1. PRAC Project Phase III: Sour Service Evaluation of ISO TR 10400 FAD Equation API Production Research Advisory Committee Pete Moore – API PRAC Chairman Peter Ellis – Program Manager

2. PRAC III C110 Test Pipe Were Donated and Shipped to Honeywell by Tenaris Detailed Mill Test Report Documenting the Pipe Characterization Attributes

3. 3 PRAC III – Phase 3 Details Testing Details:  NACE Standard TM0177 Method A – Tensile tests complete  NACE Standard TM0177 Method D – DCB tests complete  Mini/Tiny-Pipe SSC Tests – Machining Complete – EDM Notch cutting Complete – H2S Depletion test Complete – Klimit in 7% H2S solution, In-progress – Tiny Pipe testing, expected to begin 4 th Qtr 2013  Full Scale Tests with Man-made OD Surface Imperfections ID/OD and OD only or ID only H 2 S Exposure – Pressurized ID environment and OD exposure with replenishment/purging of 7% H2S in solution held in annular volume between plastic sleeve and OD of sample. – Testing to begin 2 nd quarter 2014

4. Machining of Tiny Pipe Complete EDM Notching Complete EDM OD Notch ~ 4 inches

5. Tiny Pipe H 2 S Depletion Test 40% Depletion 60% Depletion Soaked in 100% H2S for 17.72 hours, then flushed with distilled H2O

6. 7% NACE A Enviroment

8. Testing of Full Size Pipe To Begin 2 nd Quarter 2014