Areas of Operations, Service Centers and Opportunities

Corporate HeadquartersLafayette, LA337.261.3305

Gulf of Mexico SupportMaurice, LA337.893.1880

Haynesville ShaleMansfield, LA318.676.9292

Woodford ShalePhillips, OK580.927.9229

Granite WashShamrock, TX806.256.2315

Marcellus ShaleTowanda, PA570.268.8918

Eagle FordVictoria, TX361.550.3010

Eliminate or significantly reduce costs associated with disposal of Synthetic and Oil Based Drilling Waste

Create savings by converting a waste byproduct into a reusable drilling fluid that can be returned back to the active drilling system as opposed to transporting to a disposal facility

Substantially reduce or eliminate the need for mixing cuttings with lime or woodchips to solidify drilling waste prior to trucking to disposal sites

Eliminate or limit environmental exposure at the drilling site, local communities and disposal sites

Cuttings Dryer and Centrifuge Goals and Objectives

Solids Control Alternatives

Solids control historically consisted of a rig shaker and a reserve pit

• Industry is almost completely converted to “closed loop systems” as a result of operator environmental awareness and more stringent regulations

• Tighter regulations and increasing disposal costs are driving the adoption of closed loop systems with advanced solids control capabilities

• Operators are increasingly gaining appreciation for advantages of EDS’s advanced solids control services

Reserve Pit Screen Shaker~15-25% OOC*

EDS Dryer& Centrifuge< ~3% OOC*

AdvancedSolids

Control

ObsoleteCuttings

Treatment

Drying Shaker& Centrifuge~10-15% OOC*

Stationary Dryer & Centrifuge~5-7% OOC*

* Oil on Cuttings

Solids Control Alternatives

Reserve Pit DisposalTraditional Closed-Loop

Drilling Waste From well

Screen Shaker

Reserve Pit

Drying ShakerDisposal -

Drying Agent / Kill Cement

Cuttings Dryer CentrifugeDisposal -No Drying

Agent

Disposal -Drying Agent /

Kill Cement

EDS’s advanced solids control services provide tremendous benefits to its customers Industry-leading oil on cuttings of ~ 3% Maximize recycled drilling fluids

Minimize solids content of recycled fluids to reduce need for new mud to be added to meet active mud system requirements

Reduce costs by saving on drilling fluids and disposalReserve Pit DisposalTraditional Closed-Loop

