo shale to form a cement like bridge inside the fracture. After the water is discharged into the formation, a solid bridge will form at the tip of the fracture Dewatered plug has a compressive strength of >3000 PSI

10. Additional Technical Information:

11. Laboratory Testing/ Results: Prepared 350 cc slurry with 90 grams of NFS-Cement Shield ® placed in a PPT device with a 150 micron disk then squeezed filtrate out with 100 PSI pressure. Placed 17.0 ppg oil base mud on top of the disk then pressured to 1000 PSI Results: Held 1000 PSI pressure for 30 minutes with zero spurt loss and zero filtrate, thus NFS-Cement Shield ® plug was solid and no fluid could penetrate through the 150 micron disk

12. Laboratory Testing/ Results:

13. ASTM 1633 Test Procedure by independent testing laboratory

14. Laboratory Testing/ Results: Date:10/15/09 Lab Report: Compare NFS-Cement Shield ® with graphite and Other LCM blend in a 13.7 lb OBM Testing Procedures: 90 ppb of each additive was mixed for 5 minutes on a multi- mixer in a 13.7 lb OBM and tested in an HPHT using a 190 micron ceramic disc with 1000 psi pressure @ 200°F. PPT-Test ResultsNFS-Cement Shield GraphiteLCM Blend, Cal. Carb., graphite, fiber 200°F HPHT 190 micron disc Filtrate, mls 1.00 17.00 15.00

15. Laboratory Testing/ Results Continued

16. Questions ?