1. Trends in Barite Consumption Oilfield Application

2. Average Rig Count 2005 2004 2003 2002 2005 2004 2003 2002 US 1324 1190 1032 831 US 1324 1190 1032 831 Canada 465 369 372 266 Canada 465 369 372 266 Int. 870 836 770 732 Int. 870 836 770 732 Total 2659 2395 2174 1829 Total 2659 2395 2174 1829

3. Fine Grind Barite Particle Size Comparison Particle Size Comparison MICRON MICRON d90 d50 d10 d90 d50 d10 API 70-73 15-20 1-2 Fine Grind 42-48 8-10.5-1.2

4. Fine Grind Barite Applications Applications Extended Reach WellsExtended Reach Wells Coiled Tubing DrillingCoiled Tubing Drilling TTRD WellsTTRD Wells HTHP wellsHTHP wells

5. Advantages of Fine Grind Ability to formulate low viscosity fluids Ability to formulate low viscosity fluids Minimize ECD Minimize ECD Minimize Barite Sag Minimize Barite Sag Utilization of finer screens on solids control equipment Utilization of finer screens on solids control equipment

6. Alternative Weighting Materials Type Tons Hematite 30K Hematite 30K Ilmenite 20K Ilmenite 20K MicroMax 5K MicroMax 5K

7. Micromax  General Properties Density: 4.8 gm/cc Density: 4.8 gm/cc Composition: Manganese Tetroxide Composition: Manganese Tetroxide Particle size: 1-2 micron d50 Particle size: 1-2 micron d50 By product from Manganese By product from Manganese smelting plants in Norway smelting plants in Norway Spherical shape vs. crystalline Spherical shape vs. crystalline

8. Trends in Drilling Fluids Finer Grind materials (Sag) Finer Grind materials (Sag) Increased Environmental Regulations Increased Environmental Regulations  Norway, US, UK, SE. Asia, Africa  Synthetic Fluids, zero discharge  Recycling of expensive fluids