Drilling Waste From well

Screen Shaker

Reserve Pit

Drying ShakerDisposal -

Drying Agent / Kill Cement

Cuttings Dryer CentrifugeDisposal -No Drying

Agent

Disposal -Drying Agent /

Kill Cement

Reserve Pit DisposalTraditional Closed-Loop

Drilling Waste From well

Screen Shaker

Reserve Pit

Drying ShakerDisposal -

Drying Agent / Kill Cement

Cuttings Dryer CentrifugeDisposal -No Drying

Agent

Disposal -Drying Agent /

Kill Cement

Reserve Pit DisposalTraditional Closed-Loop

Drilling Waste From well

Screen Shaker

Reserve Pit

Drying ShakerDisposal -

Drying Agent / Kill Cement

Cuttings Dryer CentrifugeDisposal -No Drying

Agent

Disposal -Drying Agent /

Kill Cement

Principle of Cuttings Dryer

Feed

Mobile Cuttings Drying Unit

Mobile Cuttings Drying Technology

Centrifuge Process

SolidsDischarge

SolidsLiquids

LiquidDischarge

SlurryIn

GearBox

Centrifuge Operation

Mobile Centrifuge Units

Mobile Centrifuge Technology

Skid Mounted Cuttings Drying Systems

Skid Mounted Cuttings Drying Systems

DRYERTANK20 bbl EFFLUENT

PDM PUMP

FEED AUGER

DISCHARGE AUGER

ENVIRONMENTAL DRILLINGSOLUTIONS

INTEGRATED SKID MOUNTEDDRYING UNIT

TANK30 bbl AG TANK

3" M-15 PUMPS

DRYERTANK

EFFLUENTHIGH SPEED

CENTRIFUGEPDM PUMP

BEFORE18.4% Oil on Cuttings AFTER

2.8% Oil on Cuttings

Photo Support

Dried Cuttings Product from Vertical Dryer<3% OOC

Photo Support

Recovered Effluent

Dual and Single Agitator Tanks 60, 80, 136 bbls

Agitator Tanks

MDU/MCU Cuttings Drying System Typical Layout

300 - 400 BBL CUTTINGS COLLECTION TANKOPEN TOP CUTTINGS DISCHARGE TANK

CENTRIFUGE AGITATOR TANK

Skid Cuttings Drying System Typical Layout

DISCHARGE AUGERS

SHAKER CUTTINGS CATCH TANK

TRACHOEDRIED CUTTINGS AND CENTRIFUGE DISCHARGE BOX

EFFLUENT RET

MUD PITS

SKID MOUNTED DRYING UNIT

DRIED SOLIDS DISCHARGE

136 bbl AG

ITA

TO

R T

AN

K

MDU & MCU Processing On Location

MDU & MCU Processing On Location

Skid Mounted Dryers On Locations

Savings Analysis

Mud Recovery Volumes

Hole Size FootageEst bbls

Generated Cuttings & Mud

bbls Recovered

by MDU

bbls Returned after MCU

$/bbl MudTotal Mud Savings

$/bbl Disposal

Disposal w/o EDS

Disposal w EDS

Total Disposal Savings

Total Savings

8.75 5800 1078 539 431 $225.00 $97,060.48 $65.00 $175,248.10 $42,059.54 $133,188.55 $230,249.04

Mobile Dryer & Centrifuge Cost$/Foot Total Cost$11.50 $66,700.00

Savings Less Charges$163,549.04

Operator

PA-Marcellus Shale

3/18/2011

Cost Analysis

Post Well Data-Example 1 P ho n e # (3 1 8) 8 3 7 69 6 1

M u d R e c ov e ry V o lum e s

D a teb b ls

P r o ce s s e d

b b ls R e c o v e re d

b y M D U

b b ls R e tu r n e d

R O C % S h a k e r

R O C % D r y er

$ /b b l M u dT o ta l M u d

S a v in g s$ /b b l

D is p o s a lD is p o s a l w /o E D S

D is p o s a l w E D S

T o ta l D is p o s a l S av in g s

T o ta l S a v in g s

8 /8 /1 1 2 1 7 1 0 0 $ 2 2 5 .0 0 $ 0 .0 0 $ 6 5 .0 0 $ 3 5 ,2 6 2 .5 0 $ 1 4 ,1 0 5 .0 0 $ 2 1 ,1 5 7 .5 0 $ 2 1 ,15 7 .5 08 /9 /1 1 2 1 7 1 0 4 6 0 1 4 .2 5 % 3 .2 7 % $ 2 2 5 .0 0 $ 1 3 ,5 0 0 .0 0 $ 6 5 .0 0 $ 3 5 ,2 6 2 .5 0 $ 1 0 ,2 0 5 .0 0 $ 2 5 ,0 5 7 .5 0 $ 3 8 ,55 7 .5 0

8 /10 /1 1 1 3 0 8 5 1 3 5 $ 2 2 5 .0 0 $ 3 0 ,3 7 5 .0 0 $ 6 5 .0 0 $ 2 1 ,1 2 5 .0 0 -$ 3 2 5 .0 0 $ 2 1 ,4 5 0 .0 0 $ 5 1 ,82 5 .0 08 /1 0 .2 /1 1 2 1 7 9 1 6 8 1 3 .9 4 % 3 .8 6 % $ 2 2 5 .0 0 $ 1 5 ,3 0 0 .0 0 $ 6 5 .0 0 $ 3 5 ,2 6 2 .5 0 $ 9 ,6 85 .0 0 $ 2 5 ,5 7 7 .5 0 $ 4 0 ,87 7 .5 08 /11 /1 1 1 4 5 1 0 7 7 6 $ 2 2 5 .0 0 $ 1 7 ,1 0 0 .0 0 $ 6 5 .0 0 $ 2 3 ,5 6 2 .5 0 $ 4 ,4 85 .0 0 $ 1 9 ,0 7 7 .5 0 $ 3 6 ,17 7 .5 0

8 /11 .2 /2 0 1 1 2 1 7 1 8 9 1 3 8 1 5 .8 6 % 2 .4 9 % $ 2 2 5 .0 0 $ 3 1 ,0 5 0 .0 0 $ 6 5 .0 0 $ 3 5 ,2 6 2 .5 0 $ 5 ,1 35 .0 0 $ 3 0 ,1 2 7 .5 0 $ 6 1 ,17 7 .5 08 /13 /1 1 1 1 5 8 5 1 0 6 $ 2 2 5 .0 0 $ 2 3 ,8 5 0 .0 0 $ 6 5 .0 0 $ 1 8 ,6 8 7 .5 0 $ 5 8 5 .0 0 $ 1 8 ,1 0 2 .5 0 $ 4 1 ,95 2 .5 08 /14 /1 1 1 5 0 8 8 6 8 $ 2 2 5 .0 0 $ 1 5 ,3 0 0 .0 0 $ 6 5 .0 0 $ 2 4 ,3 7 5 .0 0 $ 5 ,3 30 .0 0 $ 1 9 ,0 4 5 .0 0 $ 3 4 ,34 5 .0 0

1 4 0 8 8 4 9 6 5 1 1 4 .6 8 % 3 .2 1 % $ 1 4 6 ,4 7 5 .0 0 $ 2 2 8 ,8 0 0 .0 0 $ 4 9 ,20 5 .0 0 $ 1 7 9 ,5 9 5 .0 0 $ 3 2 6 ,0 7 0 .0 0

M o bi le D ry e r & C e n tr ifu g e C o s t

$ /P r o c e s s F o o ta g eT o ta l

C h a r g es$ 7 6 ,0 3 8 .0 0

S a v in g s L es s C h a rg e s$ 2 5 0 ,0 3 2 .0 0

D a t e :

R ig N a m e :

P o s t W e ll D at a

O p e r at o r :M a rc e l lu s S h a l eL o ca t io n :

W e l l N a m e :

T e s te d b y:

2 1 7 2 1 7

1 3 0

2 1 7

1 4 5

2 17

11 5

1 5 0

10 0 1 0 48 5 9 1

1 0 7

1 8 9

85 8 8

6 0

1 35

6 8 7 6

13 8

1 0 6

6 8

0

5 0

1 0 0

1 5 0

2 0 0

2 5 0

8/ 8 / 1 1 8 / 9 / 1 1 8 / 10 / 1 1 8 / 1 0 .2 / 1 1 8 /1 1 / 1 1 8 / 1 1 .2 / 2 01 1 8 / 1 3 / 1 1 8 / 1 4 / 11

b b ls P ro c e s se d

b b ls R e c o v e re d b y M D U

b b ls R e t u rn e d

Post Well Data-Example 2

P ho n e # (3 1 8) 8 3 7 69 6 1

M u d R e c ov e ry V o lum e s

D a teb b ls

P r o c es s e d

b b ls R e co v e r ed

b y M D U

b b ls R e tu r n e d

R O C % S h ak e r s

R O C % D r y er

$ /b b l M u dT o ta l M u d

S a v in g s$ /b b l

D is p o s a lD is p o s a l w /o E D S

D is p o s a l w E D S

T o ta l D is p o s a l S a v in g s

T o ta l S a v in g s

7 /16 /1 1 1 3 5 9 6 7 7 $ 2 2 5 .0 0 $ 1 7 ,2 8 0 .0 0 $ 6 5 .0 0 $ 2 1 ,9 3 7 .5 0 $ 3 ,7 8 3 .0 0 $ 1 8 ,1 5 4 .5 0 $ 35 ,4 34 .5 07 /17 /1 1 2 1 0 18 0 1 4 4 $ 2 2 5 .0 0 $ 3 2 ,4 0 0 .0 0 $ 6 5 .0 0 $ 3 4 ,1 2 5 .0 0 $ 4 ,2 9 0 .0 0 $ 2 9 ,8 3 5 .0 0 $ 62 ,2 35 .0 07 /18 /1 1 1 8 9 13 6 1 0 9 1 4 .29 4 .7 5 $ 2 2 5 .0 0 $ 2 4 ,4 8 0 .0 0 $ 6 5 .0 0 $ 3 0 ,7 1 2 .5 0 $ 5 ,2 1 3 .0 0 $ 2 5 ,4 9 9 .5 0 $ 49 ,9 79 .5 0

7 /1 8 .2 /1 1 2 0 0 16 8 1 3 4 $ 2 2 5 .0 0 $ 3 0 ,2 4 0 .0 0 $ 6 5 .0 0 $ 3 2 ,5 0 0 .0 0 $ 4 ,2 6 4 .0 0 $ 2 8 ,2 3 6 .0 0 $ 58 ,4 76 .0 07 /19 /1 1 1 2 0 8 9 7 1 $ 2 2 5 .0 0 $ 1 6 ,0 2 0 .0 0 $ 6 5 .0 0 $ 1 9 ,5 0 0 .0 0 $ 3 ,1 7 2 .0 0 $ 1 6 ,3 2 8 .0 0 $ 32 ,3 48 .0 07 /21 /1 1 1 3 5 6 4 5 1 1 5 .68 3 .9 4 $ 2 2 5 .0 0 $ 1 1 ,5 2 0 .0 0 $ 6 5 .0 0 $ 2 1 ,9 3 7 .5 0 $ 5 ,4 4 7 .0 0 $ 1 6 ,4 9 0 .5 0 $ 28 ,0 10 .5 0

7 /2 1 .2 /1 1 1 8 9 12 4 9 9 $ 2 2 5 .0 0 $ 2 2 ,3 2 0 .0 0 $ 6 5 .0 0 $ 3 0 ,7 1 2 .5 0 $ 5 ,8 3 7 .0 0 $ 2 4 ,8 7 5 .5 0 $ 47 ,1 95 .5 011 7 8 85 7 6 8 6 1 4 .9 9 4 .3 5 $ 1 5 4 ,2 6 0 .0 0 $ 1 91 ,4 2 5 .0 0 $ 32 ,0 06 .0 0 $ 1 5 9 ,4 1 9 .0 0 $ 3 13 ,6 79 .0 0

M o bi le D ry e r & C e n tr ifu g e C o s t

$ /P r o c es s F o o ta g eT o ta l

C h a r g e s$5 6 ,60 2 .00

S a v in g s L es s C h a rg e s$ 25 7 ,07 7 .00

D a te :

R i g N a m e :

P o st W e ll D a ta

O p e ra to r:M ar c el lu s S h a leL o c a tio n :

W e ll N a m e :

T e s te d b y:

1 3 5

2 1 01 8 9 2 0 0

1 2 01 3 5

1 8 9

9 6

1 8 0

1 3 6

16 8

8 96 4

12 4

7 7

1 4 4

1 0 91 3 4

7 151

9 9

0

5 0

1 0 0

1 5 0

2 0 0

2 5 0

7 / 1 6 /1 1 7 / 1 7 / 1 1 7 /1 8 / 1 1 7/ 1 8 .2 / 1 1 7 / 1 9 / 1 1 7 /2 1 / 1 1 7/ 2 1 .2 / 1 1

b b ls P ro c e ss e d

b b ls R e c o v e re d b y M D U

b b ls R e t u rn e d

50 Hp/30 Hp-Compact direct drive design, resulting in less downtime without sacrificing vacuum capability

100 Hp Belt driven units for drill cuttings conveyance

No belt slippage, tensioning, or belt replacements; resulting in reduced or elimination of service charges

Galvanized for easy cleaning and maintenance

Explosion proof

1100 CFM -1800 CFM

18” Hg/15” Hg

75-80 decibels

Rig Floor Vacuum System Features & Benefits

Pressure Washer Product Line

Providing reliable washers for rig cleanliness.

480 Volt Explosion Proof Electric Pressure Washers

Hot Water Diesel Powered Pressure Washers

Cold Water Portable Diesel Powered Pressure Washers

Shaker Screen Cleaners

2” & 3” Diaphragm Pumps

Location Pumps

3000 Watt Light Power Plants

Cooling Fans

Pipe Rack Pans

BOP Pans

Miscellaneous Equipment Rentals

Areas of Operations and Service Centers

Visit us at www.environmentalds.com

All Information Herein to be Considered Confidential &

Proprietary Information; Property of Environmental

Drilling Solutions, LLC; Patent Pending